To Help or Hinder – Pipelines
How can we tell which is which? Government interference on energy pipelines, or is it government regulation? Tough call nowadays.
The Trudeau government claims that the new Canadian Energy Regulator (CER) it plans to create and put in charge of project approvals, in place of the NEB, will help to restore investor confidence.
Which is it?
First, it appears to me that uncertainty that exists in our Canadian energy marketplace, more specifically the current pipeline debate, might have something to do with the degree of political interference in energy regulation. (Bingo. Interference it is!)
As I mentioned the other day, I wanted Energy Exec’s to be more vocal in what’s happening to the industry as the public may not understand – Of those that have commented, Current Suncor CEO and former Encana boss both mentioned that Canada is a tricky place to decide to invest in oil infrastructure. (No kidding!)
Interference creates energy market uncertainty
Secondly, I will make the case that changes declared by the federal government to environmental and regulatory reviews related to major projects, specifically the change from National Energy Board (NEB), announced Thursday, in the name of “modernizing” regulatory approvals have made the waters muddy! (Government interference directly relating to market uncertainty and investment instability?? Who would have thought!?)
So, where are we? Well, between the BC Government, Alberta Government, Saskatchewan Government and current Federal Government, it’s fair to say “the man” has his hands all over this mess.
Hard to be optimistic that they will eventually come to a decision that works for everyone. Hard? Yes. Impossible? No.
Government and Businesses can work together, seriously!
Finally, our government needs to be for the people, of course, but the current “I know what’s best” mentality is not going to work, and time is of the essence. Yet as I’ve said before, Industry leaders are still pretty silent! (What gives!? ) The BC NDP, AB NDP, and Federal Liberals do what they all do best and make it a political point-game. — (Quick trying to score points on Twitter and get to work, folks! )
If Ottawa needs a helpful mediator, I’m available on Wednesday’s.
That’s your Oil Sands Saturday