Why Canada's oilpatch can't solve the energy crisis - CBC News | Canada News Media
Connect with us

News

Why Canada's oilpatch can't solve the energy crisis – CBC News

Published

 on


After meeting with his global counterparts in Paris this week, Canada’s natural resources minister pledged to pump out more oil and gas to alleviate the energy crisis in Europe.

Oil and natural gas are in short supply in parts of the world after many countries sanctioned Russia following its invasion of Ukraine.

The Canadian industry wants to increase production, but there are questions about how much extra oil and natural gas can be pulled from the ground and what impact it could have on the world, especially considering oil production in Western Canada is already near record levels.

Jonathan Wilkinson announced Thursday that Canada’s industry is expected to increase oil production by 200,000 barrels per day, and the equivalent of 100,000 barrels of natural gas per day, by the end of the year. 

Currently, Canada produces about 4.7 million barrels per day of oil, and exports about four million barrels per day.

World’s energy woes

Commodity prices have spiked in the last month as Russia’s exports, from oil to coal, have fallen. It’s why gasoline prices hit record levels in Canada this month.

Europe is the biggest customer for Russia’s oil and natural gas. That dependance is why European countries are having a difficult time following in the footsteps of Canada and the U.S., which both banned imports of Russian oil and gas.

WATCH | Searching for solutions as countries ban Russian oil:

Searching for solutions as countries ban Russian oil

7 days ago
Duration 8:10

With more countries banning Russian oil and looking to make deals on Saudi Arabia’s oil supply, it raises ethical issues considering the country’s human rights record. Plus, the opportunity this presents for countries to look at more environmentally friendly solutions. Ginella Massa talks to Deborah Yedlin, chair of the Calgary Chamber of Commerce, and Tzeporah Berman, program director for the environmental organization Stand.Earth. 8:10

“We have our European allies who are facing the prospect of not being able to heat their homes or fill up their trucks to actually service their grocery stores and their restaurants. It would be incredibly irresponsible for Canada to say ‘we don’t care,'” Wilkinson told reporters on Thursday.

Canada’s role

Last year, Russia was exporting about 4.6 million barrels per day of crude oil, according to energy consultancy group Wood Mackenzie. Those exports have fallen because of the widespread economic and energy-focused sanctions against the country.

If Canada can boost its own oil output by 200,000 barrels per day, that in itself won’t have much of an impact on offsetting those Russian barrels. If anything, it could help the United States, which is looking to replace about 500,000 barrels of petroleum that it was importing from Russia.

Natural Resources Minister Jonathan Wilkinson, pictured here at the UN climate conference in November, wants Canada to produce more oil and gas in 2022. (Kyle Bakx/CBC)

“Canada on its own is not going to solve the issue,” said Wilkinson. “But Canada coming forward in conjunction with Brazil, in conjunction with the United States, and I’m sure there will be others, will help us to remove some of the tightness in the market.”

While many Canadian companies say they want to help by increasing production, there are also some critics who say the federal government hasn’t been supportive enough of the oilpatch, in terms of pipeline regulations and a proposed cap on emissions, among other policies.

“It’s a temporary respite to the negative approach the federal government has taken toward energy development,” said Robert Cooper, with the institutional sales and trading team at Calgary-based investment firm Acumen Capital Partners.

“I don’t think that anyone in downtown Calgary believes that there’s been a sudden change from the federal government as it pertains to resource development in this country,” he said.

Turning up the taps easier said than done

For Canadian oil companies to produce more oil is much easier said than done, considering production levels were already high this winter. Alberta’s oil production hit a record high in October and was also a record for the first 10 months of any year, which shows that industry hasn’t been holding back on turning on the taps.

“My initial reaction is a bit of confusion, to be honest,” said Rory Johnston, founder of the Commodity Context newsletter, about the federal announcement about increasing oil exports.

There is spare pipeline and rail capacity to boost exports, he said, the question is about the extra crude.

“It’s difficult to see right now where a substantial or material increase in Canadian oil production could actually fill those increased pipelines, at this moment,” he said.

Oil output can fluctuate

It’s also worth considering that Canada’s oil output can fluctuate from month-to-month because of cold weather, facility maintenance, and other impacts. 

Last year, exports reached four million barrels per day of oil, but were as low as 3.6 million during some months. Those swings don’t have an impact on global oil markets, which shows how even if Canada is able to increase total capacity by 200,000 barrels per day, it’s a relatively insignificant amount.

The potential boost in crude also might not happen with regularity, considering the nature of the industry. 

Building new oilsands facilities or expansions often take several years to develop and require billions of dollars of investment.

The Fort Hills oilsands mine began production in 2018. The facility hasn’t operated at full capacity in recent years. (Kyle Bakx/CBC)

Oil major Cenovus has said any production increase this year will be marginal, while Suncor is expecting an increase of nearly 100,000 barrels per day from the Fort Hills oilsands facility, north of Fort McMurray.

The mine was operating at about 50 per cent capacity, but the company told CBC News the 194,000 barrel per day facility should be operating at about 90 per cent later this year.

There are opportunities to increase production to address the affordability issues in North America and the energy security problem around the world, but it’s not a certainty, said Tristan Goodman, president of the Explorers and Producers Association of Canada.

“You will need investors to have confidence that they should increase production. And if you’re not going to have investor confidence, you will not see increased production,” he said.

Tristan Goodman, with the Explorers and Producers Association of Canada, takes part in a panel focusing on Canadian energy at CERAWeek by S&P Global in Houston earlier this month. (Kyle Bakx/CBC)

In recent years, investors have pushed oilpatch companies to give more cash to shareholders instead of increasing oil and gas production.

“In the long-term, or in the mid-term, there does need to be a conversation with Canadians over infrastructure related to natural gas and oil,” he said.

Where will it go?

Even though Europe is the target destination for any increases in Canadian oil and natural gas, that’s not a straightforward journey from Western Canada. The overwhelming majority of Canada’s export pipelines head south into the U.S.

If more Canadian oil is shipped to Europe, it would likely first have to travel all the way down to the Gulf Coast to be loaded onto a tanker, before setting sail across the Atlantic.

It’s a similar situation with natural gas as Canada does not have way to export to Europe without first traveling south across the border.

Still, even if all goes as planned with Canada’s promise of more energy to the world, it’s much too small on its own to move the needle when it comes to commodity prices or global supplies.

WATCH | Government looking to shore up short-term supply of crude oil and natural gas:

Minister says government looking to shore up short-term supply of crude oil and natural gas as U.S. bans Russian imports

17 days ago

Duration 5:54

Natural Resources Minister Jonathan Wilkinson joins Power & Politics to discuss the U.S. ban on Russian imports of oil and gas. 5:54

Adblock test (Why?)



Source link

Continue Reading

News

STD epidemic slows as new syphilis and gonorrhea cases fall in US

Published

 on

 

NEW YORK (AP) — The U.S. syphilis epidemic slowed dramatically last year, gonorrhea cases fell and chlamydia cases remained below prepandemic levels, according to federal data released Tuesday.

The numbers represented some good news about sexually transmitted diseases, which experienced some alarming increases in past years due to declining condom use, inadequate sex education, and reduced testing and treatment when the COVID-19 pandemic hit.

Last year, cases of the most infectious stages of syphilis fell 10% from the year before — the first substantial decline in more than two decades. Gonorrhea cases dropped 7%, marking a second straight year of decline and bringing the number below what it was in 2019.

“I’m encouraged, and it’s been a long time since I felt that way” about the nation’s epidemic of sexually transmitted infections, said the CDC’s Dr. Jonathan Mermin. “Something is working.”

More than 2.4 million cases of syphilis, gonorrhea and chlamydia were diagnosed and reported last year — 1.6 million cases of chlamydia, 600,000 of gonorrhea, and more than 209,000 of syphilis.

Syphilis is a particular concern. For centuries, it was a common but feared infection that could deform the body and end in death. New cases plummeted in the U.S. starting in the 1940s when infection-fighting antibiotics became widely available, and they trended down for a half century after that. By 2002, however, cases began rising again, with men who have sex with other men being disproportionately affected.

The new report found cases of syphilis in their early, most infectious stages dropped 13% among gay and bisexual men. It was the first such drop since the agency began reporting data for that group in the mid-2000s.

However, there was a 12% increase in the rate of cases of unknown- or later-stage syphilis — a reflection of people infected years ago.

Cases of syphilis in newborns, passed on from infected mothers, also rose. There were nearly 4,000 cases, including 279 stillbirths and infant deaths.

“This means pregnant women are not being tested often enough,” said Dr. Jeffrey Klausner, a professor of medicine at the University of Southern California.

What caused some of the STD trends to improve? Several experts say one contributor is the growing use of an antibiotic as a “morning-after pill.” Studies have shown that taking doxycycline within 72 hours of unprotected sex cuts the risk of developing syphilis, gonorrhea and chlamydia.

In June, the CDC started recommending doxycycline as a morning-after pill, specifically for gay and bisexual men and transgender women who recently had an STD diagnosis. But health departments and organizations in some cities had been giving the pills to people for a couple years.

Some experts believe that the 2022 mpox outbreak — which mainly hit gay and bisexual men — may have had a lingering effect on sexual behavior in 2023, or at least on people’s willingness to get tested when strange sores appeared.

Another factor may have been an increase in the number of health workers testing people for infections, doing contact tracing and connecting people to treatment. Congress gave $1.2 billion to expand the workforce over five years, including $600 million to states, cities and territories that get STD prevention funding from CDC.

Last year had the “most activity with that funding throughout the U.S.,” said David Harvey, executive director of the National Coalition of STD Directors.

However, Congress ended the funds early as a part of last year’s debt ceiling deal, cutting off $400 million. Some people already have lost their jobs, said a spokeswoman for Harvey’s organization.

Still, Harvey said he had reasons for optimism, including the growing use of doxycycline and a push for at-home STD test kits.

Also, there are reasons to think the next presidential administration could get behind STD prevention. In 2019, then-President Donald Trump announced a campaign to “eliminate” the U.S. HIV epidemic by 2030. (Federal health officials later clarified that the actual goal was a huge reduction in new infections — fewer than 3,000 a year.)

There were nearly 32,000 new HIV infections in 2022, the CDC estimates. But a boost in public health funding for HIV could also also help bring down other sexually transmitted infections, experts said.

“When the government puts in resources, puts in money, we see declines in STDs,” Klausner said.

___

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

Source link

Continue Reading

News

World’s largest active volcano Mauna Loa showed telltale warning signs before erupting in 2022

Published

 on

 

WASHINGTON (AP) — Scientists can’t know precisely when a volcano is about to erupt, but they can sometimes pick up telltale signs.

That happened two years ago with the world’s largest active volcano. About two months before Mauna Loa spewed rivers of glowing orange molten lava, geologists detected small earthquakes nearby and other signs, and they warned residents on Hawaii‘s Big Island.

Now a study of the volcano’s lava confirms their timeline for when the molten rock below was on the move.

“Volcanoes are tricky because we don’t get to watch directly what’s happening inside – we have to look for other signs,” said Erik Klemetti Gonzalez, a volcano expert at Denison University, who was not involved in the study.

Upswelling ground and increased earthquake activity near the volcano resulted from magma rising from lower levels of Earth’s crust to fill chambers beneath the volcano, said Kendra Lynn, a research geologist at the Hawaiian Volcano Observatory and co-author of a new study in Nature Communications.

When pressure was high enough, the magma broke through brittle surface rock and became lava – and the eruption began in late November 2022. Later, researchers collected samples of volcanic rock for analysis.

The chemical makeup of certain crystals within the lava indicated that around 70 days before the eruption, large quantities of molten rock had moved from around 1.9 miles (3 kilometers) to 3 miles (5 kilometers) under the summit to a mile (2 kilometers) or less beneath, the study found. This matched the timeline the geologists had observed with other signs.

The last time Mauna Loa erupted was in 1984. Most of the U.S. volcanoes that scientists consider to be active are found in Hawaii, Alaska and the West Coast.

Worldwide, around 585 volcanoes are considered active.

Scientists can’t predict eruptions, but they can make a “forecast,” said Ben Andrews, who heads the global volcano program at the Smithsonian Institution and who was not involved in the study.

Andrews compared volcano forecasts to weather forecasts – informed “probabilities” that an event will occur. And better data about the past behavior of specific volcanos can help researchers finetune forecasts of future activity, experts say.

(asterisk)We can look for similar patterns in the future and expect that there’s a higher probability of conditions for an eruption happening,” said Klemetti Gonzalez.

___

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

The Canadian Press. All rights reserved.

Source link

Continue Reading

News

Waymo’s robotaxis now open to anyone who wants a driverless ride in Los Angeles

Published

 on

 

Waymo on Tuesday opened its robotaxi service to anyone who wants a ride around Los Angeles, marking another milestone in the evolution of self-driving car technology since the company began as a secret project at Google 15 years ago.

The expansion comes eight months after Waymo began offering rides in Los Angeles to a limited group of passengers chosen from a waiting list that had ballooned to more than 300,000 people. Now, anyone with the Waymo One smartphone app will be able to request a ride around an 80-square-mile (129-square-kilometer) territory spanning the second largest U.S. city.

After Waymo received approval from California regulators to charge for rides 15 months ago, the company initially chose to launch its operations in San Francisco before offering a limited service in Los Angeles.

Before deciding to compete against conventional ride-hailing pioneers Uber and Lyft in California, Waymo unleashed its robotaxis in Phoenix in 2020 and has been steadily extending the reach of its service in that Arizona city ever since.

Driverless rides are proving to be more than just a novelty. Waymo says it now transports more than 50,000 weekly passengers in its robotaxis, a volume of business numbers that helped the company recently raise $5.6 billion from its corporate parent Alphabet and a list of other investors that included venture capital firm Andreesen Horowitz and financial management firm T. Rowe Price.

“Our service has matured quickly and our riders are embracing the many benefits of fully autonomous driving,” Waymo co-CEO Tekedra Mawakana said in a blog post.

Despite its inroads, Waymo is still believed to be losing money. Although Alphabet doesn’t disclose Waymo’s financial results, the robotaxi is a major part of an “Other Bets” division that had suffered an operating loss of $3.3 billion through the first nine months of this year, down from a setback of $4.2 billion at the same time last year.

But Waymo has come a long way since Google began working on self-driving cars in 2009 as part of project “Chauffeur.” Since its 2016 spinoff from Google, Waymo has established itself as the clear leader in a robotaxi industry that’s getting more congested.

Electric auto pioneer Tesla is aiming to launch a rival “Cybercab” service by 2026, although its CEO Elon Musk said he hopes the company can get the required regulatory clearances to operate in Texas and California by next year.

Tesla’s projected timeline for competing against Waymo has been met with skepticism because Musk has made unfulfilled promises about the company’s self-driving car technology for nearly a decade.

Meanwhile, Waymo’s robotaxis have driven more than 20 million fully autonomous miles and provided more than 2 million rides to passengers without encountering a serious accident that resulted in its operations being sidelined.

That safety record is a stark contrast to one of its early rivals, Cruise, a robotaxi service owned by General Motors. Cruise’s California license was suspended last year after one of its driverless cars in San Francisco dragged a jaywalking pedestrian who had been struck by a different car driven by a human.

Cruise is now trying to rebound by joining forces with Uber to make some of its services available next year in U.S. cities that still haven’t been announced. But Waymo also has forged a similar alliance with Uber to dispatch its robotaxi in Atlanta and Austin, Texas next year.

Another robotaxi service, Amazon’s Zoox, is hoping to begin offering driverless rides to the general public in Las Vegas at some point next year before also launching in San Francisco.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending

Exit mobile version