Tag: co2

Enbridge’s CEO has a lot to say about Canada’s lack of LNG development

It’s almost as if he’s making a business case for LNG. Imagine that. You know, the same thing the prime minister said there was no business case for? This is the verbatim speech he gave on Friday in Toronto.

Energy Transition Podcast Ep. 84: Coal is back – in fact, it was never gone.

Here’s something new – the Kindersley area took over half the dollars in the Crown petroleum right land sale last week. That’s highly unusual.

And, of course the Just about but not quite complete TMX pipeline will desecrate a sacred site.

A farmer, a pump shop manager and a superintendent walk into a liquor store …

Getting caught up on some energy items from Pipeline Online:

Letter to the editor on why activity levels are so low in the Saskatchewan oilpatch

“How low?” you ask. Just 29 drilling rigs working in Saskatchewan Oct. 3 (10 years ago, that number would have been around 90. During the depths of the downturn, it would have been 40-50.)

Tammy Nemeth’s podcast talks about net-zero red tape for small and medium enterprises in Canada. You think you have paperwork now…

Enbridge’s CEO had a lot to say this week:

Enbridge CEO op-ed on delivering LNG to global markets, reducing global CO2 emissions and supporting energy security. (He did a long speech, which I’ll be posting verbatim, if I have a chance).

Enbridge CEO calls for national Indigenous loan guarantee program so they can buy into energy projects, like pipelines.

And what do we need pipelines for when rail works so well? Except for when it doesn’t. Undetected broken rail causes fiery crude-by-rail derailment.

And for something completely different: A farmer, a pump shop manager and a superintendent walk into a liquor store … and buy it. No joke.

The impact of CO2-enhanced oil recovery is huge

It turns out that carbon dioxide-enhanced oil recovery is more significant than even I thought, and I’ve been writing about if for 15 years. It accounts for a huge number of the top 100 conventional oil wells in Saskatchewan. Huge. And it proves out the significance and importance of CO2-EOR. Imagine what we could do across Saskatchewan with access to a lot more CO2? That’s going to have to be a column, methinks. 

Also, oil is over US$90/barrel for the first time in quite a while. That’s going to be pretty important for Saskatchewan, as I was made aware today that potash prices have tanked. They are down by half year over year.

Poilievre will push LNG, SMRs, hydro dams and continued oil production

Pierre Poilievre. Screenshot from YouTube

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.

Steven Guilbeault. Screenshot from CPAC

 

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!”

 

9 times in 3 weeks: how many times Texans have been warned the lights might go out

Supper in Texas on Wednesday: for the 9th time in 3 weeks, the lights are in danger of going out due to high temperatures and low wind power generation.

Well, that’s what I initially wrote. Then the Texas grid literally went into “red alert,” as the frequency started to drop and reserves fell perilously low. If the frequency goes too low, generating plants would start to trip off in cascading failures, leading to massive blackouts. Thankfully, they got it under control.

Also: Pipeline Online editor Brian Zinchuk on John Gormley Live talking about oil prices, drilling activity, carbon capture, grid alerts, and dramatically more nuclear power generation possible in Saskatchewan.

And if you missed it, Enbridge snapped up three natural gas utilities in the US. Funny how they’re spending big money in the US, but not Canada…

 

SaskPower and Whitecap strike deal on CO2 sale and purchase

Good news for Weyburn Unit, Whitecap, SaskPower, Weyburn and Estevan:

Whitecap Resources to buy CO2 from SaskPower until 2035, providing market for SaskPower’s BD3.

I did some in-depth analysis on the broader picture on all this, especially how carbon pricing in the US and Canada affect the economics.

Remember, the CO2 is used for enhanced oil recovery, dramatically extending the life of an oilfield that has now been producing over 65 years. And FYI, my kid found work with a oilfield company that’s worked in the Weyburn Unit for 62 years, give or take. I hope she can make a career there as a heavy duty mechanic.

A while ago I pointed out on Gormley that lower oil prices were definitely going to have an impact on Saskatchewan’s finances. I was right, as finances are down a half billion from budget.

Also, the feds just dished out $30 million for 1500 EV chargers in Quebec. Because of course they did.

So let’s see here, the federal government, with our tax dollars, have dished out money for EV manufacturers, battery plants, rebates on the EVs themselves, and now chargers. Is there anything they’ve missed? Maybe you get a car! And you get a car! Might have to do a column on this.

And, on the topic of the feds, after slow walking its construction for years, all of a sudden there’s a serious panic to get the Trans Mountain Pipeline complete and operating. Well, from what I understand, good luck with that.

Demanding the impossible on power generation

Boundary Dam Unit 3 capture plant. Photo by Brian Zinchuk

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.”

Clean Electricity Regulations released: carbon capture or bust

Steven Guilbeault, Minister of Environment and Climate Change, Julie Dabrusin, Parliamentary Secretary to the Minister of Natural Resources and the Minister of Environment and Climate Change, Luke Barber, Chief Operating Officer, University of Toronto and Scott Hendershot, Senior Manager, Sustainability Office, University of Toronto, standing together on a rooftop covered in solar panels. Government of Canada handout

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.

Seeing the other side’s playbook – Project of the Century

Ever want to see the other team’s playbook? Project of the Century (report link)– the most comprehensive discussion of energy transition we’ve seen to date, was published by the Public Policy Forum. It’s principally about doubling the electrical grid, or more, but doing so without increasing fossil fuel emissions. The dollar figure is up to $1.7 trillion – with a ‘t’ – mostly from federal taxpayer dollars.

Here’s the story on it:  https://pipelineonline.ca/project-of-the-century-the-most-comprehensive-discussion-of-energy-transition-weve-seen-to-date/

This is the closest I’ve seen to what the federal Liberal government is trying to accomplish with the “energy transition.” Some of Natural Resources Minister Jonathan Wilkinson’s speech and discussion in Regina and Kipling at the end of June was almost word for word from this paper, before the paper was published.

This has huge implications for Saskatchewan and Alberta. Part of the interview focuses on how net zero by 2035 is impossible.

I spoke to the CEO and one of the authors on July 26. Here’s the in-depth interview. I’ll next be posting an analysis by Jim Warren on this, then likely one of my own.

Editor’s note: Pipeline Online has requested permission from the Public Policy Forum to publish the entire Project of the Century report, in serial form. That permission has not yet been granted, despite the Public Policy Forum’s webpage copyright notice stating, “The Public Policy Forum encourages interested parties to use, in whole or in part, its publications, data, images and other content to further dialogue on public policy in Canada. We require that the PPF is properly cited and acknowledged. In all instances, the PPF would like to be notified of the use of its publications and data.”  

They won’t give me a straight answer as to why they won’t let me publish it, when that is clearly their policy. Wonder why that is?

Update Aug. 8, 2023, 10:30 a.m. Since Pipeline Online made the above request, Public Policy Forum has updated its copyright notice. It now states, “Copyright – The Public Policy Forum retains copyright of our publications. For permission to publish a report excerpt, please contact us at: ppforum@ppforum.ca

Something’s not right here with this Greenland core

Camp Century was ice free a lot more recently than was previously thought. Google Earth

So back when the US military was trying to make an ice base like the Planet Hoth from Empire Strikes Back (really happened, 20 years before the movie), they drilled an ice core and hit paydirt. Someone finally got around to looking at that dirt, and it has some startling revelations about the Greenland ice sheet. And when you add that up with what CO2 levels were, something does not jive. And then the mental gymnastics by the media and researches around this are even more entertaining.

Perhaps the science isn’t settled, after all?

How about more carbon capture?

That’s a whole lot of PhD students at Boundary Dam. Photo by Brian Zinchuk

Open letter: CCS is needed and ready to address climate change. This is from the Regina-based International CCS Knowledge Centre.

In response to some of the comments yesterday – carbon capture, as practiced in Saskatchewan, actually has a substantial benefit besides whatever climate issues one might be concerned about. The Weyburn Unit, one of the largest and most prolific oil plays in this country, has been in operation for 65 years. If it had no CO2 injection, it would probably be producing around 6,000 barrels per day. It’s currently doing around 24,000 as a direct result of CO2-enhanced oil recovery. That’s a gain of around 18,000 bpd. At $75/bbl., that’s about $1.3 million per day in gross revenue. It means hundreds of jobs in Weyburn, including my daughter, who started working as a heavy duty mechanic apprentice for an oilfield service company which has been working in the Unit for 62 years. If the CO2 continues to flow, that oilfield is expected to continue on likely for her entire career, if she stays there.

This can be applied on a much broader scale, dramatically extending the life of any oilfield it is applied to. CO2 increases recovery factors from around 20% to 40%+.

Just pumping CO2 into the ground – that’s another story.

Those carbon capture people keep coming back to Saskatchewan

That’s a whole lot of PhD students at Boundary Dam. Photo by Brian Zinchuk

Why? Because we are the leaders, worldwide. Every second year the IEAGHG summer school returns to Regina and Estevan, because we’ve got the most significant, commercial-scale carbon capture facility on a coal plant in the world, and we’ve learned a lot from it. That’s from the general manager of the IEAGHG.

Say what you want about carbon capture and storage, but Saskatchewan’s a big deal in this field.

I also asked him about when the glaciers covered Canada, and it wasn’t my SUV or the two coal fire power plants near my house that caused them to melt.

Did the feds just blink on natural gas-fired power generation?

Jonathan Wilkinson near Kipling. Photo by Brian Zinchuk

The Clean Electricity Standard discussion paper, released a little over a year ago, says, “A Canada-wide CES will complement carbon pricing by requiring the phase-out of all conventional fossil fuel electricity generation.”

And “Regulations to limit fossil fuel generation must be decisive and swift enough to prevent locking in new fossil fuel infrastructure that will persist beyond 2035.”

Also “As natural gas currently plays a critical role in the electricity sector by providing fast-response power, exploration of the continued operation of natural gas assets in special circumstances may be needed. This includes providing flexibility to essential uses of natural gas, such as for emergency events, back-up power to complement variable renewables, and potentially supplying power during seasonal peaks of demand.”

But I asked federal Minister of Natural Resources about this twice between Wednesday and Thursday, and got a different response. He appeared to be open to the continued usage of natural gas power generation, as long as it was coupled with carbon capture. This is a huge deal for Saskatchewan and Alberta, but means expensive CCUS schemes. It could also have national unity implications. Steven Guilbeault even threatened Scott Moe with jail time.

He even said coal with CCUS would be allowed.

Did the feds just blink?

And note: the morning of Wednesday, Alberta’s 3618 megawatts of wind power was producing 3, less than one-tenth of one per cent.

The “just transition” report is nothing short of the utter transformation of Canada

Entitled “Creating a Fair and Equitable Energy Transformation,” The 56 page report outlines nothing short of the utter transformation of Canada, its economy and workforce, by way of transitioning away from fossil fuels to a largely electric economy, with the possibility of hydrogen usage as well. In doing so it means to largely do away with the fossil fuel industry which is one of Canada’s largest industries and contributors to GDP, exports and wealth. The report provides recommendations as to what to do with the people involved in that industry, but not so much the companies who employ them, create those jobs or that wealth.

On Thursday, I’ll have the detailed Conservative response from MP Shannon Stubbs.

About that just transition…

Late on Monday the federal Natural Resources Committee released its final report on the “just transition.” Pipeline Online will have several stories on it over the coming days, but the first is the verbatim 19 recommendations by the committee. Both the Conservatives and Bloc issued dissenting reports.

One of the things all this just transitioning is all about is switching from coal, oil and gas to wind and solar. Well, today, the day before the solstice, solar power in Alberta at noon was producing half its rated capacity.

The world comes to Saskatchewan to discuss carbon capture international standards

Bob Van Voorhees represented ANSI and the United States. Photo by Brian Zinchuk

The irony is the current federal government wants to shut this all down, because coal is evil.

In the meantime, Saskatchewan – Regina, Estevan and Weyburn – showed off its decades of experience to worldwide experts on carbon capture, utilization and storage as they set international standards for the same.

Cenovus CEO: Without cheap, abundant, affordable energy, life is brutal. Life is short

The new CEO of Cenovus, Canada’s second largest oil producer and Saskatchewan’s largest (after they bought Husky during the COVID pandemic), tells it like it is. There’s a healthy dose of reality in his comments, but Cenovus is also leading the charge for carbon capture in the oilsands. He also likes the idea of nuclear reactors usage in the oilsands.

Quick Dick McDick tells Steven Guilbeault to get bent

Saskatchewan’s own Quick Dick McDick offers his take on federal Minister of Environment and Climate Change Steven Guilbeault. He talks about the implicit threat of criminal sanctions for keeping the power on, and how Guilbeault should know a thing or two about wearing handcuffs. Quick Dick picks up on a lot of the stuff I’ve been writing about recently.

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