Jack Mintz: Only one country is contemplating destroying its own resource sector: Canada

Financial Post
Prime Minister Justin Trudeau's government Financial Post | James Alexander Michie

Prime Minister Justin Trudeau's government is only willing to accept a fraction of the more than 180 amendments proposed by the Senate to C-69. Ed Kaiser / Postmedia

It is already well known that, based on surveys, most Canadians want mining and the development of fossil fuels to be carried out with adequate environmental guarantees. While numerous politicians have expressed their desire to completely stop the development of resources. And it is that his plan is for no more oil projects. No more pipes. No more natural gas fracking. And no more coal. Some politicians are even coming to consider ending mining. That being the case, one could say that there is no more responsible development of resources. There is no development of resources at all.

For his part, the prime minister of Quebec wants to reduce the consumption of oil in his province by 40 percent by 2030. Elizabeth May, head of the Green Party, wants to ban the importation of foreign oil and ban all new development of fossil fuels here in Canada. In fact, many NDPers oppose the development of fossil fuels, including LNG plants.

Now, it is necessary to mention that while Canada is debating whether to stop using our resources, most countries are making greater use of theirs.

It is considered that the Senate will probably approve Bill C-48 against the recommendations of its own committee that studied the bill. And is that the Trudeau government said it is only willing to accept a minority of the more than 180 amendments proposed by the Senate to the C-69, euphemistically called Bill “No pipes” by the Prime Minister of Alberta, Jason Kenney. That is, it will accept only the changes proposed by the senators aligned with the Liberal Party while rejecting any suggested amendment backed by the industry and the provinces that depend on oil and gas.

However, other countries understand that the world demand for fossil fuels, currently 100 million barrels per day, will not disappear completely for at least several decades if it disappears. And it is necessary to point out that petrochemical products are fundamental for many of the products we consume today and technology is not yet available to provide a substitute for petroleum as a fuel for industrial uses, long distance transport, maritime transport, and aviation

In this way, it is appropriate to mention that it would make sense for Canada to have a carbon policy consistent with its main trading partners, most obviously the United States. However, it makes no sense for Canada to impose high-cost policies on our economy that will drive resource companies to other jurisdictions where they can still be developed. US oil exports to allow for production growth.

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Source: Jack M. Mintz | Financial Post

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