The opposite of winning

Alberta Premier Dannielle Smith signed a memorandum of understanding with Mark Carney.  Smith is desperately trying to spin this as a win, but it is the exact opposite.  Alberta has agreed to increase carbon taxes to $135/tonne from the existing $95/tonne and implement carbon capture technology.  Ottawa has agreed to not put a cap on oil field emissions and allow Alberta to apply for a pipeline.

This might sound reasonable, but it is not.  Smith has committed to making life expensive for Albertans.  Carney promised nothing.  The emissions cap does not exist now so he promised not to do something in the future which will be unnecessary anyway.  The higher carbon tax and expense of carbon capture will curtail future production as much as the cap would have anyway.  And, as for the pipeline, being allowed to apply for a permit is not the same as being granted a permit.  Carney has been clear no new pipelines will be approved unless it meets his conditions.  The same conditions that were used to kill several previous pipeline projects.

No new pipelines will result from this agreement, which is a shame because Alberta could really use a pipeline to the west coast.  Currently Alberta sells oil to some Canadian provinces and the United States.  Having only one external customer is a problem.  Most of Alberta’s production has no choice but to go to the United States.  Buyers in the States know they have Alberta producers over a barrel and under pay for Canadian oil.

This new MOU will ensure that the US can continue to buy discounted Canadian crude until the higher costs agreed to by Smith kill the Alberta oil industry, and every other industry in the province for that matter.  This was not a win.  It was an unconditional surrender.  Smith promised to cooperate with the federal government’s lunatic climate agenda and got absolutely nothing in return.