Energy

The cancellation of the Energy East pipeline project by TransCanada Corporation, citing delays caused by the regulatory process, newly lengthened and thickened by Ottawa, is emblematic of forces conspiring against rational energy and regulatory policy.

Opponents of oil pipelines, such as the Keystone XL pipeline from Alberta to the U.S. Gulf Coast, have arguably caused unnecessary harm to the environment, reduced public safety, and slowed the Canadian economy.

The environmentalist war on fossil fuels has opened a new front: a war on pipelines. For years, activists claimed the world was rapidly depleting its oil and natural gas supplies. The fracking revolution (horizontal drilling and hydraulic fracturing) obliterated that...

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Trade with Mercosur: Opportunities for Canada

In November 2018, Canada and Mercosur opened negotiations for a free trade agreement. The Mercosur, composed of Argentina, Brazil, Paraguay and Uruguay (Venezuela is a suspended member from 2016), represents a bloc representing a GDP of over $3 trillion and a...

Election – No Time to Discuss Serious Issues

The former head of the Bank of Canada indicated that Canadians have to engage in a tough round of discussions about rising health care costs.

Canadians need to have a discussion about rapidly rising health-care costs, and soon, said David Dodge, former head of the Bank of Canada. Just not now.

Long Term Energy Supply

A leading bank has predicted that the world will run short of oil by 2060.

HSBC does not mean to scare you in its latest report, but it does point out that we are facing a massive energy crunch. That’s because the bank is just not optimistic there is much oil left  in the world – in fact a mere 49 years of the black gold on current consumption levels.

While the article sounds scary, read a bit further into it and discover their finding is related to conventional supplies of oil.  If prices stay at current levels or higher, unconventional oil such as tight oil and oil sands becomes profitable.  Unfortunately, the article fails to mention how long those reserves will last.  I have a suspicion that if oil sands supply from Canada alone is added to the mix, the crunch point is put off well into the future.

Compelled Investment

Manitoba Hydro has indicated that Bi-Pole III is now estimated to cost $3.2 billion, which is up $1 billion from their original estimate.

The cost of new hydro dam construction is also experiencing significant cost inflation.  During recent PUB hearings, it was reported that the new Wuswatim dam will now cost $1.6 billion. That figure is nearly 80% above the initial budgeted cost of $900 million.  Power generated from the dam is now expect to cost between 9 and 10 cents to produce.

Food Versus Fuel is Passe

Over time, we have read a lot about the food-versus-fuel discussion including here at the Frontier Centre.

While I can agree that market distorting subsidies should be eliminated, I do not buy into the narrative that using agricultural production capacity to produce energy is inherently evil.

Soaring food inflation is the result of “immoral” policies in the United States which divert crops for use in the production of biofuels instead of food, according to the chairman of one of the world’s largest food companies.