Canadian Energy Weekly Round-Up: October 5, 2020
Here are the top news stories covering Canada’s energy landscape:
Company Behind Keystone XL Inks Deal, Indigenous Groups Gain Stake
TC Energy, the Alberta-based energy company behind the Keystone XL project, announced it had reached an agreement with an Indigenous interest group representing communities in Alberta and Saskatchewan. The memorandum hopes to give Indigenous communities a chance to pursue an ownership interest in the Keystone XL pipeline project.
In a statement to The Canadian Press, TC Energy President Richard Prior spoke optimistically on the memo, stating it is a first for both groups, and that this is a step in the right direction for the future of both the energy industry and Indigenous communities:
“This MOU, which is one of the first of its kind for TC Energy with Indigenous communities, is a reflection of our commitment to working together to ensure Indigenous groups share the benefits of the Keystone XL Pipeline over the long-term as a valuable partner.”
Alberta Premier Jason Kenney also issued a statement, speaking positively on the potential for both industry and the Indigenous community to prosper together and support the region:
“This MOU affirms the shared importance Indigenous people and Alberta’s government place on projects such as Keystone XL, which will bring the jobs and steady economic benefits to lift more people onto solid financial ground — now and for years to come.”
In March, TC Energy approved the Keystone XL project for US$8 billion, the project aims to transport 830,000 barrels per day to the U.S.
Another Report Published Criticizing Proposed Clean Fuel Standard
This week, another scathing report on the Canadian federal government’s Clean Fuel Standard was published. The new in-depth study, this time from Canadians for Affordable Energy, criticizes the proposed regulations for potentially creating more environmental challenges rather than opportunities, among other things.
Dan McTeague, a policy expert with Canadians for Affordable Energy, says the name of the proposed tax is ironic, as the name does not imply what the reality of what the regulations will do for the environment:
“The problems of the Clean Fuel Standard (CFS) are truly represented in its name, which misleadingly suggests that the policy will deliver clean air. But Canada already has remarkably high clean air standards which are rarely violated. As the report points out, a more appropriate name for the regulation would be “Reduced CO2 Intensity Standard” as that is the true aim of the policy.”
The report also contains compelling details on the potential effects the CFS will have the economy and labor. Based on its research, the CFS will big a significant factor for the loss of approximately 30,000 jobs nationally, putting roughly $22 billion in capital investments at risk of exiting the country.
On top of what the regulations will not do for the economy and the environment, the report also suggests the proposed CFS will undermine any existing regulations intended to reduce greenhouse gas emissions.
While the report recognizes the CFS is intended to keep the federal government on track to meet its net-zero emissions goals, McTeague writes that political leaders are putting many household incomes at-risk, especially considering the effects of the COVID-19 pandemic:
“This year has been an especially tough one for Canadians. Millions were – and still are – out of work. Millions have been left isolated and alone without the support of their communities, schools, and extended families. Canadians are feeling the financial, social, and emotional costs of the COVID-19 pandemic lockdowns imposed by governments.”
Earlier this month, the Montreal Economic Institute (MEI) released similar findings, also stating many energy sector jobs will be at risk, in addition to the loss of capital investment, should the CFS become law.
For more Canadian energy news and setting the record straight on the day’s top stories about the oil and natural gas industry, visit Canadian Energy Network.