Oh, and the country with the largest oil reserves in the world is a failing state because of two decades of socialism. So what are they going to do? Invade their neighbour, to grab more oil. We don’t get a lot of nation-state wars and invasions in this hemisphere, but we might see one with days.
(Yes, I know the graphic says 32nd year. It was originally published 6 years ago, and as updated, as it still applies today. No aircraft carrier for me, or likely you, either. But you know you wanted one.)
And here’s an analysis of why. It has a lot to do with the fact Nova Scotia can still pay for its hospitals with natural gas money, just natural gas produced in Alberta and Saskatchewan. And it has more to do with Guilbeault announcing a defacto production cap by banning venting and flaring.
As a side note, two years ago I ran into the consultant whose job it was to shut down, abandon and clean up this project. He was the company man looking after the drilling of the first lithium well in Canada, near Torquay, Saskatchewan. I never got around to writing a story about it, dammit. Not enough hours in the day.
And if anyone feels like asking CJME/CKOM why Zinchuk isn’t scheduled to do his regular energy spot the first Wednesday of the month, as he did with Gormley:
In related news, in case you missed it Sunday night because I messed up my scheduling, a great column on Saskatchewan telling the feds to FU on the carbon tax on home heating:
This is significant news. I’ve been saying for a while that Crescent Point has lost interest in Saskatchewan, and any day now we can expect the company to sell off its assets here. Note that both Shaunavon and Weyburn have rinks called “Crescent Point Place” and the lounge at the Estevan rink is similarly named. I pointed out in the story the company for a brief time was Saskatchewan’s largest oil producer. They did over 20 acquisitions (actually closer to 30, I believe), most of them in Saskatchewan, creating many millionaires and making a lot of people rich. But these days it is readily apparent their interest is elsewhere. The only references to Saskatchewan were, at the top of the list of highlights, that this deal “Transforms company into a Montney and Kaybob Duvernay focused E&P with complementary long-cycle assets in Saskatchewan.”
Also noteworthy – with this announcement they are increasing the Alberta proportion of their capital expenditure to 80%, up from the 70% from just a few weeks ago. It wasn’t that long ago, it was more like 95% in Saskatchewan.
So if you want to know why our drilling rig count is down so much, why $80 to $90 oil doesn’t have activity shooting up in this province – here’s your answer.
If someone’s going to make billions in the lithium world, maybe we in Saskatchewan should put some of that in our pocket. One of the three active lithium explorers in Saskatchewan is moving closer to commercialization. This is a video I did showing what’s going on. Lots of cool shots of earthmovers.
If you haven’t been paying attention, South Africa is falling apart. The reasons are many and various. But a principal factor is an increasingly unreliable power grid leading to up to a third of the grid being in the dark at any one time.
This is why Pipeline Online has been covering the reliability of the Canadian electrical grid with such intensity. Politicians talk about “reliability, sustainability and affordability of the electrical grid.” As these videos outline in great detail, when reliability collapses, nothing else matters. South Africa has at times one third of its grid in rolling blackout. Everything from food preservation to industrial factories to medical operations ends up in peril.
The minute any grid operator, power generator, or government starts talking about “load shedding,” things are going to hell in a handbasket in a hurry.
And as a reminder, the Alberta grid had eight “grid alerts” in the last year, each time when wind and or solar power generation failed. Alberta is a jurisdiction that has more coal, oil, and gas than God, because God gave all of his to Alberta. The only way this could happen is sheer and utter incompetence. You might consider that getting rid of reliable and cheap coal-fired power generation in favour of more and more wind and solar power might be indicative of this. And in the last few days, Alberta brought on another 297 megawatt wind farm, bringing their total wind generation to 4,150 megawatts. Two years ago, it was closer to 2700 megawatts.
Late in the afternoon of Oct. 26, the staunch federal Liberal policy of climate change priorities conquers all just cracked. With Atlantic Canada, once a solid Liberal base, up in arms over the federal carbon tax on fuel oil used for home heating, Prime Minister Justin Trudeau blinked.
So the federal government has been pushing for an “Atlantic Loop” that would tie in all of Eastern Canada to massive hydro electric generating capacity in Quebec and Labrador. Think Churchill Falls, Muskrat Falls. Newfoundland has already built the connection between Labrador and the Rock. But the idea was to build undersea connections from the Rock to Nova Scotia. The idea was to get rid of remaining coal-fired power generation. Well, that fell apart in recent days. This Canadian Press story might talk about a “modified loop,” but it is really a collapse of the original idea. “Too expensive.” But if this is too expensive, how are we in Saskatchewan supposed to get rid of our coal and natural gas?
Here’s Alberta Premier Danielle Smith’s response, verbatim. I like doing these verbatim pieces because it allows the reader to hear the full-throated discussion, without a filter. It’s interesting how she talks about how the $20.6 billion Teck Frontier oilsands mine was killed by the No More Pipelines Act. That’s not chump change. Anyone think they might reconsider it? (That’s a trick question – Teck has since abandoned and sold off its oilsands interests – for obvious reasons.)
Also, after nearly three years of work since it drilled its first well near Climax, Saskatchewan, Royal Helium has entered into production with its first helium facility near Brooks, Alberta. This is transformational for the company, as it turns Royal from an explorer with no revenue to a helium producer, with revenue. Indeed, its production is already locked up in sales, so strong is the demand. And expect their next focus to likely be in Saskatchewan.
I’ll have another significant helium story posted for Tuesday morning. Exciting times, this.
If you didn’t catch it last week, Sask Polytechnic is getting a brand spanking new campus. Too bad it won’t be anywhere close to finished before my daughter finishes her journeyman heavy duty mechanic ticket. (She just started her 4 year apprenticeship, if that give you a hint.) Maybe my 16-year old son will get to attend the new site in his fourth year of apprenticeship?
Did you know Manitoba has an oilpatch? Often their own politicians don’t really clue in on it, including former Premier Brian Pallister. I can’t find it now, but when he flip-flopped on fighting the carbon tax, he made accusations against “oil producing provinces.” Manitoba produces around 38,000 barrels per day. Anyhow, the largest oilfield in Manitoba is now 19 years old.
And the big one for last week: my column on how Saskatchewan goes big into nuclear. Funny thing is I’ll be speaking to the SaskPower CEO on Monday. We’ll see if I’m on the mark or not.
Conservative Leader Pierre Poilievre took some time to speak about energy during his keynote speech to the Conservative national policy convention in Quebec City on Sept. 8. In those comments, he spoke about natural liquefaction extensively, as well as small modular reactors, hydroelectricity, tidal power and oil production. He mentioned more wind power, but did not speak of solar power generation. He also referred to producing minerals for electrification in Canada instead of China. This was an oblique reference to lithium, without actually mentioning lithium.
If you didn’t catch it – Steven Guilbeault crashed the Conservative policy convention in Quebec City. He wondered if Pierre Poilievre believed in climate change. Here’s some of what he had to say.
Alberta’s E3 Lithium might be first out of the gate with a pilot lithium plant, but several are in the works for Saskatchewan. And E3’s stated lithium concentration is 74.5 mg/L, while at Coleville, SK, Grounded Lithium also reports 74 mg/L. Arizona Lithium says they have up to 172 mg/L at Torquay. Hub City Lithium says it has concentrations of up to 259 mg/L at Viewfield (Stoughton). From Canadian Press: Alberta enters global lithium race with opening of first extraction pilot project.
A geologist I know once told me “All things being equal, Alberta has better rocks (than Saskatchewan).” Perhaps that’s true for oil, but it could be the inverse for lithium. Time will tell.
And from the Associated Press – Apparently the Germans figure they can get rid of fossil fuel heating. This, in a nation that doesn’t get much sun or wind, but had been building solar and wind facilities like crazy while shutting down all its nuclear plants. To quote C-3P0, “This is madness!”
Are the federal Clean Electricity Standards, brought in by Steven Guilbeault and Jonathan Wilkinson, impossible to meet? Pipeline Online asked SaskPower.
“The CER would require SaskPower to effectively rebuild our entire power system, through retiring the majority of our existing generating units and replacing them with new, ultra-low emitting units or non-emitting energy sources, while also growing the system to support expanding electricity needs that are expected to support growing demand for clean electricity for industrial needs, transportation, increased customer participation and other needs.”
Also, in last week’s Crown mineral rights land sale in Saskatchewan, one, singular exploration permit went for over $6 million. The last time I saw numbers like that for one piece of land was like during the Bakken boom of 2008. It’s simply unheard of in the last 15 years to see a single parcel, even an exploratory permit, go for that much. In recent years, we’d be lucky if a few dozen leases, combined, would make up a total of $6 million. So this is verrrrry interesting. It was near Kindersley, by the way.
Clean Electricity Regulations released: carbon capture needed for continued fossil fuel power generation. #Saskatchewan will not “defy the laws of thermodynamics,” says Premier Scott Moe.
I still need to dig deep into this. I’ve sent a list of questions to SaskPower and the provincial government seeking response next week, as this dropped just as we’re packing to head to the cabin. Because of course they would release it during the dog days of August.
Note: these regulations expect the electrical grid demand to grow by 2.5x in 26 years, three months and 21 days. Good luck with that. Expect a column next week.