Here’s How Justin Trudeau Is Wrecking The Canadian Oil Industry

It’s all about the discount, and it’s crushing the industry by stealth.

There’s no doubt that Justin Trudeau’s true feelings about the Canadian oil industry are totally negative.

He views it as a bad thing, as a ‘polluter,’ and as something to be crushed.

Remember, he once said the oil sands should be ‘phased out.’

However, Trudeau also knows that he can’t be seen as actively trying to destroy the Canadian oil industry, so he and his government often make enough ambiguous statements to give the impression of tepid support.

They try to muddy the waters just enough so they claim to ‘support Canadian energy,’ without actually supporting it.

Yet, we can see past the deception.

We can see exactly how Justin Trudeau is wrecking the Canadian oil industry:

It’s all about restricting pipeline capacity by blocking some pipelines, moving incredibly slow on others, and then imposing regulations that make new pipelines almost impossible and pushes investment out of the country.

The result of this is that the discount (AKA price difference) between Canadian oil and oil from our competitors has reached absolutely absurd levels, costing Canada billions of dollars. We sell our oil at such a low price that it’s having a devastating impact on the industry, and hollowing it out from the inside.

Here’s what was recently reported by the Calgary Herald:

“We are operating right on the knife’s edge on egress out of Alberta,” said Scotiabank commodity economist Rory Johnston.

“It’s not just about heavy (oil), it’s about all Canadian oil that is getting punished here by the lack of pipeline capacity.”

If it doesn’t shrink soon, the discount will have consequences for petroleum producers, future industry capital spending, and revenue for governments.

Every $1 increase in the price discount for Western Canadian heavy oil over the course of a year will cost the Alberta treasury about $210 million.Whitecap Resources CEO Grant Fagerheim estimates the price differential will cost all producers up to $100 million a day in lost revenues at current levels.

Fagerheim added, “Heavy oil producers are getting 40 per cent of what they normally would be paid if we had access to markets. It’s crazy, crazy, crazy.”

Trudeau’s decision to cancel pipelines and block/delay others while destroying the investment climate is making the discount worse and worse and worse.

This is the destruction of the Canadian oil industry by stealth, and it’s not happening by accident.

Justin Trudeau and the Liberals are purposely wrecking our Canadian oil industry, while attempting to do it in such a way that they avoid blame for it.

The cost to Alberta, and all of Canada is reaching into the billions, and it’s deepening the already severe political divisions in Canada.

It is an economic and national crisis, it’s a betrayal of Albertans, and it’s weakening our entire country.

Spencer Fernando

Photo – Twitter

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Ron Voss
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Ron Voss

“It’s a crisis,” Tim McMillan, chief executive of the Canadian Association of Petroleum Producers, said.

According to CAPP, “Climate change is an important global issue, requiring action across industries and around the globe.” Throwing up the white flag on the hoax of man-made climate change and thereby complicit as far as the consequences.
Indeed, “It’s crazy, crazy, crazy.” Cry me a river!

doug
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doug

And this is all the more reason for western (Alberta/Sask/northern BC) to separate & leave the eastern dictatorship to wallow in their socialist utopia.

Ana Gomes
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Ana Gomes

In BC,we are becoming more and more Communist every day. Look at the affordable housing solutions proposed by Very Stupid Carol James. Who would ever think that smart Canadians would allow a politician to implement such extreme and vicious socialist ideas? Extortion by the Socialist Mob. How do you like it , pretend do-gooders from hell?

Ben Eby
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Ben Eby

All Canadians are complicit in the insane destruction of the Canadian oil industry and all the inherent benefits because they allow the government to rule with impunity. No one denies the well being of our environment must be part of all resource development and in this respect, Canada has the best record in the world! So why are Canadians so blind as to deprive themselves of a robust economy across the nation, with many high paying jobs in manufacturing, processing, shipping, science, and technology, etc., etc., along with top quality schools, hospitals, universities, and research centers. Stupidly we are letting… Read more »

Frances
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Frances

Justin might have to re-think “equalization”. It is my understanding that – while all oil and gas revenues are included in looking at a province’s liability under the program, Quebec is allowed to exempt its considerable revenues from hydro. Could someone correct me on this.

At any rate, if JT was at all concerned about Canadians, he would order Quebec to stop selling hydro to the US and – instead – turn the wires due east so New Brunswick and Nova Scotia could have the benefit of this “cheap” hydro power. And at a discount, as well.

Ken (Kulak)
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Ken (Kulak)

This destruction of western Canada’s resource industry is by design.

Ken (Kulak)
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Ken (Kulak)

I should have prefaced my comment with “I agree with Spencer,