Energy One

The lack of a coherent and logical energy policy in Canada is infuriating. So in this blog I want to point out a couple of factors as too why Canada needs a coherent strategy. First, Canada continues to be the sole target for environmental groups amongst all other major oil producing nations. Have you ever heard of Protestors against oil pipelines in douche bag Saudi Arabia? No, because they will imprison and torture anyone who dissents the government. That is not the case in Canada as it is a safe haven for protestors and the organizations behind them. Protest a pipeline, even illegally protest and there are literally no consequences in Canada.

Second, Canada has the largest confirmed energy reserves in the world and yet imports oil from douche bag run countries like Saudi Arabia. WTF? It is estimated that from 2016 to 2020 Canada spent $81 billion dollars importing Oil from other countries. There is no better example of exporting well paying jobs out of a country than this.
Next, everyday Canadian Oil is manipulated in trading and it is politically manipulated. Canadian oil trades at a significant discount to other oils of similar quality. Similar Mexican crude trades about $11 higher per barrel than Canadian. Now politics in the US may affect Alberta’s ability to ship oil to Ontario refineries. Lawmakers in Michigan, even though there is an agreement between Canada and the US for the transportation of energy through each country, are trying to shut down two vital oil pipelines supplying Ontario refineries. Then with a new direction in Washington came the kiss goodbye to the billions of dollars, including tax payer dollars, with the cancellation of the Keystone XL pipeline a total political fiasco by the Canadian Government.

These are just a few facts about what Canada has had to face when it comes to energy and the undue influence that many environmental, political and corporate groups exert on this country. Look at the Tides foundation out of the US, who has paid protestors to come up to Canada and protest energy development, everything from the Tar Sands to pipelines. Do these same environmental groups like the Tides Foundation do similar in the Dakota’s with all the oil well fracking and flaring of gas? Nope and they flare so much natural gas from the wells that you can see North Dakota lit up from space.

Canada is that energy giant the US likes controlling and having in its back pocket; in 2019 Canada shipped 3.7 million barrels a day of crude oil to the US. This represents 99% of all of Canada’s exports of crude. Most of that crude was at a discount of around $11 per barrel to it’s Mexican counterpart. That means Canadian producers receive approximately $16 billion dollars a year less for the same oil. This happens because Canada’s oil is landlocked and so has only one buyer the US. As such US companies are able to dictate and I would say collude on pricing. When you have only one market to sell too and are reliant upon that market, it gives the other side control and Canada has given a great deal of control to US companies. For Canada to correct this, it needs pipelines that go to shipping ports (Tidewater) so the market becomes international not exclusive to the US. Through having access to Tidewater and being able to ship anywhere in the world, the sale of Canadian Oil will go to the highest bidder, not the single bidder anymore. By expanding the market beyond the US, Canada benefits economically. So who do you think does not want this to happen? US refineries and Corporations profiting from the discount .

If those companies are now having to pay $11 more per barrel, that will cost them billions on the Crack Spread. No that is not what you think, the crack spread is essentially the difference in dollar value between refined oil and unrefined.

So I believe it would be naïve for Canadians to ignore the billions of reasons why US Companies might want to meddle and influence their energy industry. The most effective method to stop pipeline development (or really any development in Canada), is to use the environmental argument and then enlist and fund controversial politically motivated groups through non-profits like the Tides Foundation. Who then sow discourse on multiple plains to prevent these projects from going forth.

The Tides foundation has been heavily funded by the Rockefeller family whose patriarch John D Rockefeller is best known for creating the monopoly Standard Oil which was broken up due to the monopoly power it enjoyed. Standard became names like, ExxonMOBIL, Conoco Phillips, Marathon and of course Chevron, who the Rockefeller family still own. What does Chevron do? They refine oil and sell it throughout Canada and the US. The Tides Foundation is a conduit to oppose pipelines in Canada as they are not in US interests and by that I mean, US Corporate interests.

An investigation by journalist, Vivian Krause, found that between 2000 and 2012 that US environmental groups had poured $300 million into legal challenges and protest support in order to meddle in Canadian environmental and domestic policies. It was on publication of the investigation that the Canadian government finally looked at the Tides foundation and what they have been doing, before deciding to cancel $ 8.3 million in funding that the government agreed to give to the Tides Canada Foundation. Holy MotherF!@#$%ng shit! The Canadian government was helping to fund an organization’s meddling in Canada’s own political affairs? Who the hell is running things? Ever heard of due diligence? Of course the answers to these questions are: Yes we were; A Monkey who flings pooh at everyone; No, this is Government not the private sector. This makes the WE Charity scandal seem frivolous in comparison.

Canadian energy independence and security is directly linked to the ability to move the products from one part of the country to the other, which can’t be done without a west to east pipeline, which does not exist. Refineries on the East coast are importing oil from two sources: OPEC countries like Saudi Arabia and surprise the US. So does Canada enjoy a discount for the US oil? No, not at all, Canada pays world oil price which is around $77 per barrel, around $21 higher than the US pays for Canadian Crude.

As I stated earlier, from 2016 to 2020 Canada imported $81.1 worth of Oil mostly from the US, Saudi Arabia and Nigeria. Billions a year leaves Canada and goes to help support inherently corrupt regimes like Douche Bag Saudi Arabia. A country with an appalling human rights record, beheadings and crucifixions are still carried out for crimes like witchcraft, and a government under head Douche Bag, Mohammed Bin Salman (MBS), that is so embolden they ordered the killing of journalist Jamal Khashoggi by a Saudi hit team in Turkey. Really, can it get more ridiculous and infuriating? Canada has an energy industry and workers who are suffering financially and Canada spends billions to purchase oil from a Supreme Douche Bag, MBS.

These outside groups have successfully influenced the termination of several vital pipeline projects that would have benefited Canada economically and provide energy independence and national security. There has been the cancellation of the Keystone XL, a proposed East West pipeline and also the Northern Gateway pipeline. Currently, the only pipeline project going ahead to Tidewater is the TransMountain pipeline, which is proceeding but still facing challenges and protests.

So what does Canada do about it? Canada needs all levels of government: Federal, Provincial and Indigenous to start talking and develop a strategy that eliminates the outside influence and maximizes the benefits of Canadian energy for Canada. It means a level of political will that recognizes the need for pipelines right across Canada for both economic and national security. Canada imports nearly 44% of the oil it consumes on a daily basis from foreign sources, all of which goes to east coast refineries. Ask yourself what would the eastern provinces do if this supply were cutoff? I bet then they would be screaming for a pipeline to supply their refineries and PM Photo Op might actually realize time to learn how important energy is.

There is a lot more Canada has to do so it is not constantly taken advantage of by outside players like the US and Douche Bag Saudi Arabia. I am going to say it is time that Canada put itself first and quit being so F@#k’n polite to all the Douche Bags and others who meddle in its affairs.