Latest news with #Masson
Hamilton Spectator
24-05-2025
- Business
- Hamilton Spectator
Minister says Canada needs ‘infrastructure that gets our energy to tidewater' at Calgary meeting
Canada's new energy and natural resources minister championed the energy sector Friday, calling on governments and industry to work together to build the Pathways Alliance's proposed carbon capture project. In a keynote speech to the Calgary Chamber of Commerce, Tim Hodgson pitched his government's vision of Canada as an energy superpower — exporting oil and gas to the world for decades to come — and pledged to be a voice for Alberta and Western Canada at the cabinet table. 'We need infrastructure that gets our energy to tidewater and to trusted allies — diversifying beyond the US,' he said. To do this, the federal government will fast-track approvals of projects in the 'national interest' with Prime Minister Mark Carney's promised policy of 'one project, one review,' less red tape and more certainty, Hodgson said. 'I think he was trying to set a tone that says, 'We're going to change the system',' said Richard Masson, an executive fellow at the University of Calgary's School of Public Policy and the former CEO of the Alberta Petroleum Marketing Commission Masson said Hodgson's speech signalled that the government is 'going to focus on getting things done and make it more attractive for private-sector development and investment.' Alberta Premier Danielle Smith has been relentless in her calls for the federal government to abandon its proposed regulations to cap oil and gas sector emissions and scrap the Impact Assessment Act, among other environment and climate policies. Carney recently opened the door to making changes to these key policies to move projects forward. Hodgson's speech doesn't reference these two policies by name but leaves that question open, said Masson and Martin Olszynski, an associate professor and chair in energy, resources and sustainability at the University of Calgary. Oil and gas is the country's largest emitting economic sector and the draft regulations would require oil and gas companies to cut emissions by 35 per cent below 2019 levels by 2030. 'He didn't explicitly say what he was going to do, but I think there is … a recognition that some of this stuff has to change or they won't achieve their objectives,' Masson said, referring to the goal of reducing emissions and exporting energy. To Olszynski, Hodgson's speech suggests 'a willingness to discuss and even adjust current policies … but it will be backstopped with an intention to still meet some of those goals.' Hodgson, in his speech, placed particular emphasis on the $16.5-billion Pathways Alliance project to capture carbon dioxide from 13 oilsands sites in northern Alberta and send it to an underground storage site south of Cold Lake through 600 kilometres of pipeline. 'We will invest in carbon capture, methane reduction and other technologies to ensure Canadian oil and gas is not only produced responsibly, but is the most competitive in the world,' Hodgson said. 'This government will not be a government of talk, but a government of action. We need the same from the province of Alberta and the Pathways Alliance.' The Pathways project is undergoing regulatory reviews for over 100 different segments, but on the business side, the project is still awaiting a final investment decision. A global think tank, the international Institute for Energy Economics and Financial Analysis, found the project's business model is shaky . Masson said the federal government has a lot of work to do to establish certainty for investors. The potential for a cap on oil- and gas-sector emissions and uncertainty around carbon credits would 'complicate everything to the point where nobody would be willing to invest.' 'It's going to take getting everybody in a room and sorting out where the real barriers are,' Masson said. According to Hodgson's speech, his government is ready to do the work to create certainty and turn Canada into an energy superpower, but needs a willing partner. 'We need to demonstrate to our customers outside the US, and to our fellow Canadians, that we are a responsible industry — and this government believes Pathways is critical to that reality,' Hodgson said. Hodgson played up his Western roots and business background for the oil and gas crowd, particularly his time as a board member at MEG Energy, and at Goldman Sachs, where he brokered the Alliance Pipeline deal to move natural gas from northwestern Alberta and northeastern British Columbia to the American midwest. He also pointed to his time as board chair of Hydro One and belief that Canada's future depends on integrated electricity grids. 'Our new government will quickly work with provinces and territories on east-west transmission and better integrate our systems,' Hodgson said, adding this is part of Carney's stated goal of creating one economy, not 13. This idea of an east-west transmission grid is a clear priority for the federal government and a big deal, both in terms of energy security and decarbonization goals, Olszynski said. 'A lot of people are waiting with bated breath to figure out what's the direction this government is going to go in,' Olszynski said. 'We're starting to see the contours of that here … I'll be watching to see how the province responds and how industry responds now.'
National Observer
23-05-2025
- Business
- National Observer
Minister says Canada needs 'infrastructure that gets our energy to tidewater' at Calgary meeting
Canada's new energy and natural resources minister championed the energy sector Friday, calling on governments and industry to work together to build the Pathways Alliance's proposed carbon capture project. In a keynote speech to the Calgary Chamber of Commerce, Tim Hodgson pitched his government's vision of Canada as an energy superpower — exporting oil and gas to the world for decades to come — and pledged to be a voice for Alberta and Western Canada at the cabinet table. 'We need infrastructure that gets our energy to tidewater and to trusted allies — diversifying beyond the US,' he said. To do this, the federal government will fast-track approvals of projects in the 'national interest' with Prime Minister Mark Carney's promised policy of "one project, one review,' less red tape and more certainty, Hodgson said. 'I think he was trying to set a tone that says, 'We're going to change the system',' said Richard Masson, an executive fellow at the University of Calgary's School of Public Policy and the former CEO of the Alberta Petroleum Marketing Commission Masson said Hodgson's speech signalled that the government is 'going to focus on getting things done and make it more attractive for private-sector development and investment.' Alberta Premier Danielle Smith has been relentless in her calls for the federal government to abandon its proposed regulations to cap oil and gas sector emissions and scrap the Impact Assessment Act, among other environment and climate policies. Carney recently opened the door to making changes to these key policies to move projects forward. Hodgson's speech doesn't reference these two policies by name but leaves that question open, said Masson and Martin Olszynski, an associate professor and chair in energy, resources and sustainability at the University of Calgary. Oil and gas is the country's largest emitting economic sector and the draft regulations would require oil and gas companies to cut emissions by 35 per cent below 2019 levels by 2030. 'He didn't explicitly say what he was going to do, but I think there is … a recognition that some of this stuff has to change or they won't achieve their objectives,' Masson said, referring to the goal of reducing emissions and exporting energy. To Olszynski, Hodgson's speech suggests 'a willingness to discuss and even adjust current policies … but it will be backstopped with an intention to still meet some of those goals.' Hodgson, in his speech, placed particular emphasis on the $16.5-billion Pathways Alliance project to capture carbon dioxide from 13 oilsands sites in northern Alberta and send it to an underground storage site south of Cold Lake through 600 kilometres of pipeline. 'We will invest in carbon capture, methane reduction and other technologies to ensure Canadian oil and gas is not only produced responsibly, but is the most competitive in the world,' Hodgson said. 'This government will not be a government of talk, but a government of action. We need the same from the province of Alberta and the Pathways Alliance.' The Pathways project is undergoing regulatory reviews for over 100 different segments, but on the business side, the project is still awaiting a final investment decision. A global think tank, the international Institute for Energy Economics and Financial Analysis, found the project's business model is shaky. Masson said the federal government has a lot of work to do to establish certainty for investors. The potential for a cap on oil- and gas-sector emissions and uncertainty around carbon credits would 'complicate everything to the point where nobody would be willing to invest.' 'It's going to take getting everybody in a room and sorting out where the real barriers are,' Masson said. According to Hodgson's speech, his government is ready to do the work to create certainty and turn Canada into an energy superpower, but needs a willing partner. 'We need to demonstrate to our customers outside the US, and to our fellow Canadians, that we are a responsible industry — and this government believes Pathways is critical to that reality,' Hodgson said. Hodgson played up his Western roots and business background for the oil and gas crowd, particularly his time as a board member at MEG Energy, and at Goldman Sachs, where he brokered the Alliance Pipeline deal to move natural gas from northwestern Alberta and northeastern British Columbia to the American midwest. He also pointed to his time as board chair of Hydro One and belief that Canada's future depends on integrated electricity grids. 'Our new government will quickly work with provinces and territories on east-west transmission and better integrate our systems,' Hodgson said, adding this is part of Carney's stated goal of creating one economy, not 13. This idea of an east-west transmission grid is a clear priority for the federal government and a big deal, both in terms of energy security and decarbonization goals, Olszynski said. 'A lot of people are waiting with bated breath to figure out what's the direction this government is going to go in,' Olszynski said. 'We're starting to see the contours of that here … I'll be watching to see how the province responds and how industry responds now.'
Global News
10-05-2025
- Automotive
- Global News
Plunging world oil prices are a mixed blessing for Albertans
With world oil prices plunging to four-year lows — combined with the recent elimination of the federal carbon price — many Alberta drivers are saving some money when they pull up to the pump. Mani Singh of Edmonton told Global News that he used to spend about $500 per month on gas, but now he's only spending about $300 per month. 'I'm saving a lot of money,' said Singh, who on Friday was paying 124.9 for a litre of gas at his local station. In Calgary, after selling for as low and 109.9 per litre on Wednesday, the price had jumped back up over 130. per litre by Friday. View image in full screen Mani Singh of Edmonton said he used to spend about $500. per month on gas, but he's now spending about $300. per month. Global News 'I think for Albertans as consumers going into the driving season, prices will be pretty favourable,' said Richard Masson, an executive fellow at the University of Calgary's School of Public Policy. Story continues below advertisement 'With the reduction from the carbon tax of 18 cents and now lower oil prices, that's all translating into lower prices at the pumps, which will help Albertans. Especially those who decided to stay home and holiday this year,' added Masson. 1:52 Alberta responds to OPEC production increase Masson said there are two primary reasons why oil prices are plunging. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'Prices have weakened over the last few weeks, primarily driven by the tariff threat that President Trump has around the world and the likelihood that will lead to a recession which lowers oil demand,' said Masson. 'On top of that, Saudi Arabia has been working to bring back 2 million barrels a day of OPEC plus cuts and they decided to do it quicker than anybody had expected.' View image in full screen Oil industry experts say, while the plunging price of oil may be good for drivers, it threatens to put a huge hole in the government of Alberta's budget. THE CANADIAN PRESS/Larry MacDougal The uncertainty in the world oil markets has pushed the price below $58 US per barrel this week. Story continues below advertisement While the low prices may be a blessing for drivers, if the price continues at that level it will create a huge problem for the provincial budget, which was originally forecast to include a $5.2-billion deficit on the expectation that oil prices would average about $68 per barrel. 'Each $1 change is a $750 million hit to the Alberta budget — so a $10 change over the course of the year is $7.5 billion,' said Masson. The pain may be lessened somewhat because the price difference between the price of west Texas intermediate (the benchmark grade for global oil pricing) and western Canada select (the price heavier Canadian crude) has narrowed in recent months — which should help reduce the size of the deficit. But Masson said if these low world oil prices continue, 'it's going to put a lot of pressure on provincial spending.' The office of the Alberta finance minister says the provincial government will provide a budget update in August.
Global News
05-05-2025
- Business
- Global News
Alberta's energy industry, government watch nervously as oil prices hit 4-year low
'This isn't a crisis for the industry yet. The bigger problem will be for the Alberta government in its deficit.' That's how Richard Masson, an executive fellow at the University of Calgary's School of Public Policy, sums up the impact of plummeting oil prices that fell to around $57 U.S. per barrel on Monday — the lowest in four years. While the low prices have also led to drop in gasoline prices, it is the broader economic impact that both industry and government are concerned about. View image in full screen Alberta Finance Minister Nate Horner delivers the 2024 budget in Edmonton on Thursday, Feb. 29, 2024. The budget forecast an oil price of $68. per barrel this year, but on Monday the price plunged to near $57. THE CANADIAN PRESS/Jason Franson The government of Alberta forecast a deficit of $5.2 billion for this fiscal year under the expectation that oil prices would average about $68. per barrel of west Texas crude (WTI) — and that's without knowing the impact of U.S. President Donald Trump's tariffs on the Alberta economy. Story continues below advertisement 1:56 Dramatic crash in global oil prices–Here's why Canada is watching closely While the selling price for most Canadian oil, known as western Canada select (WCS) — which normally sells at a discount compared to WTI — has narrowed in recent months, if the low prices continue, it will put a huge hole in the province's budget. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Masson estimates for every $1 decline in the price of oil — that lasts one year — it means a $750-million hit to the provincial government's budget. 'It's one of those things that puts pressure on every government program, and everything that the government wants to do. When they're facing bigger deficits than they planned,' said Masson. 'So these are big numbers, $10 billion deficits.' Asked for a response to the falling oil prices, the office of Alberta Finance Minister Nate Horner emailed a statement to Global News, reading, 'we budget for the entire fiscal year and we are currently one month into that year. The differential (WCS vs. WTI) remains around $9. compared to the budgeted $17. which will offset some of the revenue lost from lower prices.' Story continues below advertisement The finance minister's office added, 'we will provide an update on our revenue projections in August.' View image in full screen The group known as OPEC+, led by Saudi Arabia, has proposed greatly increasing global oil production over the summer, causing oil prices to plummet to their lowest level in four years. Provided to Global News Oil prices have plummeted on expectations that the global economy will slow in reaction to Trump's trade war, and more recently on news the group of oil producing countries known as OPEC+ and led by Saudi Arabia could boost global oil production by about 2.5 million barrels per day by October — greatly increasing supply at a time demand is on the decline. 'The Saudis are a big producer. They have the ability to weather a storm much better than anybody else,' said Masson. 'If they keep on this path, they will end up with a bigger market share for themselves, even though it's at a lower price, and eventually that will translate into them having a bigger market share when the price goes up again.' Story continues below advertisement 1:40 'It's bad': Alberta energy sector nervous for slumping oil prices Rory Johnston, an energy market analyst with Toronto-based Commodity Context, said if Saudi Arabia follows through on its threats, prices could plummet even further. 'If we get further confirmation that OPEC is going to proceed with this kind of full 2.5 million barrel a day unwind by October, we're going lower from here,' said Johnston. 'It's almost assured. There's no way that this current oil market at these current prices can absorb that level of supply without further pain.' While the low oil price will be a challenge for government royalties, Johnston said the Canadian oil industry is in relatively good shape to weather the storm. 'This is not anywhere near kind of a doomsday scenario for the Canadian oil and gas sector,' said Johnston. 'But what it likely will mean is that Canadian oil production growth last year was one of the strongest in the world. Story continues below advertisement 'All else being equal, if these prices persist, I would expect to see that pace of growth begin to slow a little bit.' Johnston said lower oil prices may also have another unexpected benefit, because if the Americans are paying less for Canadian oil, it could help lower the Americans' trade deficit with Canada, which has been a huge complaint of the U.S. president. 'If it wasn't for crude oil, the U.S. has enjoyed a multi-decade trade surplus with Canada,' said Johnston. 'All else being equal, lower oil prices is going to mean a lower trade deficit with Canada. 'We have seen many, many times that Trump loves to just randomly take credit for things after they've happened for other reasons. The oil price could decline, the trade deficit of Canada is going to shrink, Trump could just declare victory then and there, right?
CBC
03-04-2025
- Business
- CBC
Here's what Saskatchewanians can expect at the pumps without the carbon tax levy
Social Sharing On Tuesday, the federal government paused the consumer carbon tax nationwide, but people in Saskatchewan claim they haven't seen prices drop as much as they'd like. "That's good for the province that we're carbon tax free, not happy with the price of fuel it didn't drop as much as it's supposed to though," said Terry Orban, a motorist in Regina. Up until yesterday, the tax translated to about $0.18 per litre, which is the drop motorist were hoping to see at gas stations in Saskatchewan. According to GasBuddy analysts, Saskatchewan has seen about a $0.13 price drop since Sunday, which experts say is on par with other provinces. "According to our data, the average price on Sunday was 157 in Regina. Now we're down to an average of 144.1, so almost a $0.13 litre drop," said Patrick De Haan, head of petroleum analysis at GasBuddy. "This is kind of a fairly typical decrease of about $0.13 a litre." De Haan says it's typical for gas prices to go up this time of year, and the province should maybe even expect to see an increase over the following weeks. "We're making the transition from winter gasoline to summer gasoline. That's basically why we saw the increase here over the last couple of days prior to the carbon tax pause was because of the transition to summer gasoline, which is more expensive." De Haan also addressed concerns over gas stations and oil companies raising prices before Tuesday's tax cut. "There's a lot of cynical folks who think this is somehow, you know, the oil companies raise prices to offset the carbon tax. But a lot of this is seasonal, gas prices have gone up across much of Canada and the United States over the last week," said De Haan. Several factors keeping prices up Richard Masson, an executive fellow at the University of Calgary's School of Public Policy, says it's important to keep in mind that recent actions from U.S president Donald Trump have lead to higher gasoline and diesel prices across the globe. "He's putting pressure on Iran about its nuclear program and that's restricting the amount of oil they can produce and he's, in the last few days, said he's angry with Russia and he's going to put more pressure on them about their dark market oil exports," said Masson. Masson says that the price of Canadian currency also drives up oil prices for us. "When the Canadian dollar is weaker, it means the gasoline price in Canadian dollars gets a little bit higher, and so we've had a weak Canadian dollar." Masson also pointed out that due to factors such as seasonal changes and refinery maintenance, prices in the province typically trend higher this time of year. "Refineries need to switch the quality of fuel to make sure that there's less vapour coming out of the gasoline, and for environmental purposes. That adds a little bit of cost right around this time of year." Based on these factors, De Haan expects Saskatchewan residents to see a trending high for the next couple weeks, but then prices will start to trend lower into the rest of the year. "Without the carbon tax pause, gas prices would be another $0.17 a litre higher," said De Haan.
