Build Back Biden

Want to know why gas prices are so high? The Daily Signalthe publication of the Heritage Foundation, has prepared this short video to explain it all for you.

On his first day in office, President Joe Biden revoked the Keystone XL pipeline permit via Executive Order 13990. With the stroke of a pen, Biden canceled a project that would have boosted U.S. gross domestic product by more than $3 billion, carried 830,000 barrels of oil daily from Canada to the United States, and directly and indirectly provided up to 26,000 jobs—11,000 of which were instantly lost.

Climate czar John Kerry lent a sympathetic voice to the plight of the newly laid-off workers: “Go to work to make the solar panels.”

At least there's no more mean tweets!

Higher Prices? Ho Ho Ho, Yes

During a recent White House briefing, Energy Secretary Jennifer Granholm was asked by a reporter how much oil is consumed on a daily basis in the U.S. She was outlining Biden’s strategy to release of 50 million barrels of oil from the U.S. Strategic Reserves. By adding to the national supply of oil, goes their thinking, "adequate supply" can be maintained amid global shortages and increasing gas prices. However, there are a couple problems with their ill-conceived strategy.

Granholm was  unable to answer the reporter’s question, instead insisting that she would need to check the number. What everyone already knew is that the amount the administration is seeking to release from the U.S. Strategic Reserves represents about 2.6 days of added supply… hardly a game changer in a supply constrained market.

It will take a lot more than a press conference and a paltry 50 million barrels of oil to repair the economic damage brought upon America by this administration’s policies. Joe Biden’s policies have been devised to create oil and gas shortages, thus ensuring higher prices for consumers, and moving toward parity with wind and solar sources. It is a strategy the Left has been working on for years, and one they unleashed upon this country within hours of taking office. It is the reason America is now experiencing inflation, supply chain pressures, and economic malaise.

Dress warm this winter!

Charged with regulating the oil and gas industry, the depth of Granholm’s ignorance about how the industry she regulates works, is surpassed only by her lack of understanding of the economics of oil and gas. Up until the Biden administration's war on the oil and gas industry, the men and woman of the industry have achieved countless efficiencies through technological innovation that have repeatedly overcome industry challenges and difficult market conditions. Reliable, inexpensive energy after all is the backbone of any robust modern economy.

Granholm's jaw-flapping was further punctuated by her attempt to blame the oil and gas industry for supply shortages that her administration has worked hard to create. Asserting that oil and gas companies are simply trying to make lots of money, Granholm revealed the second problem with her strategy.

The supply and demand curve is one of the most basic concepts in economics. Almost immediately upon entering office, the administration and its surrogates began working to disassemble the infrastructure that until their arrival had delivered inexpensive energy to all corners of the country and overseas. Offering up "climate change" and institutional racism as the cornerstones of their destructive strategy, the administration has diligently worked to increase the price of oil and gas by attempting to remove the systems in place that inexpensively distribute oil and gas. Consider their impact in less than one year.

Hope they don't fart.

But the administration went even further. They engaged multiple other agencies to harangue businesses outside the oil and gas industry. The Pipeline and Hazardous Materials Safety Administration -- part of Pete Buttigieg's crack Department of Transportation -- will push utilities and gas companies to "fix" leaks in natural gas distribution lines. The Department of Agriculture will be forcing farmers and ranchers to reduce methane emissions from manure, and the Department of Energy recently launched a program to force the adoption of heat pumps and induction stoves to reduce the need for natural gas inside homes and apartments. The Bureau of Land Management is planning to charge companies royalties for any gas that is vented or flared on public lands. One need not be an economist to understand that the heavy-handed regulatory maneuvering being undertaken by this administration will increase the price of oil and gas, and just about everything else.

So while Secretary Granholm touts the need for less expensive gas, perhaps the most obvious place to look is inside her own administration. Repeatedly devising plans, and launching initiatives intended to hamper the markets and diminish economic activity, will deliver higher prices to all. Merry Christmas America.

At the Pump, Grasping at Straws

Score one for Joe Biden and the Democratic Party:

As the official twitter account of the Democratic Congressional Campaign Committee shows above, Joltin' Joe has successfully turned around the elevated gas prices that have been bedeviling his administration and dragging down his poll numbers. Looks like smooth sailing ahead, perhaps with an increased seat count in the upcoming mid-terms! Might as well call off the 2024 election, because Biden already has it in the bag.

Except... if you look a little closer at this chart, maybe it isn't all that impressive. First of all, the Y axis isn't showing price changes in dimes or even pennies. It's showing them in fractions of cents. Consequently, in the two weeks depicted in the graph above, the average price of gasoline went down by all of two cents. Which is to say, almost not at all.

Apparently what happened here, as Abigail Marone helpfully illustrates on Twitter, is that heterodox liberal commentator Matt Yglesias sarcastically tweeted out the above graph (sans numbers) with the comment "Gas prices steadily falling since Biden signed the infrastructure bill and fixed inflation." White House Chief of Staff (and de facto president) Ron Klain saw the tweet and, assuming it was legit, liked it and fed it to the DCCC as if it actually meant something. Which it doesn't.

All of which is to say, 1) We're led by idiots who, 2) Can't understand graphs or statistics (cf. our national Covid response), and 3) as the 2024 elections near, the Dems are getting desperate.

Biden's Blame Shifting Comes for Big Oil

Despite being cagey about the topic on the campaign trail, Joe Biden went all in on environmentalism immediately upon entering the White House. Desperate for the approval of the climate crowd, the president killed the Keystone XL pipeline project on his first day in office, rejoined the Paris Climate Agreement, and enacted a moratorium on oil and gas leases on federal land, all to squeals of delight from environmental activists worldwide.

Fast forward a few months and we're in an energy crisis. Now, Biden's green policies aren't solely to blame -- these are complex problems, and pandemic-related disruptions (which can themselves be blamed on the government, at least in part) are probably the bigger culprit. Still, they're making recovery harder than it needs to be.

What's more, it's no coincidence that the rising cost of fuel -- currently at a seven-year high, and expected to keep climbing -- tracks very closely with the president's tanking poll numbers. That collapse at the polls contributed to one Democratic candidate losing the Virginia gubernatorial race and another nearly losing in deep-blue New Jersey, and in the wake of those warning shots Biden's partisans have really started to panic. If things keep on this trajectory, next year's midterm elections are going to be devastating for their party, making the 2010 midterms, which saw the GOP pick up seven senate seats and 63 in the House, pale in comparison. At least in 2010, Barrack Obama was personally popular, even if his agenda was not. Joe Biden has neither going for him.

So Biden is desperate to turn things around. A month ago that meant begging resource companies to lower prices.

That didn't work -- shocker -- because that's not how markets work. So his administration has changed tactics. Their new plan is to open an investigation into the oil and gas industry for "anti-consumer behavior."

President Biden is asking the head of the Federal Trade Commission (FTC) to look into whether oil companies are illegally increasing prices as consumers face high costs at the pump. "The Federal Trade Commission has authority to consider whether illegal conduct is costing families at the pump. I believe you should do so immediately," Biden wrote in a letter to FTC Chairwoman Lina Khan on Wednesday.

As Luke Thompson put it, "This is vintage Biden. Create a problem. Blame others. Then try to demagogue the issue to avoid accountability." "Fortunately," Thompson continues, "his polling suggests Americans see what’s happening."

The truth is, the Biden administration's environmental actions fall neatly into the very category of "anti-consumer behavior" he's accusing the resource sector of engaging in. We'd be better off if he would change course, open the taps, build the pipelines, grant the leases. That is, steer the ship of state back towards energy independence, and not fret so much about what AOC and the Green New Dealers have to say. (By the way, they're likely popping champagne at the moment, as they did mid-pandemic when the price of oil went negative, a blow from which the industry is still recovering).

But chances are he'll just keep looking to shift the blame.

Enemies of the People: Let's Go, Brandon!

Renewables: Is There Anything They Can't Do?

From the Wall Street Journal:

Natural gas and electricity markets were already surging in Europe when a fresh catalyst emerged: The wind in the stormy North Sea stopped blowing. The sudden slowdown in wind-driven electricity production off the coast of the U.K. in recent weeks whipsawed through regional energy markets. Gas and coal-fired electricity plants were called in to make up the shortfall from wind. Natural-gas prices, already boosted by the pandemic recovery and a lack of fuel in storage caverns and tanks, hit all-time highs. Thermal coal, long shunned for its carbon emissions, has emerged from a long price slump as utilities are forced to turn on backup power sources.

The episode underscored the precarious state the region’s energy markets face heading into the long European winter. The electricity price shock was most acute in the U.K., which has leaned on wind farms to eradicate net carbon emissions by 2050. Prices for carbon credits, which electricity producers need to burn fossil fuels, are at records, too... At their peak, U.K. electricity prices had more than doubled in September and were almost seven times as high as at the same point in 2020. Power markets also jumped in France, the Netherlands and Germany.

So the transition to so-called renewable energy has really been raking European energy markets over the coals. Literally, in fact, as coal-fired power plants are having to increase production to meet energy demands. And it's making Russia into a one nation OPEC, the only country in the region with an excess of natural gas which will happily export it.... for some significant diplomatic concessions.

Quite the bind the E.U. finds itself in. Perhaps they might consider changing course, accepting that shutting down their natural gas and nuclear power plants, not to mention banning fracking, is a mistake?

Doesn't sound like it! Reuters --

Record high power prices in European Union countries show the bloc must wean itself off fossil fuels and speed up the transition to green energy, the EU's top climate change official said on Tuesday.

That official -- first vice-president of the European Commission Frans Timmermans, who has appeared in these pages before, always singing the same one-note tune -- argues that, in fact, it is because they haven't transitioned quickly enough that things are so bad! "Had we had the Green Deal five years earlier, we would not be in this position because then we would have less dependence on fossil fuels and on natural gas," he said.

Never mind that the transition itself helped create the shortage by causing a shortage of the fuels that, for the foreseeable future, the continent continues to run on. That, and the fact that the wind doesn't always blow and the sun sometimes fails to shine.

Anyway, you heard it from Frans first -- renewable energy causes problems that can only be solved by... more renewable energy. Is there anything it can't do?

The Colonial Pipeline Experiment

Here's some good news -- after several days offline, due to a ransomware attack by Russian hackers, Colonial Pipeline is back up and running as of Wednesday evening. And sooner then expected -- the initial estimates suggested that it might not be able to be restarted until this weekend. This has led to some questions about whether Colonial (perhaps with some encouragement from the Feds) simply paid the hackers' ransom demand. CNN says no, they just beat the hackers with an assist from the FBI, but Bloomberg is reporting that that's exactly what they did:

Colonial Pipeline Co. paid nearly $5 million to Eastern European hackers on Friday... The company paid the hefty ransom in untraceable cryptocurrency within hours after the attack, underscoring the immense pressure faced by the Georgia-based operator to get gasoline and jet fuel flowing again to major cities along the Eastern Seaboard, those people said. A third person familiar with the situation said U.S. government officials are aware that Colonial made the payment.

Either way, this is an embarrassment for the Biden Administration, but allowing (maybe encouraging) an American company to pay a ransom to Russian cyber terrorists would be hard to come back from. Still, Joe must not have liked the prospect of gas lines -- that totem of Carter-era malaise and harbinger of the Reagan revolution -- lasting more than a few days.

Even so, this crisis won't be ending immediately. Colonial has said, "it will take several days for the product delivery supply chain to return to normal," meaning that souring prices, panic buying, and even rationing are probably going to be with us in the affected states for at least a week.

On the bright side, this is about as close as we can get to a controlled experiment. It would be wildly irresponsible to shut down a pipeline just to spite our obnoxious anti-pipeline protestors and the limousine liberals who fund them. But to see those same liberals sitting in their limousines (or SUVs more likely) in northern Virginia waiting their turn to fill their tanks (and maybe a few plastic bags) with gas? Priceless. Here's hoping the Canadians are watching how this is playing out.

Perhaps the headache will even cause Biden to rethink a few of his own green commitments. As Kyle Smith reminds us,

If Biden himself were not on record as being himself a fan of shutting down fuel pipelines — Keystone XL not only was a menace to our American way of life by bringing us energy, Biden thought it had to be cut off before his first afternoon nap — this brewing crisis wouldn’t be so potentially damaging to him. Biden is an ardently pro-fuel-limits guy in a moment when fuel is limited. As one of his other first acts in office — “Let’s own Trump by endangering our energy future” — he also banned new fracking leases on federal land. Maybe it would be nice to have more energy supply rather than less given what’s happened since?

Don't hold your breath.

Canada: Never Let a Good Crisis Go to Waste

Last week I wrote about the fear among Democrats that the U.S. might be heading for a significant economic recovery before the election in November, such that the Trump campaign would be able to point to "the most explosive monthly employment numbers and gross domestic product growth ever" (in the words of Obama Administration senior advisor Jason Furman), and ride that good news to reelection. Well, yesterday morning we all woke up to news which suggests that that upward trajectory might be beginning. After months of catastrophe, with Great Depression-like unemployment figures, the May jobs report showed that the economy added 2.5 million jobs in that period, the most ever in a single month.

The news was so surprising that left-wing rags like the Washington Post had to frantically delete their pre-written tweets about how terrible the report was:

Of course, we aren't out of the woods yet. An unemployment rate of 13 percent is still pretty bad, even if things are heading in the right direction. And, as I argued last week, Joe Biden's willingness to squander our gains on his ideological program (or that of his advisors while he naps in the Lincoln Bedroom), including his announcement that he would definitively kill Keystone XL  pipeline upon entering the White House, should make us all wary about trusting him to save the economy.

Well, up in Canada we can see what it looks like to have people already in power whose instincts are invariably ordered toward ideology over job creation or the cost of living. We've already covered Trudeau's doubling the nation's carbon tax during the pandemic, a decision which ran counter to what basically every other nation in the world was doing. We also discussed his oil and gas aid package, which seemed ordered towards the end of an industry which accounts for roughly 10 percent of Canada's GDP.

This is the path Trudeau has committed his nation to, and it doesn't seem like it is going to slow down anytime soon. Dan McTeague, president of the indispensable Canadians for Affordable Energy, has been writing recently about the return of Justin Trudeau's college drinking buddy, Gerald Butts, who grew up to be an environmental activist, director of policy for then-Ontario premier Dalton McGuinty, and eventually Trudeau's chief adviser. Butts, you may recall, was forced to resign in the run up to the 2019 election for his role in the SNC-Lavalin scandal.

Now that that election is over, McTeague reports that Butts is back in Ottawa serving on a new task force called Resilient Recovery. "The task force," explains McTeague, is "made up of green industry and environmental leaders [and] says its goal is to help seize a "once-in-a-generation" opportunity to build things in a “better” way post the COVID-19 pandemic." If you guessed that that means taking advantage of a crisis to get Canada even more entangled in the Green Energy industry than it already is and make it harder for oil and gas companies to operate, you win.

Butts: I'm ba-ack.

In the course of two articles, McTeague argues that Canadians should be aware of, and concerned by, this "green energy at any and all costs" task force, and especially by Butts' inclusion in it. Butts has the ear of the prime minister and a history of making life harder for Canadians. McTeague has taken the time to remind us of that history. In his first piece, he examines Butts' work in the McGuinty government in Ontario:

Gerry Butts is known as one of the architects of Dalton McGuinty’s disastrous Green Energy Act. The GEA hurt Ontarians (and is still hurting them), resulting in energy bills increasing by 70% from 2008 to 2016. Ontario’s claim to fame became its high energy rates - the highest in all of North America. Big manufacturers across the province began to flee for friendlier economic climates. Even former premier Kathleen Wynne said in her 2018 campaign that because of the Green Energy Act many families were having to choose between paying their energy bills and feeding their families.

The GEA originally promised the creation of 50,000 green energy jobs. The government later admitted that that number was not based on any formal analysis, that many of the jobs would be temporary, and that it did not account for the lost manufacturing jobs due to the increased energy prices. Wind and solar were incredibly expensive to produce... and the consumer was the one who had to make up the difference. How? Through a hidden tax euphemistically called the Global Adjustment Fee which suddenly started to appear on Ontario energy bills. A Global News article from 2016 stated that for every $100 in usage that appeared on your bill, $23 was actual electricity cost, while the other $77 was from the “Global Adjustment Fee”.

After a few years out of government, Butts jumped onboard the Trudeau train after the Liberals won their majority in 2015, and brought his wealth of experience making everyday life more expensive for Ontarians to Canadians more generally. That part of his career is covered in McTeague's second piece:

The costs of Butts’ climate agenda are apparent in the policies that the Trudeau government put in place during its first term, the most important (and destructive) of these being the carbon tax. It is no surprise that the mastermind behind the Ontario green energy debacle would help create expensive and ineffective policies at the federal level. The carbon tax adds at least 7 cents per litre of gas at the pump for Canadians. Because it applies to all energy sources, the hidden costs – on food and services and our competitiveness – will be even greater, and the carbon tax will increase annually by large increments.

Other expensive and anti-industry policies that were launched during Butts’ time in Ottawa include Bill C-69 (an overhaul of Canada's regulatory and resource project approval system) and C-48 (the oil tanker moratorium act). These have meant significant new and unnecessary regulatory burdens that restrict resource development, drive away investment, and have the effect of making energy more expensive.

Though Canada's May jobs numbers crept up somewhat, just like America's, Canada is still experiencing record unemployment. Bombardier just announced that they'ree laying off 2,500 workers. This is still a time of crisis, and for any recovery to be really resilient, it needs a laser focus on getting people back to work and getting the economy back on track. Gerald Butts' resumé speaks to the fact that he is more than willing to prioritize environmentalist virtue signalling over the benefit of ordinary Canadians.

'The Earth is Healing Itself'

I've already mentioned the disturbing phenomenon of environmentalists celebrating the real suffering we're seeing all around us right now. By some measures, we're approaching Great Depression-level unemployment numbers (though it is encouraging to note that the vast majority of those who've lost jobs at least believe that they'll get them back soon), and the Greens are out there celebrating the attendant fall in carbon emissions, even worrying that they'll rebound once the economy gets going again.

One ridiculous enviro-meme popping up around the internet lately has people sharing a picture of some beautiful scene -- a blue sky, a mountain, an empty beach -- along with the comment "The Earth is Healing." Of course, this trope is at once so smug and sentimental that mockeries of it likely outnumber the originals at this point:

As the lockdowns start to ease (whether governments want them to or not),  I've actually caught myself muttering "The Earth is Healing itself" with a half smile whenever I've noticed local traffic at roughly normal levels. I was reminded of that when I read this WSJ report on the increased consumption of gasoline throughout the country:

Americans are starting to get back behind the wheel, welcome news for the companies that turn oil into gasoline and diesel. Fuel makers including Valero Energy Corp. and Phillips 66 have said they expect gasoline demand to continue to rebound after plunging to roughly half of normal levels in early April, as states reopen from lockdowns imposed to limit the spread of the new coronavirus.

As a result, some refiners are looking to produce more gasoline again after choking back output in recent weeks. Such a move should help keep prices at the pump low for longer. Regular gasoline averaged about $1.80 a gallon in the U.S. on Thursday, down from $2.89 a year earlier, according to the price tracker GasBuddy. “People have been cooped up, they want to drive,” Phillips 66 Chief Executive Greg Garland told investors recently, offering a glimmer of hope as the largest U.S. refiners posted their worst quarterly earnings in years....

Fuel makers typically do well when oil prices are low because people drive more. But the recent oil-price crash has largely been driven by a rapid decline in demand as people stay home and travel less to avoid contracting Covid-19. That means the second quarter is expected to be grim for refiners, too. Nevertheless, fuel makers were generally optimistic about an eventual recovery in appetite for their products, saying they think gasoline consumption will continue to climb, even as people remain wary of getting on an airplane.

There are a few Karens out there who will tell you that it's a bad thing that more people are driving, that any time you go outside you risk killing your grandmother, and that our wise political leaders have ordered us to shelter in place for some very good reasons, so we should listen to them.

Those Karens are, of course, wrong. Being outside during the virus is good. Being indoors all the time will drive you crazy, and anyway plenty of people are being hospitalized with the virus who were staying at home. Better not risk it. Get out, get yourself some cheap gas, take your kids to the park (if you're lucky enough to live somewhere where parks are still open). Delight in the sunshine, but also delight in the knowledge that you're helping the economy -- since gasoline and diesel are made in the same process, and there was a real danger there that, if we ran out of storage space for gas, we'd run low on diesel which fuel delivery trucks, you're helping to preserve America's straitened supply chain.

And if you ever get stuck in traffic, just take a deep breath and remind yourself, "The earth is healing."

Trudeau's Oil Sands 'Relief' a Bust

Back in 2017, Justin Trudeau was speaking at a town hall event in Peterborough, Ont., and was asked about his government's decision to approve an extension to Kinder Morgan’s Trans Mountain pipeline, which seemed in tension with his environmentalist commitments. He replied:

We can’t shut down the oil sands tomorrow. We need to phase them out. We need to manage the transition off of our dependence on fossil fuels but it’s going to take time and in the meantime we have to manage that transition.

This was widely considered to be a gaffe of the Kinsley variety, which is to say the type in which a politician "accidentally reveals something truthful about what is going on in his or her head." Trudeau was acknowledging that somewhere in that woolly brain of his is the desire to shut down Canada's oil sands, the backbone of Canada's western economy, and a key sector of the national economy as well.

The representatives of affected Canadians were compelled to respond. Rachel Notley, whose socialist New Democratic Party was enjoying a rare period in power in Alberta, said, “[Our] oil and gas industry and the people who work in it are the best in the world and we’re not going anywhere, any time soon.” Jason Kenney, who would replace Notley as premier two years later, asked whether Trudeau's "phase-out" meant "he wants to hand-over all global oil production to Saudi [Arabia], Iran, Qatar, et al?" Then-opposition leader Brian Jean replied, "If Mr. Trudeau wants to shut down Alberta's oil sands... he'll have to go through me and four million Albertans first." The pushback was such that eventually -- that is, more than a week later -- Trudeau walked back the comment, saying that he "misspoke," and that he had “said something the way I shouldn’t have said it.”

Fast forward to our present calamity, which has seen Canada's oil and gas industry pounded by a perfect storm consisting of the COVID-19 pandemic and its attendant lockdowns on the one hand, and the Saudi/Russian production war on the other. Back in the middle of March, as the nature of these twin crises was becoming clear, news began to surface about Ottawa's proposed response.

The federal government is preparing a multibillion-dollar bailout package for Canada’s oil and gas sector that is expected to be unveiled early next week, sources say.... [G]overnment insiders are saying little about the details... but the oil and gas sector can expect to get more access to credit, especially for struggling small and medium-sized operations, and significant funding to create jobs for laid-off workers to clean up abandoned oil and gas wells.

One senior Alberta source said the province is expecting Ottawa to provide $15-billion in relief to an industry that has been hammered by the COVID-19 crisis and the price war between Saudi Arabia and Russia that has cratered oil prices and energy-company stocks.

Finance Minister Bill Morneau assured the nation on March 25th that the government understood that "the energy sector is in a particularly challenging situation," and that the rumored bailout was imminent, not "weeks [but] hours, potentially days" away.

Well, not hours or days, but nearly a month later details of the relief package were made public, and they were underwhelming to say the least. Reports of a $15 billion package were off by almost an order of magnitude, as the actual package came to $1.7 billion, largely geared towards environmentalist priorities. Whereas oil and gas representatives had been asking mainly for new lines of credit and an easing of regulations, the actual package earmarked the vast majority of dollars for the remediation of abandoned oil wells and methane-gas emission reduction.

As Grant Fagerheim of Whitecap Resources put it, “This is not going to do anything... If this is as good as it gets, it will do very little or nothing to assist with operations for companies.”

What changed? Well, for one thing, the environmentalists got involved. Around the time of Morneau's pledge, a coalition of environmentalist groups wrote an open letter to Trudeau arguing against such a package, saying

"Giving billions of dollars to failing oil and gas companies will not help workers and only prolongs our reliance on fossil fuels."

They seem to have had an influence. As one oil executive observed to the National Post:

[T]he announcement appeared to adhere closely to Ottawa’s tendencies around environmental messaging, rather than addressing immediate concerns on private sector balance sheets. “I think they made the calculation that it would be politically unpalatable in Ontario and Quebec to provide direct supports to oil and gas."

Of course, Canada's environmentalist groups were elated and were quick to offer praise:

Josha McNabb of the clean-energy think tank Pembina Institute said well cleanups and methane reductions are good steps toward reorienting Canada’s economy toward a low-carbon future. “Those are types of things that are going to lead to an oil and gas sector that is more competitive because it’s cleaner, and also (develop) the kind of expertise that is going to be in demand,” she said.

Even more to the point was the statement put out by Tzeporah Berman of Stand.Earth, which read,

Today, Prime Minister Trudeau made clear that Canada’s bailout package will prioritize addressing the climate crisis and building the cleaner, safer economy we need. This is the kind of leadership the world needs .… This bailout announcement is a major turning point for oil and gas politics in Canada.... [W]inding down the oil and gas industry [is] a hard, but necessary part of achieving [Canada's Paris Agreement climate] targets.

Of course, Trudeau's cabinet is itself brimming with borderline enviro-activists, including Catherine McKenna, Navdeep Bains, and Steven Guilbeault (the latter a full blown activist, who spent ten years with Greenpeace before running for office). None of them needs much pressure -- public or private -- to leave the resource sector out in the cold. No doubt when Morneau said that relief was "hours, possibly days" away, that was based on his perception of the negotiations as they stood at the time. Perhaps he was even trying to hurry his fellow ministers along. But he appears to have gotten ahead of his skis, and in the end the greenies won out.

Furthermore, despite requests from industry representatives, the Trudeau government insisted on going ahead with its plan to double the Federal Carbon tax and merely delayed the implementation of their Clean Fuel Standard by a few months.

“Just because we are in one crisis doesn’t mean we can forget about the other crisis, the climate crisis, that we’re facing as a world and as a country,” said Trudeau.

It must be mentioned that one request from the resource industry was included in the relief package, namely expanding credit availability for small and medium sized energy companies, and there has been talk of further assistance aimed at ensuring that the industry maintains liquidity. There's a good argument for such interventions -- since government ordered lockdowns are a major contributor to the industry's plight, it makes sense that the government would help shoulder the burden while oil and gas companies work their way through this. And it's worth noting that, as the energy sector has contributed more to the Canadian economy over the past 20 years than any other, a lot of that money comes from oil and gas to begin with.

Even so, the core of this package makes plain the Prime Minister's priorities. Weighted as heavily as it is toward capping off old wells, it serves mainly as an instruction to an ailing industry that it had better restructure itself with an eye towards closing up shop for good. Rahm Emmanuel famously advised Barack Obama in 2008 to never let a good crisis go to waste, and Trudeau and his ministers appear to have taken that to heart. Never mind that the resource sector makes up roughly 10 percent of the Canadian economy; that, as this pandemic has reminded us, it contributes the material to make personal protective equipment and ventilators; or that the Green Energy Industry on which they have pinned their hopes has been shown to be a sham. This is their moment. They will not let it pass.