Nearly six months later, the feds have not moved at all on 300,000 bpd promise to help Europe, according to Moe

Brian Zinchuk

Brian Zinchuk is editor and owner of Pipeline Online

Premier Scott Moe spoke to the Lloydminster Heavy Oil Show opening ceremonies on Sept. 13. Photo by Brian Zinchuk

LLOYDMINSTER – As a result of the Russian invasion of Ukraine, Europe is facing a major energy crisis this coming winter. Russia has shut off the taps for the Nordstream 1 natural gas pipeline, and energy prices there are through the roof. Nearly six months ago, the Canadian federal government pledged to increase oil production by 300,000 barrels per day to assist Europe in its energy needs. But in all that time, the government of Saskatchewan, the second largest oil producing province in the nation, has seen exactly zero action from that same federal government.

Premier Scott Moe addressed the Lloydminster Heavy Oil Show opening ceremonies on Tuesday, Sept 13, speaking about the need for Canada’s sustainable oil production on the world stage, and the need to displace Russian oil. (Watch for the video to be posted next week on PipelineOnline.ca)

A March 24 story on CTV quoted federal Minister of Natural Resources Jonathan Wilkson, who said, “This is a crisis.”

“These folks in Europe are looking at the prospects potentially of not having fuel for the trucks that provide groceries for people to survive on or potentially not having adequate supplies of gas to heat their homes,” Wilkinson said.

After his speech, Pipeline Online asked Moe if the province had heard anything from the federal government on how they were going to accomplish that 300,000 barrel per day increase in production.

Moe said, “No.”

“And listen, it’s possible for Canadian production to increase by not only 300,000 barrels, but to increase substantially more than that, if the government puts action behind words just like that, and puts policy in place. Policy that will provide certainty for many of the folks that are in this room, here at the Lloydminster (Heavy) Oil Show, to invest in long term production increases.

“And just to have some stable policy in place, and then some stable policy in place on how we’re actually going to get that product out of Canada to a saltwater port, and ultimately to, the global market that is that is out there.

“So, yes, we can do that. But then what the federal government has failed to do is to put the policy behind the words that they spoke about three, four months ago.”

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Asked if the feds had said anything about a pipeline, or crude-by-rail, or new export infrastructure, or liquified natural gas to get to Europe, Moe said, “Quite the contrary, they’ve actually brought in policy changes that are detrimental to long term investment in additional barrels of oil production. And in at least Saskatchewan and Alberta, and I would say across Canada. If you want to increase your production levels, to provide energy to a place like the European Union, for example, that is experiencing a failed policy with respect to their energy security; failed policy, by purchasing their energy from Russia.

“You shouldn’t be putting in place in Canada a policy that says we’re going to cap production. You should be putting in place an incentive, or at least some policy certainty for the folks that are investing in those additional barrels, to ensure that they’re going to be able to produce those barrels, not just one year, two year, three years. Let’s be honest, some of the most sustainable energy production in the world is happening right here in Western Canada, and Saskatchewan and Alberta. And we shouldn’t be shy or bashful about that we should be proud of the way that our producers are bringing this oil to market. And we should be looking to bring more of this oil to market and displace some of the dirtier oil is being produced in other areas, areas like Russia, quite frankly,” Moe said.

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When German Chancellor Olaf Scholz came to Canada in August, seeking liquified natural gas, instead the federal government lined up a photo op in Newfoundland for a hydrogen energy project that will use on-shore wind power to split fresh water into hydrogen. That hydrogen would then be converted to “green ammonia” for shipment to Europe, since there is currently only one ship in the world capable of shipping liquified hydrogen, and even then in small quantities. Liquified hydrogen must be cooled to just 20 Kelvin, or -253 C, to be shipped in that form.

Canadian Prime Minister Justin Trudeau looks on as German Chancellor Olaf Scholz examines a hydrogen powered model car as they tour a trade show, Tuesday, August 23, 2022 in Stephenville, Newfoundland and Labrador. THE CANADIAN PRESS/Adrian Wyld

Asked about this, Moe said, “None of that is really relevant because, I don’t know that there’ll be hydrogen available to be shipped inside of three years. But most certainly what is available and could be available with some, sensible, common sense policy by the federal government, are increases in natural gas, are the ability to transport that gas to the European Union, and other areas of the world, quite frankly, as well.

“There is a business case for western Canadian oil to be provided to the world. As I said, it’s the most sustainable oil in the world. It’s produced cost-competitively, and we should really be ambitiously looking to replace some of those dirtier oils that are produced in other areas, namely, in Russia.

“Listen, the flawed policy of the European Union, of pushing emissions out of their country, but thereby buying that energy from a country like Russia, where they are producing higher emissions than we most certainly are, in our oil production here, it’s a flawed policy. It doesn’t prioritize energy security. And when you look at where the European Union is today, not quite likely not having enough oil and gas to keep their their industries running and their home heated throughout this winter. I think we can all agree this this is not a policy that Canada we should be looking at emulating. It certainly isn’t a policy that North America as a continent shouldn’t be looking to be emulating. Or we should be looking to ensuring that we are providing the most sustainable energy in the world, which is produced right here, first to all of our folks across North America. And then second, do what we can and addressing global energy insecurity,” Moe concluded.

Moe and Alberta Premier Jason Kenney are scheduled to speak at the luncheon at the Lloydminster Heavy Oil Show at noon on Sept. 14.

You can follow Pipeline Online at PipelineOnline.ca, on LinkedIn., Facebook and Twitter.

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