Monday, July 4, 2022
The Green Market Oracle
  • Climate Change
    • Greenhouse Gas Emissions
    • Biodiversity
    • Wildfires
    • Extreme Weather
  • Energy
    • Fossil Fuels
    • Renewables
  • Politics
    • American Politics
    • Canadian Politics
    • International Politics
  • Social Change
    • Activism
    • Disinformation
    • Education
    • Psychology
    • Gender Equality
  • Business and Economics
    • Leadership
    • Decarbonization
    • Economics
    • Supply Chains
    • Investing
  • Technology
    • Carbon Removal
    • Carbon Capture
    • Transportation
    • Buildings
    • Food
No Result
View All Result
  • Climate Change
    • Greenhouse Gas Emissions
    • Biodiversity
    • Wildfires
    • Extreme Weather
  • Energy
    • Fossil Fuels
    • Renewables
  • Politics
    • American Politics
    • Canadian Politics
    • International Politics
  • Social Change
    • Activism
    • Disinformation
    • Education
    • Psychology
    • Gender Equality
  • Business and Economics
    • Leadership
    • Decarbonization
    • Economics
    • Supply Chains
    • Investing
  • Technology
    • Carbon Removal
    • Carbon Capture
    • Transportation
    • Buildings
    • Food
No Result
View All Result
The Green Market Oracle
No Result
View All Result
Home Other

Economic Costs of Harper’s Support for Fossil Fuels and Neglect of Renewables

by Richard Matthews
February 16, 2015
in Other
0

The ruling federal Conservative’s reliance on fossil fuels and neglect of renewable energy is taking a toll on the Canadian economy. The grim economic outlook prompted JPMorgan Chase & Co to warn, “There will be blood.” To make matters worse the province of Alberta is expected to fall into recession this year. The low price of oil will not only hurt the home of the tar sands in
Alberta, it will ripple across the entire nation.

To understand the energy implications of substantially lower oil prices in Canada you need only turn the clock back 6 or 7 years. In 2008/2009 low oil prices resulted in the cancellation of $90-billion worth of energy projects (mostly fossil fuel based projects including tar sands expansion). The tar sands currently account for 2 percent of Canada’s GDP and Canadian Prime Minister Stephen Harper was hoping to see it grow.

Some tar sands production sites like the Suncor and Syncrude Canada Ltd have costs per barrel of around $40, however a number of other tar sands projects are no longer profitable as costs run anywhere from $65 per barrel to well over $100. A recent study by BMO Nesbitt Burns pegged the average cost of developing an oil-sands mine and operating it profitably at about $90 per barrel

Low oil prices are driving down Canada’s petro-economy and the value of the Canadian dollar has already plummeted to a multi-year low as a result. According to Statistics Canada, the Canadian economy contracted by 0.2 percent in November. oil and gas extraction was down 0.7 percent due to a decline in tar sands oil and there was a 3.7 percent decline in fossil fuel support activities (eg drilling rigs for the mining and energy
sectors).

Economists have already shaved one third off of Canadian growth forecasts for 2015 as oil companies have started cutting spending and laying off workers. As a sign of desperation, the Bank of Canada cut interest rates as a direct response to falling oil prices.

Low oil prices have already caused major declines in the share prices of oil producers. The impact will get far worse as investors pull out of fossil fuels and consumer confidence wanes. This will have a cascade effect that will drag down the job rate and the real estate market.

While other nations were retooling their economies and preparing to transition away from fossil fuels, the Conservative’s economic plan ignored renewable energy and doubled down on fossil fuels. Rather than invest in the economy of tomorrow, Harper increased his support for the old energy economy.

With the support of the Canadian government, industry associations like the Canadian Association of Petroleum Producers resist greenhouse gas regulations and environmental laws. The Harper government continues to give oil companies generous subsidies and tax cuts.

In 2011, the International Monetary Fund indicated that Canada’s oil subsidies were $34 billion per year. If Canada had used that money to lay the foundation for the next energy economy including renewables, the country would be much better positioned for the future than it is today.

Despite the disinterest of federal politicians, clean energy already employs more Canadians than the fossil fuel industry. The low price of oil presents what an Economist article described as a “once-in-a-generation” opportunity to fix bad energy policy. However this may require a change of government as the ruling Conservatives are showing no signs of backing away from oil.

The current economic predicament speaks to the folly of the Prime Minister’s decision to double down on fossil fuels. If Canada can weather oil’s volatility it will be due to a strong performance from the rest of the Canadian economy including renewable energy sectors.

The ACCA report titled Canada’s Green Economy says there is reason to be optimistic about the future of Canadian cleantech. “Ernst & Young’s quarterly Global Renewable Energy Country Attractiveness Indices Report estimated that global renewable energy transactions in Canada increased by 41% from Q4 2011 to Q1 2012. Ernst & Young further forecasts robust growth across the Canadian renewable energy industry between now and 2015.” However the report also says, “Ultimately, any steps by Canada towards a green economy need to be seen in the context of its development of the oil sands in Athabasca.”

It would appear that Harper bet on fossil fuels and lost. Now Canadians will have to pay the price for years to come.

Related

Diminishing Profits Signal the Beginning of the End of Oil
Falling oil Prices Make Fossil Fuels a High Risk Investment
Oil is a Bad Investment
Financial Losses Associated with Fossil Fuels
Low Oil Prices Offer an Opportunity to Combat Climate Change
The Upside to Low Oil Prices
Climate Pros and Cons of Low Oil Prices
Falling Oil Prices and a Global Climate Agreement
Cheap Oil Will Not Stop Renewables
Why Oil Prices Matter for Renewable Energy
An Upside to Low Oil Prices?
Video – Why Oil Prices Will Keep Falling

ShareTweetShare
Previous Post

Canada’s Green Economy: Fossil Fuels Overshadow Sustainable Business

Next Post

Faith Groups that have Divested from Fossil Fuels

Related Posts

Seasons Greetings from the Green Market Oracle

by Richard Matthews
December 24, 2021
0

American Courts are Defending Democracy and the Environment

by Richard Matthews
December 14, 2020
0

Despite unprecedented challenges, America's legal system has held. In recent weeks the courts have repeatedly defended democracy and in the last four years they have overturned a wide range of environmental...

Environmental Plebiscites: Municipal Referendums and State Ballot Initiatives

by Richard Matthews
November 12, 2020
0

The November 3rd election not only elected an environmentally responsible president it also gave Americans a chance to vote on environmental issues in five state ballots and two city referendums. Americans ...

Next Post

Faith Groups that have Divested from Fossil Fuels

Leave a Reply Cancel reply

Follow Us

  • Facebook
  • Twitter
  • Email
  • LinkedIn
  • Reddit
  • SoundCloud

Subscribe to the Blog

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

different types of economic systems assessed by sustainable development goals
Economics

Types of Economies and their Implications for Sustainability

by Richard Matthews
June 28, 2022
0

What are the different economic systems and what is a sustainable economy? These are important questions that need to be...

Read more
The facts about Nuclear Energy reveal that it is safe and clean but it is not renewable

Fact Check Reveals Nuclear Energy is Safe and Clean but not Renewable

June 13, 2022

Environmental Implications of Three Types of Economies: Brown, Blue and Green

June 3, 2022

Types of Nuclear Energy: Where We Were and Where We are Today

May 31, 2022

The 10 Colors of the Economy and Sustainable Development Goals

April 20, 2022
  • About
  • Climate Change
  • Energy
  • Business and Economics
  • Politics
  • Technology
  • Social Change
  • Events
  • Other

© 2021 Copyright The Green Market Oracle.

No Result
View All Result
  • Business and Economics
    • Leadership
    • Supply Chains
  • Economics
  • Energy
    • Fossil Fuels
    • Renewables
  • Climate Change
    • Greenhouse Gas Emissions
    • Biodiversity
    • Extreme Weather
    • Wildfires
  • Investing
  • Politics
    • American Politics
    • Canadian Politics
    • International Politics
  • Technology
    • Buildings
    • Carbon Capture
    • Food
    • Transportation
  • Social Change
    • Education
    • Activism
    • Psychology

© 2021 Copyright The Green Market Oracle.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In