“Again, this is only a function of a flawed policy discussion that we have had in this nation over the course of the last decade or better, where we see those very, in all too often, those very same individuals that are promoting export tariffs on a product like oil, 10 years ago, were the very same individuals standing up and saying we should not build important energy security infrastructure like the Energy East Pipeline.” – Scott Moe
Think about this: The top three contributors to Saskatchewan’s GDP is oil, potash and ag, with oil and potash vying for top spot (usually it’s oil, but potash might beat it this year). If we put an export tax on any of those, we’re shooting ourself through the foot, floor, and neighbour’s ceiling in the apartment below us.
Today Pipeline Online is publishing in-depth stories from the NDP and Sask Party on last week’s steel tariffs from President Donald Trump. Both parties produced remarkably similar calls to action. Steel is critical for oil infrastructure and production, especially with regards to pipelines. Most of the major pipelines built in Western Canada saw their pipe come out of Regina, but it’s been some time since that mill has produced any pipeline pipe. And now, steel production itself is under threat of tariffs.
The photos you’ll see in the stories are from an exclusive tour I took of the mill in 2009. It was nearly impossible for me to get that access back then, so I haven’t asked for it since. And really, not much will have changed, other than the fact the pipe-making side of the mill has been dormant for a long time now. I’m hearing that workers on the pipe side are or have scattered to the winds. While I’m not certain of that, if true means institutional knowledge to make that pipe is being lost by the day. It’s a live question if we could bring it back into full production of a quality pipe product in a reasonable time?
Consider this – both the Alberta and Saskatchewan governments have made it policy to seek to double their respective oil production. To do so means we would need to effectively double the entire network of Enbridge, Keystone, Express, and Trans Mountain Pipelines. And that’s only for oil – never mind gas. There’s nowhere else in western Canada that can produce that pipe of that scale. We would need to run EVRAZ 24/7/365 at max capacity to accomplish that, and it would likely take decades. We can’t afford to lose it. Because if we do, we’d probably need to bring in pipe from China or possibly Mexico. Seriously.
Heads up: the guest for the Pipeline Online Podcast on Tuesday at 1 p.m. CST will be former Alberta Energy Minister Sonya Savage. You can watch on X, LinkedIn or Facebook.