Story of the Week: April 2022

Fossil Fuel Divestment Decisions Prove Costly, Ill-Timed by Ira Stoll Appeared in The New York Sun on April 18, 2022 Gina's Thoughts "How's that fossil fuel divestment going?" The columnist asks this question first and foremost in the article and answers it by writing, "At the moment, having done so looks foolish, or at least ill-timed, for some of the endowments and pension funds that had announced their decisions with considerable fanfare." Fanfare to accompany the claim that divesting from fossil fuel companies will combat climate change, when in fact, divestment does nothing to reduce emissions. Yale University's endowment fund, the Ford Foundation's endowment fund and the New York state pension fund all made divestment announcements in 2021 citing that investing in oil and gas companies posed significant risk to investors. All of the oil sands companies that the New York state pension fund divested of have had triple digit returns since the divestment announcement was made. I guess the risk of not being able to fund the pensions of New York state and municipal workers is not as great a risk as climate change?

There's no time to waste-- the world needs Canadian energy now by Eric Nuttall Appeared in the Financial Post on April 12, 2022 Gina's Thoughts "Unless meaningful action is taken on the energy supply crisis, the result will be energy poverty and all-time high oil prices." The author writes that "to the civilized world, purchasing energy from Russia is no longer politically palatable and this will have profound impact on energy markets for years to come. Russia, the world's second-largest oil exporter, will likely be starved of both capital and technical know-how after numerous super majors have announced their exit and the three largest oil service companies pledged no further work in the country, challenging its ability to maintain productive capacity." The phrase "starved of capital" is apt when you consider that divestment proponents are doing their very best to starve Canada's oil and gas sector of capital and investment. Canada has the resources and the opportunity to replace Russia as the free world's oil and gas supplier. Canadian oil and gas companies have "global leadership in all things related to environmental, social and governance". What's missing from the equation is sound and Canada-friendly government policy to enable Canada to capitalize on their energy resources that the world so desperately needs right now.

You'll Miss Fossil Fuels When They're Gone by Allysia Finley Appeared in The Wall Street Journal on April 4, 2022 Gina's Thoughts "What would a world without oil and gas look like? We’re getting a preview: surging prices for food and other everyday goods. Oil and natural gas aren’t needed to only generate energy. They’re also critical for an array of products including face masks, diapers and vegan leather." So begins the column that goes on to write about the many, many ways we rely on oil and gas beyond the generation of energy. From fertilizer, plastic food containers and packaging, shopping bags, water bottles, catheters, bulletproof vests to iPhone cases, fitness apparel, appliances, medical sutures, furniture and asphalt. And this list just scratches the surface. The columnist calls petrochemicals "ubiquitous and indispensable" which they most certainly are and I would suggest adding "irreplaceable".

To save democracy, ship our gas by William Watson Appeared in The Financial Post on March 29, 2022 Gina's Thoughts If the oil and gas that society wants and needs is not provided by Canada and Canadian companies, it will come from state-owned suppliers from such countries as Saudi Arabia, the Gulf States, Iran and Russia. We are seeing this play out in real life today. Columnist William Watson wants Canada to ship our gas to Europe to save democracy believing that if Europe becomes less dependent on Russian energy, they can be more aggressive in their support of democracy. Watson references an open letter to the Prime Minister from the Canadian Gas Association which states, “Canada has hundreds of years of natural gas supply, robust infrastructure, and industry expertise that meets the highest standards of corporate and environmental performance. We can do more for Europe and the world, and we want to. We are prepared to work with the Government of Canada on a plan to address global energy security and bring Canadian gas energy to those who need it.” However, Watson goes on to write: "Unfortunately, if your political platform is Green Net Zero, you have real trouble doing anything that appears to slow the transition away from fossil fuels. Stubbornly refusing to allow Canadian gas to replace Russian gas, even in devoutly green Europe, would be like refusing to use an effective COVID vaccine because Big Tobacco held a minority share in the company that developed it. It would be rigid, blinkered, “ideological” thinking of the kind the government supposedly disdains, preferring instead to make evidence-based decisions." It is time to follow the evidence and get more of Canada's oil and gas out to Europe and be a supplier of choice for Europe's energy demands.