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Canada can increase oil exports to U.S., but won’t be enough to fill Russia gap: experts – Global News

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Canadian oil producers have some capacity to immediately increase exports to the U.S., industry insiders and analysts say, but anything they can provide in the short-term won’t be enough to fill the gap left behind by Russia.

In the wake of U.S. president Joe Biden’s move on Tuesday to ban the import of Russian energy products, some have called for an increased role for Canadian oil and gas.

In Houston, Texas, where he was attending the international energy conference CERAWeek, Alberta premier Jason Kenney said he was spreading the message that his oil-producing province is ready and willing to help the U.S. fulfil its need for energy.

Read more:

U.S. bans imports of Russian oil. Here’s what may happen now

“Instead of replacing conflict oil from Russia with conflict oil from Saudi, Iran and Venezuela, work with us,” Kenney said on Twitter on Tuesday. “Alberta is the solution.”

In recent days, Kenney has also called on Biden to reinstate the approval of the Keystone XL pipeline expansion, which Biden cancelled shortly after his inauguration, in order to increase Canadian oil exports to south of the border.


Click to play video: 'Alberta premier pushing USA to resume Keystone XL expansion'



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Alberta premier pushing USA to resume Keystone XL expansion


Alberta premier pushing USA to resume Keystone XL expansion

According to figures from the U.S. Energy Information Administration, the United States imported almost 700,000 barrels per day of crude oil and petroleum products from Russia in 2021.

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The U.S. imported far more than that from Canada, almost 4.3 million barrels per day.

Tristan Goodman, president of industry group the Explorers and Producers Association of Canada, said this country has the ability to immediately increase that number, either through existing pipeline networks or crude-by-rail shipments.

“There’s an immediate ability to add some degree of production, and I do mean immediate — weeks to months. It will be a small amount, but it will be noticeable,” Goodman said.


Click to play video: 'Russia-Ukraine conflict: U.S. to ban imports of Russian oil, Biden says'



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Russia-Ukraine conflict: U.S. to ban imports of Russian oil, Biden says


Russia-Ukraine conflict: U.S. to ban imports of Russian oil, Biden says

However, Goodman said due to under-investment in pipeline infrastructure and the Canadian energy sector as a whole in recent years, the most Canada could expect to supply would be a maximum of 400,000 barrels per day, “if we’re lucky.”

“Can we help? Yes. Will it be the silver bullet to replace the entire production of Russian crude going into the U.S.? No,” he said.

Read more:

Biden announces U.S. ban on Russian oil imports as Ukraine war rages

On Tuesday, the White House said it has already committed to releasing more than 90 million barrels from its strategic reserves in the current fiscal year, as well as the emergency sale of 30 million barrels just last week.

Members of the International Energy Agency have also agreed to a collective release of an additional 30 million barrels.


Click to play video: 'Trudeau meets with allied leaders to mull cutting off Russia’s oil'



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Trudeau meets with allied leaders to mull cutting off Russia’s oil


Trudeau meets with allied leaders to mull cutting off Russia’s oil

Kevin Birn, a fellow with the Canadian Global Affairs Institute and the chief Canadian oil market analyst for IHS Markit, said the immediate need in the U.S. will likely be filled by inventories, strategic petroleum reserves, and OPEC member nations.

“Canada is able to produce a heck of a lot more oil, but it’s just not going to be able to be the first one to respond to this,” Birn said. “To increase supply on a consistent basis, Canada would need some time.”


Click to play video: 'Russia-Ukraine conflict: UK to stop importing Russian oil, PM Johnson says'



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Russia-Ukraine conflict: UK to stop importing Russian oil, PM Johnson says


Russia-Ukraine conflict: UK to stop importing Russian oil, PM Johnson says

While Canadian oilsands producers have been running at near-capacity so far in 2022, they may look at deferring scheduled maintenance projects this spring in an effort to increase output and capitalize on record high prices, said Richard Masson, executive fellow with the University of Calgary’s School of Public Policy.

“But oilsands projects don’t easily increase production — it takes time,” Masson said.

Where the industry can move quickly, Masson said, is in the conventional drilling sector. But even there, the significant labour shortage that has been affecting the industry this year may make it hard to staff rigs and quickly drill more wells.

Read more:

Canadian dollar no longer rising with oil prices, adding to inflation

“Practically it’s going to be a real challenge,” he said. “We just don’t have the supply chains to deliver that in a hurry.”

In recent years, oil producers in Canada and around the globe have been razor-focused on paying down debt and increasing dividends to shareholders, and there has been little appetite from investors for major capital projects or industry expansion, Masson added.

“We’ve had a bunch of years where we just haven’t invested a lot, and that’s why the price has been so high, even before (Ukraine),” he said.

“It’s not like there’s a bunch of spare capacity sitting around anywhere, so to just turn on the tap now is going to be really tough.”

— With files from James McCarten in Washington

© 2022 The Canadian Press

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Canada’s response to Trump deportation plan a key focus of revived cabinet committee

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OTTAWA, W.Va. – U.S. president-elect Donald Trump’s promise launch a mass deportation of millions of undocumented immigrants has the Canadian government looking at its own border.

Deputy Prime Minister Chrystia Freeland said Friday the issue is one of two “points of focus” for a recently revived cabinet committee on Canada-U.S. relations.

Freeland said she has also been speaking to premiers about the issue this week.

“I do want Canadians to know it is one of our two central points of focus. Ministers are working hard on it, and we absolutely believe that it’s an issue that Canadians are concerned about, Canadians are right to be concerned about it,” Freeland said, after the committee met for the first time since Trump left office in 2021.

She did not provide any details of the plan ministers are working on.

Public Safety Minister Dominic Leblanc, whose portfolio includes responsibility for the Canada Border Services Agency, co-chairs the committee. Freeland said that highlights the importance of border security to Canada-U.S. relations.

There was a significant increase in the number of irregular border crossings between 2016 and 2023, which the RCMP attributed in part to the policies of the first Trump administration.

The national police service said it has been working through multiple scenarios in case there is a change in irregular migration after Trump takes office once again, and any response to a “sudden increase in irregular migration” will be co-ordinated with border security and immigration officials.

However, Syed Hussan with the Migrant Rights Network said he does not anticipate a massive influx of people coming into Canada, chalking the current discussion up to anti-migrant panic.

“I’m not saying there won’t be some exceptions, that people will continue to cross. But here’s the thing, if you look at the people crossing currently into the U.S. from the Mexico border, these are mostly people who are recrossing post-deportation. The reason for that is, is that people have families and communities and jobs. So it seems very unlikely that people are going to move here,” he said.

Since the Safe Third Country Agreement was modified last year, far fewer people are making refugee claims in Canada through irregular border crossings.

The agreement between Canada and the U.S. acknowledges that both countries are safe places for refugees, and stipulates that asylum seekers must make a refugee claim in the country where they first arrive.

The number of people claiming asylum in Canada after coming through an irregular border crossing from the U.S. peaked at 14,000 between January and March 2023.

At that time, the rule was changed to only allow for refugee claims at regular ports of entry, with some specific exemptions.

This closed a loophole that had seen tens of thousands of people enter Canada at Roxham Road in Quebec between 2017 and 2023.

In the first six months of 2024, fewer than 700 people made refugee claims at irregular crossings.

There are 34,000 people waiting to have their refugee claims processed in Canada, according to government data.

In the first 10 months of this year, U.S. border officials recorded nearly 200,000 encounters with people making irregular crossings from Canada. Around 27,000 encounters took place at the border during the first 10 months of 2021.

Hussan said the change to the Safe Third Country Agreement made it less likely people will risk potentially dangerous crossings into Canada.

“Trying to make a life in Canada, it’s actually really difficult. It’s more difficult to be an undocumented person in Canada than the U.S. There’s actually more services in the U.S. currently, more access to jobs,” Hussan said.

Toronto-based immigration lawyer Robert Blanshay said he is receiving “tons and tons” of emails from Americans looking at possibly relocating to Canada since Trump won the election early Wednesday.

He estimates that about half are coming from members of the LGBTQ+ community.

“I spoke to a guy yesterday, he and his partner from Kansas City. And he said to me, ‘You know, things weren’t so hunky-dory here in Kansas City being gay to begin with. The entire political climate is just too scary for us,'” Blanshay said.

Blanshay said he advised the man he would likely not be eligible for express entry into Canada because he is at retirement age.

He also said many Americans contacted him to inquire about moving north of the border after Trump’s first electoral victory, but like last time, he does not anticipate many will actually follow through.

This report by The Canadian Press was first published Nov. 8, 2024



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Surrey recount confirms B.C. New Democrats win election majority

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VANCOUVER – The British Columbia New Democrats have a majority government of 47 seats after a recount in the riding of Surrey-Guildford gave the party’s candidate 22 more votes than the provincial Conservatives.

Confirmation of victory for Premier David Eby’s party comes nearly three weeks after election night when no majority could be declared.

Garry Begg of the NDP had officially gone into the recount yesterday with a 27-vote lead, although British Columbia’s chief electoral officer had said on Tuesday there were 28 unreported votes and these had reduced the margin to 21.

There are ongoing recounts in Kelowna Centre and Prince George-Mackenzie, but these races are led by John Rustad’s B.C. Conservatives and the outcomes will not change the majority status for the New Democrats.

The Election Act says the deadline to appeal results after a judicial recount must be filed with the court within two days after they are declared, but Andrew Watson with Elections BC says that due to Remembrance Day on Monday, that period ends at 4 p.m. Tuesday.

Eby has said his new cabinet will be announced on Nov. 18, with the 44 members of the Opposition caucus and two members from the B.C. Greens to be sworn in Nov. 12 and the New Democrat members of the legislature to be sworn in the next day.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.



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Port of Montreal employer submits ‘final’ offer to dockworkers, threatens lockout

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MONTREAL – The employers association at the Port of Montreal has issued the dockworkers’ union a “final, comprehensive offer,” threatening to lock out workers at 9 p.m. Sunday if a deal isn’t reached.

The Maritime Employers Association says its new offer includes a three per cent salary increase per year for four years and a 3.5 per cent increase for the two subsequent years. It says the offer would bring the total average compensation package of a longshore worker at the Port of Montreal to more than $200,000 per year at the end of the contract.

“The MEA agrees to this significant compensation increase in view of the availability required from its employees,” it wrote Thursday evening in a news release.

The association added that it is asking longshore workers to provide at least one hour’s notice when they will be absent from a shift — instead of one minute — to help reduce management issues “which have a major effect on daily operations.”

Syndicat des débardeurs du port de Montréal, which represents nearly 1,200 longshore workers, launched a partial unlimited strike on Oct. 31, which has paralyzed two terminals that represent 40 per cent of the port’s total container handling capacity.

A complete strike on overtime, affecting the whole port, began on Oct. 10.

The union has said it will accept the same increases that were granted to its counterparts in Halifax or Vancouver — 20 per cent over four years. It is also concerned with scheduling and work-life balance. Workers have been without a collective agreement since Dec. 31, 2023.

Only essential services and activities unrelated to longshoring will continue at the port after 9 p.m. Sunday in the event of a lockout, the employer said.

The ongoing dispute has had major impacts at Canada’s second-biggest port, which moves some $400 million in goods every day.

On Thursday, Montreal port authority CEO Julie Gascon reiterated her call for federal intervention to end the dispute, which has left all container handling capacity at international terminals at “a standstill.”

“I believe that the best agreements are negotiated at the table,” she said in a news release. “But let’s face it, there are no negotiations, and the government must act by offering both sides a path to true industrial peace.”

Federal Labour Minister Steven MacKinnon issued a statement Thursday, prior to the lockout notice, in which he criticized the slow pace of talks at the ports in Montreal and British Columbia, where more than 700 unionized port workers have been locked out since Nov. 4.

“Both sets of talks are progressing at an insufficient pace, indicating a concerning absence of urgency from the parties involved,” he wrote on the X social media platform.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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