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The Oil and Gas Emissions Cap Policy
Much ink has been spilt over the Liberals’ announced attempt to cap emissions from the oil and gas industry by 35% below 2019 levels by 2030
The oil and gas industry, along with the provincial regulators, have clearly responded that such a cap is a de facto ‘cut’ to current production levels.
The narrative from Environment and Climate Change Canada (ECCC) is a continuation of the ‘smokescreen’ approach to crippling Canada’s oil and gas industry, which is a hallmark of this Liberal government.
With contestable double-speak narratives like, “This is a cap on emissions, not production” and their rationale that the oil and gas industry needs to reinvest its ‘record profits’, it’s safe to say their perspective is skewed unrealistically.
The Consultation
‘The Government of Canada has engaged a broad range of partners and stakeholders on the oil and gas GHG pollution cap, including provinces and territories, Indigenous partners, industry, environmental groups, and Canadians.’
I give full credit to ‘consultation’. However, of 250 written submissions, how many came from the environmental groups? I agree that we should allow them their say – but as I’ve exposed at Parliamentary Committee hearings, many of these groups are heavily government-funded; have a pre-formed opinion on removing the oil and gas industry from Canada as quickly as possible; and typically lack practical experience and knowledge.
They are not accountable for their positions or outcomes. In other words – free riders – and well-compensated with your tax dollars.
The Government pays these third parties for their input, even when they have proven they are out of their depth.
Of the other set of stakeholder input, I haven’t found one that concurs with the path put forth by ECCC.
ECCC is a “passenger department” that thinks they work for the environmental groups.
Those ‘expert’ voices are much less equipped to comment on technological advancements than the organizations that are developing, advancing, and working with the technologies. And –getting good results for their efforts.
The Contradiction
Just three days after the emissions cap announcement, Canada’s Commissioner of the Environment and Sustainable Development (CESD) released five more environmental audits on the Liberal government’s approach to delivering environmental solutions The thrust of the reports is always the same.
In short, the Liberals’ policies and programs to reduce emissions are a complete failure –words in the wind, accomplishing no environmental outcomes.
The CESD’s Report on the ‘Canadian Net-Zero Accountability Act’ said:
‘Missing and inconsistent information, delays in launching important measures, and a lack of reliability in projections hindered the credibility of the plan’
- ‘Unreliable emissions reduction estimates
- Lack of value-for-money assessments of measures for emissions reductions
- Lack of transparency on emissions reductions and projections
Here’s a reality check:
‘The recent decreases to projected 2030 emissions were not due to climate actions taken by governments but were instead because of revisions to the data or methods used in modelling.’
The gist is:
This government’s narrative approach to greenhouse gas emissions is a complete failure!
- It doesn’t know what it is doing.
- It doesn’t know how to accomplish its goals.
- It doesn’t even know how to measure the outcomes it seeks.
Yet this Government is returning to the same ineffective strategies and consulting the same free rider organizations to draft new regulations.
When you’ve dug a hole this deep and found nothing but failure, it’s time to stop digging, not try to dig faster.
Most of us were struck by the words used by Environment Minister Steven Guilbeault in introducing the policy, when he said:
“Look around the world, no other major oil and gas producer is doing what we’re doing.”
Perhaps the best reply came from portfolio manager Eric Nuttall, who said,
“It behooves us to take a moment and ask, ‘Well, why is that?’ It’s economic idiocy.”
Ottawa’s argument that the cap will actually help the sector remain competitive globally as other economies decarbonize has been roundly dismissed in the oilpatch.
Michael Belenkie, chief executive of Advantage Energy Ltd. said,
“All we’re doing is we’re shutting ourselves down at our own expense and watching global emissions increase.”
A Path Forward
Effective policy requires justifying expenditures and balancing market innovation with regulations. The current approach has not been successful. Calgary energy economist Peter Tertzakian calls for a “carbon policy time-out” to reassess environmental and fiscal policies across all energy systems:
“The first step is to pause and take stock of all environmental and fiscal policies –federal and provincial – across every energy system. Figure out what is working and what isn’t.”
– Peter Tertzakian
Canada needs genuine environmental leadership, driven by innovation and practical solutions. The world looks to Canada for guidance, and it’s time to move beyond performative policies towards effective, transparent, and accountable measures.
Unfortunately, the latest announcement from Canada’s Minister of the Environment is merely performative. He isn’t in his position to deliver real environmental results; his agenda is different. He is simply appeasing special interests that are well-funded by various government sources, acting as their advocate and using your tax dollars to support them.
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