RUSS: Will Carney Kill Canadian Energy Sector?

Will Mark Carney Seek To Kill The Canadian Energy Sector?

By Geoff Russ, Special to the National Citizens Coalition and the 'Energy Affordability Now' campaign

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Whether the next federal election will be held in May, October, or another time remains up in the air. What is not up in the air is the status of Mark Carney as the frontrunner in the Liberal leadership race to succeed Justin Trudeau and automatically become Canada’s unelected prime minister.

Carney, stage-managed by his team of hardline Trudeau loyalists, has said many slogans since the Liberal leadership race began, but very little has come in the way of policy pledges. For a man so committed to the green agenda, Carney has not given a clear answer when it comes to the essential question of energy policy, specifically oil and gas development.

A healthy and reliable energy sector is crucial to any advanced economy, whether it be for domestic grids or foreign exports. In Canada, no other energy source is as valuable to our standard of living or national security as petroleum products and their derivatives. 

If Canadians are to have a new leader, they deserve full transparency on this front.

The rate of inflation is flattening, but this is cold comfort for middle and working-class Canadians now shackled to the devalued loonie after years of irresponsible, debt-fuelled Liberal spending. In this climate, affordable energy is as important as affordable groceries, housing, and auto insurance.

As detailed last week, the impact of the expanded Trans Mountain pipeline provided welcome relief at gas stations by doubling flows of oil and freeing up supply backlogs formerly caused by constrained capacity at refineries.

The law of supply and demand remains as valid as ever.

Despite the clear advantages of abundant energy, the existing network of regulations and delays continues to handicap further energy development. The Impact Assessment Act (IAA), known by its classification as Bill C-69, or more infamously, the “No More Pipelines” bill, has added whole new layers to the maze of red tape for investors and builders.

Instead of doubling energy production, Ottawa has only doubled the power of the regulatory regime.

The IAA has only compounded the difficulties created by other roadblocks bolted down by the Trudeau government, such as the ban on oil tanker traffic in northern British Columbia. In effect, the ban killed the possibility of crude oil pipelines north of Burnaby, where the Trans Mountain pipeline presents the sole outlet for oil to the Pacific.

Will Carney double down on these obstacles, which are pillars of the degrowth agenda in Canada, or will he strive for a future of abundance and comfort for Canadians?

Even within the Liberal Party itself, voices are calling for boosting the oil and gas industry.

Premier Andrew Furey of Newfoundland and Labrador, a card-carrying Liberal, has championed the oil industry in his province, stating his government was “all-in” on the industry. 

If Carney becomes federal Liberal leader and prime minister, how will he treat Newfoundland and Labrador? His own resumé suggests that offshore oil drilling, such as that in the Atlantic provinces, will come under attack if he becomes the head of Canada’s government. 

While chair of Brookfield Asset Management, Carney moonlighted as advisor for Britain’s government and its National Wealth Fund, which itself has a heavy emphasis on “clean” energy. Just weeks after unveiling the National Wealth Fund, the new Labour government halted further oil development in the North Sea after years of Carney publicly speaking out against the expansion of operations there.

Coincidentally, the ink was barely dry on the documents used to swear in the Labour government when Brookfield acquired stakes in major offshore British wind farms. Carney was still serving in his position as Brookfield’s chair at the time. 

So, will Carney bring the same approach to Canada’s oil and gas sector? What is Brookfield’s interest in Canadian energy? 

This is not time for pie-in-the-sky green crusades dedicated to an agenda that is five years out of date. The changing economic landscape of North America and the damage wrought to the Canadian middle-class demands leadership that prioritizes affordability and a stronger economy. 

As many have pointed out, the Liberal Party does not deserve to govern Canada after a decade of overseeing the economic, fiscal, and moral decline of the country. They cannot be allowed to try and slither their way into another term.

If the man wants to be prime minister, Carney needs to be upfront about his vision and let Canadians judge him and his party at the ballot box. Do not underestimate the damage that can be wrought in a short time as prime minister, even if Carney only holds that position for a few weeks.

Geoff Russ is a policy manager in the resource sector and contributor to several national publications across Canada, the United States, and Australia. Read his work in the National Post, the Spectator Australia, and Modern Age.


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