It’s starting to get cold out. The sun was down and Alberta’s wind power generation fell to next to nothing last night – less than half a per cent capacity.
Meanwhile in Saskatchewan, we’ve had several days of minimal wind power generation.
In other news, they’ve started to bring in floating accommodations for the staff to build the Woodfibre LNG facility.
And Precision Drilling meets debt reduction goal, on track to repay $500 million by 2025.
It wasn’t that long ago North Dakota was the second-largest oil producing state. New Mexico has since eclipsed them, and the money is rolling in. What to do, what to do? (Gee, what could we do with more oil production?
Meanwhile, German farmers aren’t taking too kindly to carbon taxes on diesel. But how are they supposed to save the planet and feed the people, too?
Saskatchewan’s Year in Energy: Premier Scott Moe, 2023: Full Interview
If you didn’t have a chance to see this interview posted in four pieces before, here is the full year-end interview between Premier Scott Moe and Pipeline Online editor and owner Brian Zinchuk
Also, Premier Scott Moe’s social media folks posted the Pipeline Online story about the carbon tax on Saturday:
Saskatchewan families can say so long to paying the carbon tax on home heating beginning on Monday!https://t.co/y2ZC7fLaSN
— Scott Moe (@PremierScottMoe) December 30, 2023
That bill there is directly from my father’s Jan. 2023 bill, when the carbon tax was still $50 per tonne. In April, it’ll be $80 a tonne. Without getting into too much detail, the shop that was connect to his natural gas is no longer. Thank God.
It was rather entertaining to read some of the comments, like suggesting my 80-year-old father should pay for upgrading the heating on his home (with only his meager CPP and OAS). Because every 80 year old will see a return in 10 years on such an investment. Certainly.
Another suggested he must be in a high income bracket – nothing could be further from the truth. Or that Trudeau’s climate action cheques must be enough to compensate.
True believers, those.
Anyhow, happy new year, everyone! And if you live in Saskatchewan and have SaskEnergy or SaskPower for home heating, happy no more carbon tax, on that, at least, year!
There are some days I think I’m kinda smart. But you get into a room, virtual or otherwise, with an Adam Waterman or a few others, and you realize how dumb you really are. Here’s what I mean.
Patchwork Podcast: Year-end roundup with Adam Waterman, Brian Zinchuk, Tracy Klotz and Kurt Price
If you don’t regularly watch Peter Zeihan, you should. He posted this on Christmas Day.
Weekend Watch: Why Venezuela is Preparing to Conquer Guyana
This video from YouTube channel RealLifeLore is the best explanation yet for why Venezuela is preparing to Conquer Guyana.
What’s really interesting are the North Dakota and Alberta/Canadian connections. As Venezuelan heavy crude production soared, US Gulf Coast refineries tooled up to handle it. But as their government essentially destroyed their economy, combined with US sanctions, the Canadian oilsands, and maybe, too, the Lloydminster region, benefitted by replacing that oil with our own..
It wasn’t that long ago, Crescent Point was pouring nearly all its capital budget into Saskatchewan, often employing over 20 drilling rigs in this province alone, and one in Alberta. My, how times have changed.
Its revised five year plan doesn’t even mention Saskatchewan by name.
The company has historically shown a pattern before it sells off an asset. It stops all drilling in that area months before a sale is announced. When I took Saskatchewan’s Minister of Energy for a tour west of Estevan, there wasn’t one rig drilling west of Estevan all the way to the Shaunavon area. When the photo above was taken in February, 2018, the company was running about 10 rigs in one township alone west of Estevan.
This is a key reason why I asked some hard questions of Premier Scott Moe about the lack of drilling activity in Part 2 of my year end interview with him (posted yesterday)
EDIT: Noting the lack of comments, let me provide some context: An enormous portion of Saskatchewan’s prosperity over the last 15 years, including its transition from a have-not to a have province, could be contributed to Crescent Point’s actions from 2007-2020. In 2008, they spent about a billion on land sales alone, then many, many more billions in the subsequent years developing that land through intense drilling efforts. For a while around 2012-ish they were Saskatchewan’s largest oil producer. Through a series of something like 30 mergers and acquisitions, the company built up a huge land base in this province, principally in southeast Saskatchewan. For several years, they were the top drilling oil producer in all of Canada, often employing more rigs than No. 2 and 3 combined. And usually all but one of those rigs were working in this province.
Now that is dramatically diminished. They’re milking Saskatchewan but spending substantially less here. I won’t say minimal, but it is a huge, huge, difference. So when they’ve found a new lover, as it were, in Alberta’s Duvernay and Montney plays, that might be good for them, but not so much for us left out here in the frozen barren wasteland of southeast Saskatchewan.
Get it now?
The old bumper sticker used to say something like, “Lord, please grant me another oil boom, and I promise not to piss it away this time.”
The "one more oil boom" bumper sticker is back. #Alberta pic.twitter.com/PgAcALrAgr
— Justin Giovannetti (@justinCgio) September 20, 2016
Well, oil prices were up in 2023, but oil drilling in Saskatchewan certainly didn’t reflect that. So Pipeline Online asked Premier Scott Moe what Saskatchewan is going to do about it.
Saskatchewan’s Year in Energy: Premier Scott Moe, 2023: Part 2 Oil Drilling, or Lack Thereof
Across the border to the west, The last coal-fired power station in Alberta will soon be out of coal. A few weeks ago, a notice posted to the the Alberta Electric System Operator website provided an update on its conversion to natural gas.
The end of coal-fired power in Alberta is nigh
Also, from Canadian Press:
Regulator denied Trans Mountain variance request due to pipeline safety concerns
And this one is a doozy. This is the Liberal government trying to cement into place carbon pricing so that even if the government changes, nothing can be done about it.
Feds sign first carbon contract for difference with Calgary-based Entropy
Energy, and the “energy transition” being forced upon Canadians by the federal government, is becoming the dominant story, affecting all our lives and everything we do. In his year-end interview with Saskatchewan Premier Scott Moe, Pipeline Online dives deep into the biggest energy issues of the past year.
This is Part 1: Fighting the Feds.
Part 2 will focus on addressing low oil drilling activity, despite decent oil prices.
Part 3 discusses the Clean Electricity Regulations and their impact, and widespread adoption of nuclear power.
Part 4 talks about lithium and helium development, and ends with Christmas greetings.
“We reached a historic consensus to move away from fossil fuels in energy systems,” Guilbeault’s statement on the conclusion of COP28, verbatim.
And the Canadian Press version:
Guilbeault hails ‘monumental’ COP28 deal, others warn of ‘dangerous distractions’
Also:
COP28 Agreement Signals “Beginning of the End” of the Fossil Fuel Era: the verbatim press release
And the conclusion from yesterday’s op-ed:
Op-Ed: Deidra Garyk: The Impact of ESG on the Energy Sector, Part 2
And since it’s the Christmas season, and Die Hard IS a Christmas movie, here’s a little Hans Gruber. Notice any resemblance to anyone? And if you don’t think Die Hard is a Christmas movie, fight me! Yippee Kai Yay, …
My thoughts on the current situation at #COP28, and why we must deliver on a solid agreement. pic.twitter.com/Uq0U4mfabA
— Steven Guilbeault (@s_guilbeault) December 12, 2023
Like or hate it, believe it’s a passing fad or the wave of the future. #ESG came out of nowhere about four years ago and now is at the forefront of concern for almost every larger business in the energy sector, and beyond. This Op-Ed by Deidra Garyk studies the Impact of ESG on the Energy Sector, Part 1. Watch for Part 2 tomorrow.
And along those lines, the Coastal GasLink project was an ESG nightmare, with protests across the country. This Canadian Press story says Police violated protesters’ rights in Wet’suwet’en pipeline blockades, Amnesty says
Also, oil prices are plummeting. This is not good, here, there or, apparently, in New Mexico
No. 2 oil-producing US state braces for possible end to income bonanza in New Mexico
Pipeline Online columnist Brian Crossman hits it out of the park again:
Brian Crossman: Climate hysteria, teachers, kids and the end of the world
Also, you think anyone noticed prices going up? Wonder why? From Canadian Press:
Tories have ‘successfully’ scapegoated carbon price in affordability crisis: Trudeau
Feds “focused on targeting the shutdown of a complete industry, regardless of whether they’re going to meet their emissions targets or not,” says Saskatchewan Premier Moe in Dubai
Pipeline Online speaks with Premier Scott Moe at conclusion of Dubai COP28 trip. (Another reporter asked questions, too, like do you believe the planet is warming…?
20 of 42 solar facilities, 30 of 44 wind facilities in Alberta produce no power at noon on Friday
Canada introduces framework to cap greenhouse gas pollution from oil and gas sector: verbatim
From Canadian Press:
Cap on greenhouse gas emissions singles out Alberta, Premier Smith says
Oil and gas sector warns emissions cap could lead to production curtailments
There’s only eight rigs drilling for oil in southeast Saskatchewan right now. A few years ago, that was 30, and before that, 50 or 60. Everyone I ask tells me that no one wants to invest in Canada with the current federal government. This seems to be proof of that.
Unions? What unions? The “Just Transition” legislation talks about unions in the oilpatch.
The problem is, except for refining, oil sands and big inch pipeline construction, unions are all but non-existent in the oilpatch. But hey, the legislation also includes five year plans, with the exact implications of what that means. Total transformation of the economy.
If only we had completed some LNG terminals by now.
Also, why are hardly any drilling rigs working in Saskatchewan?
Federated Co-op Ltd. and AGT Foods hold open house on hydrogenated renewable diesel refinery and canola crush plant to be located on the north end of Regina, adjacent to the oil refinery.
Conservative Natural Resources Critic Shannon Stubbs, Part 2: Is the Impacts Assessment Act Bill C-69 really dead?
Pipeline Online did In depth interview with the woman at the centre of the carbon tax storm, Conservative Natural Resources Critic Shannon Stubbs. This is part 1.
Also, hope for rising oil prices to lead to an increase in activity were dashed, so one of Saskatchewan’s serial entrepreneurs relocated one of his operations, based in Regina, to North Dakota, instead. Anyone care to guess why Canada’s oilpatch didn’t see an uptick in activity, and does it rhyme with “Doh?”
If you weren’t paying attention, they’re going through the floor in recent days.