Page 5 - Newcom

Editorial
By James Menzies
Make it Make Sense
Canada will be left behind as
U.S. energy production soars
The sweeping election of Donald Trump south of the bor-
der promises to be a boon for U.S. domestic energy pro-
duction, while Canada continues to stymie its own, alien-
ating our allies and dragging our economy further into the abyss.
In early November, the feds issued draft regulations that
would cap greenhouse gas emissions from Canada’s oil and gas
sector to 35% below 2019 levels. The rules will do nothing to
curtail the consumption of natural gas globally, but instead will
force our allies to source gas from other producers – some of
which are far from friendly.
The U.S., by contrast, is already producing record volumes of
oil and natural gas. This, even before Trump’s campaign promise
to “Drill, baby, drill!”
Valerie Thomas, professor of industrial engineering with the
Georgia Institute of Technology, recently wrote “The U.S. is
producing more oil and natural gas today than ever before, and
far more than any other country…Under each of the three most
recent presidencies, Republican and Democratic alike, U.S. oil
and gas production was higher at the end of the administration’s
term than at the beginning.”
Why? Because the U.S. values economic growth and energy
security, noble concepts the Liberals seem to disdain, prefer-
ring instead to kill industry while artificially propping up GDP
through mass immigration.
Don’t be fooled by headline GDP numbers when our GDP per
capita has detached from that of the U.S. and is on the decline,
leaving Canadians feeling poorer.
If the Liberals’ cap on oil and gas production emissions is
allowed to advance, the economic repercussions will be disas-
trous. The Conference Board of Canada estimates the policy will
wipe out up to $1 trillion in GDP between 2030 and 2040, while
killing more than 150,000 jobs.
A study by Deloitte indicated Ontario would also lose 15,000
jobs and $2.3 billion from its economy by 2040, should the cap
proceed. It contends the Canadian economy would suffer an
economic loss equal to 1% of total GDP.
And for what? So we can pat ourselves on the back for being
good global citizens while the U.S. prospers with its “Drill, baby,
drill!” approach and our allies elsewhere in the world increasingly
turn to our enemies to satisfy their need for oil and gas?
Kenneth Green, senior fellow with the Fraser Institute, issued
a report that found even if Canada meets its targets in 2030
due to the federal cap, the emissions reduction would amount
to 0.004% of global emissions, “a reduction unlikely to have
any impact on the trajectory of the climate in any detectable
manner, or produce any related environmental, health or safety
benefits.”
“Clearly, the Trudeau government’s new proposed emissions
cap on the oil and gas sector will impose significant harms on
Canada’s economy, Canadian workers and our quality of life
– and hit Alberta with a wallop,” Green wrote. “And yet, as a
measure intended to avert harmful climate change, it’s purely
performative [like many of the government’s other GHG regu-
lations] and will generate too little emission reductions to have
any meaningful impact on the climate.”
Canada’s transportation sector accounts for a quarter of its
total greenhouse gas emissions. Ironically, one of the simplest
and most cost-effective ways to slash the emissions of the truck-
ing segment would be to encour-
“
 Natural gas isn’t
the enemy our
government will
tell you it is.”
age the transition from diesel to
natural gas.
The Transport Project, which
advocates for the use of natu-
ral gas in the transport sector,
reports that natural gas slashes
CO2 and GHG emissions by 17%
compared to diesel, or 582% when it’s produced from renewable
sources. Yes, renewable natural gas can provide a negative car-
bon output, when produced from methane that’s emitted from
dairy farms or landfill sites.
Natural gas isn’t the enemy our government will tell you it is.
Capping emissions from the segment as proposed will curtail
production, damage our economy, and make us poorer. It will
stall the transition from diesel to cleaner-burning natural gas,
while forcing technologies on industry – such as electric vehicles
– that aren’t yet ready.
Say what you want about Trump. But his promise to “Drill,
baby, drill!” will bring further prosperity and energy security to
the U.S. while Canada’s misguided energy policy will leave us
choking on its dust. TT
James Menzies is the editorial director of Today’s Trucking.
You can reach him at 416-557-9014 or james@newcom.ca.
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