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Calgary & Alberta Economy

It's great that governments in Canada are rethinking their previous opposition to pipelines, but unfortunately it appears that pipeline companies like Enbridge aren't keen on dusting off their pipeline plans for the time being.
 
It's great that governments in Canada are rethinking their previous opposition to pipelines, but unfortunately it appears that pipeline companies like Enbridge aren't keen on dusting off their pipeline plans for the time being.
Companies won't act on these "statements' by politicians. The US threat could go as fast as it came, no company would put actual investments unless there is realistic change to federal regulations. I wouldn't put much hope in Quebec, unless there is meaningful change in equalization. Why support pipelines when you get billions in subsidies regardless.
 
From the article:

Speaking at the Chamber of Commerce of Metropolitan Montreal on Tuesday, Foreign Affairs Minister Mélanie Joly suggested LNG-Québec could play a role in getting Canada's oil and gas to new markets overseas, like Europe.​
"We currently have a vulnerability with respect to the United States for our oil and our gas," she said.​
"Canada has essentially one client. For Alberta oil, 98 per cent of the oil goes to the U.S. but we don't currently have pipelines that cross Canada to come to Quebec."​

Is "98%" just a figure of speech? We make about 4 million bpd, and apparently 345k of that is going to China via Vancouver.
 
From the article:
Speaking at the Chamber of Commerce of Metropolitan Montreal on Tuesday, Foreign Affairs Minister Mélanie Joly suggested LNG-Québec could play a role in getting Canada's oil and gas to new markets overseas, like Europe.​
"We currently have a vulnerability with respect to the United States for our oil and our gas," she said.​
"Canada has essentially one client. For Alberta oil, 98 per cent of the oil goes to the U.S. but we don't currently have pipelines that cross Canada to come to Quebec."​

Is "98%" just a figure of speech? We make about 4 million bpd, and apparently 345k of that is going to China via Vancouver.
Probably a bit of hyperbole, I thought i heard 90% and maybe that number is shrinking a bit as we ship more through TMX. But she is right that we are overwhelmingly dependent on the US when it comes tonselling our resources.
 
The Liberals being the pipeline party was very far down my list of things I'd thought I'd see. And yes I do know they bought a pipeline. See if their numbers in Quebec keep climbing after these speeches from Joly and Wilkinson.
 
The Liberals being the pipeline party was very far down my list of things I'd thought I'd see. And yes I do know they bought a pipeline.
The Liberals were fairly onboard with pipeline expansion until public opinion (outside of Alberta) turned against pipelines during the increasing public awareness and debate phase of the major projects in the 2010s. Public opinion was largely neutral or unaware until those big pipeline projects hit all that drama.

It was the decline of public support for pipelines that ultimately led to the Liberals making their "grand bargain" - keep a carbon tax, put TMX through (no matter what it takes including tens of billions of public support), while pausing others and adding regulation to address environmental and engagement concerns.

In hindsight it was a perfect compromise - no one was happy. The Liberals failed to get new support in Alberta despite getting a pipeline through, while they lost lots of support elsewhere for not doing enough and subsidizing the oil industry. The whole file is complex from top-to-bottom, so there's enough opportunities that everyone had something to hate about the decisions, the execution, the engagement, the communication etc.

I don't envy the federal government (and whichever party runs it) - they have a near-impossible job trying to wrangle a bunch of provinces with regionally diverse interests, politics, personalities, and pettiness - heavy is the head that wears the crown, as they say.

See if their numbers in Quebec keep climbing after these speeches from Joly and Wilkinson.

I do think the tariff/annexation threat is having one of the more abrupt and significant public sentiment shifts in recent Canadian history and the parties are recognizing that very quickly. It's a whole sea change, far beyond just pipelines, and appears to be leading to a mandate for systemic economic reform for whoever wins. The broken trust with the Americans is leading to an existential reprioritizing of public priorities.

The whiplash in public sentiment is lightning quick. The Conservatives whole "Canada is broken", anti-Trudeau and anti-carbon tax platform was strong pitch to a public tired of the current government, but seems wildly out of date now. Public priorities have shifted overnight thanks to Trump - pan-Canadian "defend our sovereignty" patriotism has rapidly replaced "Canada is broken", Trudeau's gone soon, Carney's economic pitch is resonating to a frightened public, and carbon tax is gone with either a Conservative or Liberal win.

Another relevant phrase comes to mind - there are decades where nothing happens; and there are weeks where decades happen.
 
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The Liberals were fairly onboard with pipeline expansion until public opinion (outside of Alberta) turned against pipelines during the increasing public awareness and debate phase of the major projects in the 2010s. Public opinion was largely neutral or unaware until those big pipeline projects hit all that drama.

It was the decline of public support for pipelines that ultimately led to the Liberals making their "grand bargain" - keep a carbon tax, put TMX through (no matter what it takes including tens of billions of public support), while pausing others and adding regulation to address environmental and engagement concerns.

In hindsight it was a perfect compromise - no one was happy. The Liberals failed to get new support in Alberta despite getting a pipeline through, while they lost lots of support elsewhere for not doing enough and subsidizing the oil industry. The whole file is complex from top-to-bottom, so there's enough opportunities that everyone had sometime to hate about the decisions, the execution, the engagement, the communication etc.

I don't envy the federal government (and whichever party runs it) - they have a near-impossible job trying to wrangle a bunch of provinces with regionally diverse interests, politics, personalities, and pettiness - heavy is the head that wears the crown, as they say.



I do think the tariff/annexation threat is having one of the more abrupt and significant public sentiment shifts in recent Canadian history and the parties are recognizing that very quickly. It's a whole sea change, far beyond just pipelines, and appears to be leading to a mandate for systemic economic reform for whoever wins. The broken trust with the Americans is leading to an existential reprioritizing of public priorities.

The whiplash in public sentiment is lightning quick. The Conservatives whole "Canada is broken", anti-Trudeau and anti-carbon tax platform was strong pitch to a public tired of the current government, but seems wildly out of date now. Public priorities have shifted overnight thanks to Trump - pan-Canadian "defend our sovereignty" patriotism has rapidly replaced "Canada is broken", Trudeau's gone soon, Carney's economic pitch is resonating to a frightened public, and carbon tax is gone with either a Conservative or Liberal win.

Another relevant phrase comes to mind - there are decades where nothing happens; and there are weeks where decades happen.
Time will tell how long lasting this is. The tariff threat was delayed, but there's no guarantee Trump will ever bring it up again. My belief is they'll soon be inundated with domestic issues that they won't have the capacity to levy these tariffs for a while. The big change is now there's a new person Liberals can blame for economic weakness, while Conservatives were blaming Liberals for everything under the sun, but the most sticky one was on the economy and now the Liberals have an out. The Liberal boosting in main stream media is a bit overblown. They're in a leadership race, there's always going to be a bump from that, how long it lasts after they actually select a leader is anyone's guess. All the pipeline support has been rhetorical, nobody is proposing any real legislation to get more built, and why you don't see any of the actual pipeline companies bothering with these empty statements.
 
Time will tell how long lasting this is. The tariff threat was delayed, but there's no guarantee Trump will ever bring it up again. My belief is they'll soon be inundated with domestic issues that they won't have the capacity to levy these tariffs for a while. The big change is now there's a new person Liberals can blame for economic weakness, while Conservatives were blaming Liberals for everything under the sun, but the most sticky one was on the economy and now the Liberals have an out. The Liberal boosting in main stream media is a bit overblown. They're in a leadership race, there's always going to be a bump from that, how long it lasts after they actually select a leader is anyone's guess. All the pipeline support has been rhetorical, nobody is proposing any real legislation to get more built, and why you don't see any of the actual pipeline companies bothering with these empty statements.
The Liberals always look for excuses to protect Laurentian industries or roll out stimulus packages, so a trade war conveniently becomes the problem to the already favored solution.

The US will never implement tariffs long term as nothing draws the ire of Americans than getting in the way of their consumption. Trump may think reshoring manufacturing will gain Rust Belt votes, but the backlash to increased prices on anything would be far worse.

Pipelines became a lazy symbol of climate activism, much like recycling become the best virtue signal for armchair environmentalists. The electorate is rapidly moving past climate activism due to fatigue and more pressing issues like cost of living. Midstream companies learned the lesson to maintain low profiles and likely won't propose new projects until regulatory uncertainties are removed, and anti-pipeline sentiment fades into memory somewhere behind Kony 2012.

Who knows if Liberal polling numbers will continue to rise. The attractiveness of the hypothetical new leader may crash once the new leader becomes reality. The existing Liberal Cabinet lining up behind Carney and Trudeau still acting like he has a mandate may also wear thin. Arrogance is Liberal Kryptonite.
 
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The Liberals being the pipeline party was very far down my list of things I'd thought I'd see. And yes I do know they bought a pipeline. See if their numbers in Quebec keep climbing after these speeches from Joly and Wilkinson.
It already was. Albertans just couldn’t tell because they were making choices to make it possible instead of just being loud about it.
 

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