NP View: The Liberal plan to smother the energy industry – National Post

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Emissions targets ignore what is happening in the world

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The Liberals are either governing in a fantasy universe or they are being deliberately reckless. How else do you explain that, in the same week our European allies were preparing to ration energy, being held hostage as they are by a murderous tyrant wreaking havoc in Ukraine, our government announced a dramatic acceleration of its plan to hobble the oil and gas industry?

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Germany was foolish to phase out nuclear power and coal, especially as quickly as it had planned, leaving it at the mercy of unreliable wind energy and natural gas imports from Russia. Prime Minister Justin Trudeau and Environment Minister Steven Guilbeault refuse to learn any lessons from recent events. Theyve ignored the reality that our allies phasing out fossil fuels has done little to move their economies to green energy, and instead, Europe has helped fuel Russian President Vladimir Putins monstrous invasion of Ukraine. Given this self-imposed dependence, enacting a full oil and gas embargo on Russia is close to impossible.

No matter, our leaders evidently believe that is Europes problem. On Tuesday, Trudeau outlined targets to lower carbon emissions to between 40 and 45 per cent below 2005 levels by 2030. More specifically, the government is demanding, without saying how, the energy sector cut emissions by 42 per cent below 2019 levels.

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It is a goal Trudeau laid out while dismissing Canadas largest industry and pretending as if oil and gas companies dont already pay taxes and dont already face a slough of anti-energy policies.

With record profits, this is the moment for the oil and gas sector to invest in the sustainable future that will be good for business, good for communities and good for our future, the prime minister said.

Never mind that politicians have no business telling companies what to do with their profits. Increased corporate revenues also mean increased tax revenues. If the federal government wants to use the extra revenue it gains from the oil and gas sector during a boom period, then it is free to do so. Whats more, the federal governments carbon tax increased to $50 per tonne on Friday and will eventually reach $170.

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Its not enough for the Liberals to collect ever-increasing tax revenues, though they want to tell companies how to spend whats left.

Raising the carbon tax will do little more than make life more expensive for Canadians and divert oil and gas investment to less-regulated jurisdictions. If the carbon tax were truly as effective at curbing emissions as the government claims, why did it feel the need to outline a whole host of other regulatory measures to achieve the same goals? By creating the impression that Canadas regulatory regime and tax structure are constantly in flux, the government is missing the opportunity to balance emissions reduction with economic growth.

Focusing more on developing lower-emitting natural gas and preparing for a warmer future are better uses of government resources. Besides, the energy industry has long been improving its efficiency, suggesting existing provincial and federal incentives are working as intended. Between 2011 and 2018, for example, oil sands emissions per barrel declined by 22 per cent.

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Trying to dictate where companies invest, as the Trudeau Liberals want to do, shows this is less about capping emissions, and more about control. The fact that the government is mandating that new vehicles sold in Canada either be hybrids or fully electric by 2035 gives away the plot.

Trudeau also said Tuesday that, big oil lobbyists have had their time on the field, implying that greedy energy companies have got their way and the government is finally sticking up for the little guy. This, of course, doesnt square with policies brought in by the prime minister himself.

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This is the government that cancelled Northern Gateway and introduced cumbersome regulations that encouraged the cancellation of the Energy East pipeline. It is the government that made the approval process for any energy project one of endless consultation and politicization. And, of course, it is this government that brought in the carbon tax.

No big oil lobbyists think this has been a success. But having a capitalist bogeymen to blame is a good way to justify doing what you were already planning to do.

Trudeau went on: Now, its over to the workers and engineers who will build solutions. The only logical reaction is to ask: really? Would those be the same workers and engineers who will struggle to find meaningful work as oil and gas investment is driven further and further away? Those workers?

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It hardly needs to be said that the plan disproportionately singles out the West, and especially Alberta. Good jobs for regular people working with their hands and extracting wealth from Canadas bounty of natural resources has long been an embarrassment to the well-to-do Central-Canadian elite.

Ontario carmakers, on the other hand, will be fine, as they will be able to produce government-mandated electric vehicles. It wont matter whether they are economical to produce or to buy and maintain. Canadian consumers wont have a choice.

Energy prices have indeed been much higher lately, after several years of below-normal prices. It isnt reassuring that the federal government refuses to acknowledge why that is. If Canada, the United States and Europe hadnt been so committed to forcing their economies off of fossil fuels, there would be less global reliance on Russian energy. Unfortunately, that is a world that the Liberal government is obviously comfortable to live in.

National Post

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NP View: The Liberal plan to smother the energy industry - National Post