Author: Brian Zinchuk

Grand sweeping fairytales – Smith calls a spade a spade on renewables

Danielle Smith: Grand sweeping fairytales that threaten Canadians ability to keep the lights on are no way to speed things up.

I’ll have more on that pretty impressive press conference as I have time.

As well, some oil companies aren’t doing too badly, as Saturn Oil & Gas reports it has tripled its production in a year.

Also, in last week’s Crown mineral rights land sale in Saskatchewan, one, singular exploration permit went for over $6 million. The last time I saw numbers like that for one piece of land was like during the Bakken boom of 2008. It’s simply unheard of in the last 15 years to see a single parcel, even an exploratory permit, go for that much. In recent years, we’d be lucky if a few dozen leases, combined, would make up a total of $6 million. So this is verrrrry interesting. It was near Kindersley, by the way.

Clean Electricity Regulations released: carbon capture or bust

Steven Guilbeault, Minister of Environment and Climate Change, Julie Dabrusin, Parliamentary Secretary to the Minister of Natural Resources and the Minister of Environment and Climate Change, Luke Barber, Chief Operating Officer, University of Toronto and Scott Hendershot, Senior Manager, Sustainability Office, University of Toronto, standing together on a rooftop covered in solar panels. Government of Canada handout

Clean Electricity Regulations released: carbon capture needed for continued fossil fuel power generation. #Saskatchewan will not “defy the laws of thermodynamics,” says Premier Scott Moe.

I still need to dig deep into this. I’ve sent a list of questions to SaskPower and the provincial government seeking response next week, as this dropped just as we’re packing to head to the cabin. Because of course they would release it during the dog days of August.

Note: these regulations expect the electrical grid demand to grow by 2.5x in 26 years, three months and 21 days. Good luck with that. Expect a column next week.

Seeing the other side’s playbook – Project of the Century

Ever want to see the other team’s playbook? Project of the Century (report link)– the most comprehensive discussion of energy transition we’ve seen to date, was published by the Public Policy Forum. It’s principally about doubling the electrical grid, or more, but doing so without increasing fossil fuel emissions. The dollar figure is up to $1.7 trillion – with a ‘t’ – mostly from federal taxpayer dollars.

Here’s the story on it:  https://pipelineonline.ca/project-of-the-century-the-most-comprehensive-discussion-of-energy-transition-weve-seen-to-date/

This is the closest I’ve seen to what the federal Liberal government is trying to accomplish with the “energy transition.” Some of Natural Resources Minister Jonathan Wilkinson’s speech and discussion in Regina and Kipling at the end of June was almost word for word from this paper, before the paper was published.

This has huge implications for Saskatchewan and Alberta. Part of the interview focuses on how net zero by 2035 is impossible.

I spoke to the CEO and one of the authors on July 26. Here’s the in-depth interview. I’ll next be posting an analysis by Jim Warren on this, then likely one of my own.

Editor’s note: Pipeline Online has requested permission from the Public Policy Forum to publish the entire Project of the Century report, in serial form. That permission has not yet been granted, despite the Public Policy Forum’s webpage copyright notice stating, “The Public Policy Forum encourages interested parties to use, in whole or in part, its publications, data, images and other content to further dialogue on public policy in Canada. We require that the PPF is properly cited and acknowledged. In all instances, the PPF would like to be notified of the use of its publications and data.”  

They won’t give me a straight answer as to why they won’t let me publish it, when that is clearly their policy. Wonder why that is?

Update Aug. 8, 2023, 10:30 a.m. Since Pipeline Online made the above request, Public Policy Forum has updated its copyright notice. It now states, “Copyright – The Public Policy Forum retains copyright of our publications. For permission to publish a report excerpt, please contact us at: ppforum@ppforum.ca

Again, wind power in Alberta drops to 0.8% capacity, three days after province puts brakes on development

Sunday morning, Alberta’s wind generation dropped to 0.8 per cent, again. It’s actually around 2.5% at noon on Monday, but I don’t think I’m going to write that story. It was at similar levels on Saturday, too, so three days in a row, if you’re counting. On Thursday, the Alberta government put a six month pause on approvals for new wind and solar projects. There are still plenty in the works already, but does anyone think there’s finally a realization at the highest level these things don’t actually work?

Also, if anyone here has seen any other media reporting on this (wind power collapsing, again), I would love to see links in the comments. As far as I’ve seen, I’m the only media doing so in Western Canada.

Math on how Saskatchewan can grow a multi-billion dollar lithium industry

I’ve been talking for a while now about how lithium has to potential to become a multi-billion industry in Saskatchewan in a few years. Here’s a big chunk of how: Lithium in SK, Part 19: Grounded Lithium’s Kindersley project could cost $447 million to build, but bring in $350 million per year

Also, Brian Zinchuk on Gormley. Up for discussion this month: current oil prices and drilling activity, TC Energy spinning off the Keystone Pipeline system, Public Policy Forum’s paper on doubling the electrical grid, vilification of the oil sector.

And about those two billion trees

 

TC Energy is dumping Keystone Pipeline in spinoff

Keystone XL pipe, in 2011, that was never used. Photo by Brian Zinchuk

 

TC Energy, which I still think of as TranCanada, from back when I built pipelines for them, is spinning off its oil pipelines, which is principally the Keystone system.

I was searching for the best metaphor. “Like hot garbage,” kept coming to mind. I settled on dumping an ex-wife. My column on this: TC Energy dumping Keystone Pipeline like a despised, soon-to-be-ex-wife. The Keystone name is so verboten, it is barely mentioned in the press release or slide deck.

This is entirely because the anti-pipeline, anti-oil movement won on Keystone XL and Energy East. Can’tada and BANANAS USA won, and this is the result. (Build Absolutely Nothing Anywhere Near Anyone, Seriously, U Stup1d A@#$#@#)

About those electric tractors the minister was talking of…

This scythe is probably around 90 years old. Still works. Photo by Brian Zinchuk

A few minutes with a 90 year old scythe reminded me why diesel won’t be so easily replaced with electricity on the farm. This stems from a question federal Minister of Natural Resources Jonathan Wilkinson was asked while at Kipling, Saskatchewan, on June 29. While there he announced a $50 million federal contribution to a wind project tied with a local First Nation. (Is that an “inefficient subsidy” for wind? The morning before, wind in Alberta flatlined, again.)

Who’s the real villain here?

Steven Guilbeault’s most recent announcement villainizing oil and gas. Twitter

Federal government’s latest villainization of oil and gas: ‘Phasing out inefficient fossil fuel subsidies.’ Isn’t it curious how Steven Guilbeault decided not to make the announcement in Calgary, say at the Calgary Petroleum Club? Wonder why?

And, across the pond, Greta just won’t stop. Now fighting fossil fuels is “self defence.”

Something’s not right here with this Greenland core

Camp Century was ice free a lot more recently than was previously thought. Google Earth

So back when the US military was trying to make an ice base like the Planet Hoth from Empire Strikes Back (really happened, 20 years before the movie), they drilled an ice core and hit paydirt. Someone finally got around to looking at that dirt, and it has some startling revelations about the Greenland ice sheet. And when you add that up with what CO2 levels were, something does not jive. And then the mental gymnastics by the media and researches around this are even more entertaining.

Perhaps the science isn’t settled, after all?

Nice story about innocent kid shows some people are full of hate

So on Saturday morning, Premier Scott Moe’s social media team posted this Pipeline Online story on a young Estevan kid who launched an ice cream bike business at the age of 11. She had the help of her oilfield business-owning dad. A nice, feel good story about an innocent little girl and her ice cream bike.

And this is the sort of reaction people full of hate tweeted in response:

https://twitter.com/SaskaRocks/status/1682787028012810240?s=20

Unbelievable.

 

Project of the Century?

There was a very significant think tank report issued by the Public Policy Forum think tank on July 19. I was up until 2 am reading it, because it’s that significant. It’s called Project of the Century. It’s about this whole net zero path and doubling the grid. While I do not agree with much of it, it is the most comprehensive discussion paper I’ve seen on energy transition to date. I’m seeking permission to serialize it and republish all of it, but hitting some roadblocks. Their stated policy is “The Public Policy Forum encourages interested parties to use, in whole or in part, its publications, data, images and other content to further dialogue on public policy in Canada. We require that the PPF is properly cited and acknowledged. In all instances, the PPF would like to be notified of the use of its publications and data.” But when I asked about serializing it and publishing the entire report, I was told no, they do not give permission.

We’ll see what next week brings.

However, the report got significant attention from the government of Alberta.

Danielle Smith critical of $1.7 trillion (with a “t”) cost to build out net zero grid, responding to Public Policy Forum report

Also, supposed fossil fuel subsidies are in the headlines, with the feds saying they are going to get rid of them. I’m not really sure what subsidies they’re talking about, and neither are the Conservatives.  Conservative energy critic Shannon Stubbs targets federal plan to end subsidies for fossil fuel

 

How about more carbon capture?

That’s a whole lot of PhD students at Boundary Dam. Photo by Brian Zinchuk

Open letter: CCS is needed and ready to address climate change. This is from the Regina-based International CCS Knowledge Centre.

In response to some of the comments yesterday – carbon capture, as practiced in Saskatchewan, actually has a substantial benefit besides whatever climate issues one might be concerned about. The Weyburn Unit, one of the largest and most prolific oil plays in this country, has been in operation for 65 years. If it had no CO2 injection, it would probably be producing around 6,000 barrels per day. It’s currently doing around 24,000 as a direct result of CO2-enhanced oil recovery. That’s a gain of around 18,000 bpd. At $75/bbl., that’s about $1.3 million per day in gross revenue. It means hundreds of jobs in Weyburn, including my daughter, who started working as a heavy duty mechanic apprentice for an oilfield service company which has been working in the Unit for 62 years. If the CO2 continues to flow, that oilfield is expected to continue on likely for her entire career, if she stays there.

This can be applied on a much broader scale, dramatically extending the life of any oilfield it is applied to. CO2 increases recovery factors from around 20% to 40%+.

Just pumping CO2 into the ground – that’s another story.

Those carbon capture people keep coming back to Saskatchewan

That’s a whole lot of PhD students at Boundary Dam. Photo by Brian Zinchuk

Why? Because we are the leaders, worldwide. Every second year the IEAGHG summer school returns to Regina and Estevan, because we’ve got the most significant, commercial-scale carbon capture facility on a coal plant in the world, and we’ve learned a lot from it. That’s from the general manager of the IEAGHG.

Say what you want about carbon capture and storage, but Saskatchewan’s a big deal in this field.

I also asked him about when the glaciers covered Canada, and it wasn’t my SUV or the two coal fire power plants near my house that caused them to melt.

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