Sask drilling rig report: Rigs working on oil, potash, helium and lithium
The reality is that to get anywhere close to the oil production numbers Premier Scott Moe would like to see, an increase from 454,000 barrels per day to 600,000, we’d need to double, and likely triple the current number of rigs drilling for oil, which is 32. And even then, that would still be fewer rigs than we had going in 2013.
What a Sask Party win means for energy – seeking to hit 600,000 bpd, and eventually 1 million; nuclear power development, critical minerals.
Does this mean drill, baby, drill? For oil, lithium, and helium – to reach these goals, absolutely.
Also:
For the past decade, Quebec’s political parties have been arguing over who hates oil and Western conservatives the most along with which party can claim bragging rights for being the best at extorting benefits from the rest of Canada. Jim Warren hits it out of the park, again.
No big war, prices drop:
Oil prices fall as reality of weak global demand overtakes risk of wider war in Middle East
Once you cut gas taxes, you’ll never be able to bring them back. Dumb idea if we want to keep roads.
Ontario government moves to extend 5.7 cent gas tax cut to June 2025
You can’t make this stuff up.
The Saskatchewan Green Party proposes to “Make Green Jobs the future of Saskatchewan’s economy by transitioning away from fossil fuels,” while financing its extensive socialist policy platform by modelling Norway which applies “a whopping 78 percent total tax” on oil and gas revenues.
Notably, it includes five pages discussing the Greens opposition to small modular reactors. And the policy document closes by saying on the last page, “How do we pay for it? The Saskatchewan Green Party is dedicated to building a prosperous future for our province. It is time to raise royalty rates in the oil & gas sector to levels that truly reflect the value of our resources. We would use Norway as an example. Norway has a 51 percent tax on petroleum-related income, on top of the 27 percent income tax. That amounts to a whopping 78 percent total tax. This is put into a fund to benefit all citizens.”
That page does not list any other major revenue source, or indeed any revenue source at all, other than heavily taxing oil and gas, the same oil and gas earlier in the document the party promises to transition away from. If the party does succeed in “transitioning away from fossil fuels,” (Page 17) it offers no other source of revenue on the “How do we pay for it?” page (Page 61).
Election 2024: All-of-the-above energy strategy, no changes to royalties: New Democratic Party
This is the third in a series of in-depth interviews with the parties vying for the Saskatchewan election. In it, NDP Energy Critic Aleana Young speaks about the NDP’s all-of-the-above energy strategy.
The greatest threat to nuclear development is not technological or even financial – it’s change in government. This was evident with the Site C Dam in BC, where a new NDP government pumped the brakes, but then ultimately went ahead with it. The NDP in Saskatchewan continue to support nuclear power development, but “we have to get it right.”
As I’ve done with the other parties, I reproduced everything I could find in the party platform related to energy. Well, the terms “oil” “natural gas” “potash” “critical minerals” “SMR” “nuclear” or “electricity” are not referenced within the document. But “healthcare” comes up 35 times.
Friday will be the Buffalo Party. So far, I have not heard from the Greens, PCs or Progressives. Wonder why? Is anyone else writing 3200 word stories on their energy policies?
On a side note, I attended a three hour long Estevan city council/mayor town hall this evening. It took 2 hours and 25 minutes before anyone made any serious comments about coal. That was right before I got my chance to ask about dealing with the impending eventual shut down of coal-fired power generation, but also preparing the city for nuclear power. Amazingly, about half of the 13 people on stage really had no substantive answer on that front, and several had no clue or hadn’t thought of it. You would think that would be the most important issue facing this city – much more important than sidewalks or boulevard flowers (which got more discussion up until that point than coal or nuclear). Especially since the nuclear built out will be the most costly infrastructure project in Saskatchewan history to date. (If I attend a forum like this, you can be damned sure I’m going to ask the toughest questions.)
Toronto takes step toward ban on misleading fossil fuel ads, following TTC move
Because of course they are. From the Canadian Press
Also:
Alberta government proposing additional restrictions on wind and solar energy
Pipeline Online is attempting to do in-depth interview on energy policy with each of the parties involved in the Saskatchewan 2024 general election. First up: Saskatchewan United Party:
Election 2024: Grow oil production to 500,000 bpd, cut PST by half: Saskatchewan United Party
Brian Zinchuk: Too much wind, not enough wind? What’s going on in Alberta?
Weird things have been happening in Alberta’s electrical grid over the last week. Interties to BC and Montana are down due to maintenance. Many hours have seen zero dollars paid for power. Wind and solar have been in such surplus numerous facilities have shut down at times to clear the glut. The grid frequency has had numerous variances, including “due to sudden variability of renewables.” Is the Alberta grid pushing the limits of how much wind and solar it can take?
Multilateral well program proving a big win in Lloydminster area and SE Sask
My intention coming out of the Lloydminster Heavy Oil Show last week was to see if the multilateral well program, announced in last spring’s budget, was a success and making an impact. After all, it was the biggest change in the royalty structure in decades. Well, it was. Here’s my story on that.
This is a big deal for the Saskatchewan oilpatch. And remember, oil and gas is the No. 1 contributor to Saskatchewan’s GDP, surpassing even agriculture, if you can believe it.
Bill C-59 has not gone away. Pipeline Online editor Brian Zinchuk and energy advocate Deidra Garyk appear on the Patchwork Podcast to discuss its implications on free speech and Canadian society. This occurred at the Lloydminster Heavy Oil Show on Sept. 12.
Meanwhile, south of the border:
Federal judge temporarily blocks Biden administration rule to limit flaring of gas at oil wells
Also, getting really into the weeds of overseas gas production:
Irish company planning to produce jet fuel in Goldboro, N.S., at former LNG site
Note: Goldboro was one the leading candidates for a Canadian East Coast liquefied natural gas export facility, the type German Chancellor Olaf Scholz basically begged Canada for. However, Prime Minister Justin Trudeau said there was “no business case,” for Canadian LNG in this context.
But apparently cutting trees to make “sustainable aviation fuel” is quite alright.
Also:
Weekend Watch: Why all eyes are on Arkansas Lithium. There are numerous parallels to what’s happening in Saskatchewan lithium
With the Lloydminster Heavy Oil Show coming up next week on Sept. 11-12, it’s apt to point out there’s more drilling activity happening just outside of Lloyd than there has been in many years.
These surge of new drilling just within spitting distance of the upgrader is a new development. We haven’t seen that level of activity in that immediate area in probably 10 years, maybe more. I don’t know if it is directly related to the multilateral drilling program, but I suspect it is. I hope to find out when I’m up in Lloyd.
Also, I’ll be on the Evan Bray Show on CJME/CKOM at 10 a.m. from in studio on Wednesday. I hope to ask callers what energy issues they’d like to see addressed in the upcoming election, and talking about the Lloydminster developments.
The Houthis keep trying to blow up a loaded supertanker, and no one’s stopping them
The Houthis have, on multiple occasions now, set explosives on a fully loaded oil supertanker in the Red Sea. Their initial attack had the crew abandon ship, and since then they’ve repeatedly boarded it, set explosives, blew it up, while they filmed the whole thing and posted it online! And the production quality is really good – drone footage, onboard. You’d think it was a professional production!
For reference, the Exxon Valdez spilled 240,000 barrels of crude. The Sounion is carrying a million barrels.
Two podcasts for you on Labour Day:
Energy Realities Podcast: The Real Climate Claptrapping – Climate Alarm!
Irina Slav, Tammy Nemeth, and Stu Turley will be live talking about the most critical threat to our world, democracy, and our finances, “Climate Alarm.” or “Claptrapping”. Apparently if you question climate change, you’re no longer a denier, but producing climate claptrap.
Nemeth Report: Brad Hayes on energy literacy
Dr. Tammy Nemeth interviewed Dr. Brad Hayes, a sedimentary geologist, on energy literacy. I signed up for his course last year but simply didn’t have time to follow through on it. I will get to it one of these days.
It’s not often an oil company CEO sells his company to run for provincial politics, becoming the leader of an upstart party in the process. But that’s exactly what Jon Hromek has done. And as someone coming from industry, his thoughts on energy transition, CO2 and coal differ from a lot of the other politicians in Saskatchewan, or for that matter, Canada.
Drill, baby, drill: Trump promises energy dominance, but lower energy prices
The last time, that didn’t work out so well for Saskatchewan oil and gas. The depths of the seven year oil downturn which devastated the Saskatchewan oil and gas industry included all four of the Trump years the last time around. While oil low prices benefited consumers and large portions of the economy, they also had a significant impact on Saskatchewan oil companies and particularly oilfield service companies. Activity levels, vendor rates, employment and employee remuneration were all deeply affected by the low energy price policies.
This is NOT an endorsement of Biden by any means, but simply a reflection on what did happen during the last Trump presidency.
And, as promised yesterday, more on those Clean Electricity Regulations that mean even MORE wind and solar, and no more coal or natural gas without carbon capture.
Clean Electricity Regulations: Cenovus Energy (Detailed, with recommendations)
And maybe Wilkinson thinks aforementioned wind turbines will power all those electric heat pumps, when it’s cold, and when it’s hot. What am I saying? Of course he does.
Liberal energy minister promises ban on oil furnaces for new builds as soon as 2028
Also:
TC Energy’s US$15B Keystone XL claim thrown out by trade tribunal
In the continuing Clean Electricity Regulations series, we have the first of two stories from Cenovus, Saskatchewan’s largest oil producer:
Clean Electricity Regulations: Cenovus Energy (Overview) – a much more detailed piece will be published tomorrow.
“In Saskatchewan specifically, we are concerned that the tight timelines required to adhere to the CER will risk power shortages and grid instability.” – Cenovus
Also:
Lithium land sale brings in just under $6 million as SE Sask area grows
and:
From Associated Press, Trump wants to cut taxes and pump more oil
It turns out developing more wind in Manitoba is a big deal for Manitoba Hydro – CEO sacking sorta big deal.
Alberta to relax rule on buying oil, gas wells if municipal taxes unpaid
The Lloydminster Heavy Oil Show is coming up in just under two months. I’ll be there if anyone would like to say hello. I’m identifiable by the fat guy with all the cameras sitting at the front.
And since everyone is talking about the Trump assimilation attempt, I have to say, Peter Zeihan’s video about it this morning is the worst I’ve ever seen from him – and I’m generally a huge fan of his work. His disappointment that it wasn’t successful shows through. Maybe it’s because he’s been saying Biden in a landslide – well, that’s not going to happen now.
He even has an economist agreeing with him!
Federal Minister of Environment and Climate Change Steven Guilbeault takes to X to explain how pricing on carbon dioxide emissions fixes everything from global warming to health to your pocketbook.
He seems to think there’s a lot of “misinformation about carbon pricing.”
And on that carbon front:
It looks like something’s up. Hearing cancelled for Saskatchewan’s bid to stop federal collection of carbon money
Also:
Frontier Centre for Public Policy: Is hydrogen really the solution?
Jim Warren: In defense of populism: it’s a timeless prairie tradition
Also:
Brian Zinchuk on Evan Bray: C-59 and free speech, Oil and Gas 20 and 30, and more
And:
Ugg. The Canadian Press writes about oil and gas haters trying another way to financially choke the oil and gas industry Climate advocacy group calls out property insurers for fossil fuel support.
Climate advocacy group calls out property insurers for fossil fuel support
