Quotulatiousness

December 3, 2024

“Granting more sovereign rights to others surprisingly means that these groups will pursue their own interests. Who could have seen this coming?”

Filed under: Cancon, China, Economics, Government, History, Politics — Tags: , , , , , , , — Nicholas @ 05:00

In his weekend round-up, Niccolo Soldo pokes a bit of fun at Justin Trudeau’s federal government for apparently being surprised that First Nations are looking to deal directly with China for their natural resources, rather than through the feds:

Canada continues to be unintentionally hilarious, all thanks to Prime Minister Justin Trudeau and his government.

The Great White North was forever a boring place politically, but the arrival of Trudeau Jr. on the scene shook things up. One of the first things that he and his government committed themselves to was to work to improve the country’s relations with its Native tribes, both politically and especially economically. The Trudeau government invented a genocide narrative based around residential schools.1 Canada too wanted a dark aspect to its own history, so that it could share in the self-flagellation that has coloured the recent history of its neighbour to its immediate south.

Maybe the intention here was to show these Native communities that Canada really, really did care and that by doing this, everything bad that had happened would be forgiven and forgotten? I dunno … what I do know is that Native bands are now seeking to directly do business with China, whereby they would sell natural resources under their control to Beijing:

    Canada’s indigenous communities are seeking deals with China that could give Beijing access to the country’s natural resources, despite warnings from Canadian security services over doing business with Xi Jinping’s government.

    This week the Canada China Business Council indigenous trade mission is in Beijing to discuss potential energy and other business deals in a trip that could put Canada’s national “reconciliation” with its First Nation communities at odds with its national security priorities.

    Karen Ogen, the trade mission’s co-chair and chief executive of the First Nations Liquefied Natural Gas Alliance, said her goal on the trip, which starts on Wednesday, was to sell LNG for the benefit of the Wet’suwet’en communities in Canada’s western province of British Columbia.

    “We’ve been oppressed and repressed by our own government,” she said. “I know the history with China is not good but we have an understanding of what we need and what they need.”

Canada purposely degraded its own national sovereignty in parts of its own country in the name of “reconciliation”. Granting more sovereign rights to others surprisingly means that these groups will pursue their own interests. Who could have seen this coming?

Clever Chinese:

    China has spotted an opportunity in the sometimes fraught relations between Canada’s national and provincial governments and indigenous groups.

    In 2021, shortly after Canada imposed sanctions on Beijing over the treatment of its Uyghur population, Chinese officials began to object to the “systemic violations of Indigenous people’s rights by the US, Canada and Australia” at the UN’s Human Rights Council.

    “The PRC tries to undermine trust between Indigenous communities and Canada’s government by advancing a narrative that the PRC understands and empathises with the struggles of Indigenous communities stemming from colonialism and racism,” said a spokesperson for Canada’s security intelligence service.

    A 2023 CSIS report accused China’s government of employing “grey zone, deceptive and clandestine means” to influence Canadian policymaking, including Indigenous communities.

    “China knows how sensitive Indigenous reconciliation is to the Trudeau government,” said Phil Gurski, a former CSIS intelligence analyst.

A lot of these First Nations (Native bands) reside in the west of the country. Coincidentally, Canada’s third-largest city, Vancouver (located in Canada’s west), is roughly one-third Chinese in composition.

First Nations will continue to pursue these deals with the Chinese:

    But CSIS remains concerned over Beijing’s possible access to resource-rich areas or geopolitically important waterways and regions such as the Arctic through First Nations groups.

    “It not only undermines the government but is a way to potentially embarrass them on Canada’s past,” said Gurski.

    But Matt Vickers, from Sechelt Nations land in Canada’s western province of British Columbia, who first visited China in the 1990s and is part of the CCBC delegation heading to Beijing this week, rejected the concerns of the security services.

    “China now understands that for any major project to receive approval in Canada, you need First Nation consent, and not only consent but the First Nations require a majority equity play in those projects,” he said.

    The CCBC is a bipartisan organisation consisting of Canada’s biggest companies, including Power Corp, which is the main sponsor of the Indigenous event.

    This week’s trip marks the third time a group of Indigenous officials has travelled with the council to China in an effort to identify export markets, sources of capital and potential tourism projects.

    “These missions have been developed in the spirit of reconciliation and collaboration, to help delegates better understand how China’s economy and economic development influences its desire for imports and investment opportunities,” said Sarah Kutulakos, executive director of the CCBC.

It gets even funnier:

    Deteriorating relations between Ottawa and Beijing meant this year’s CCBC meeting would likely be “sombre”, said former Canadian ambassador to China Guy Saint-Jacques.

    First Nations leaders should have “very limited expectations” from the trip. “I don’t expect big business coming out of it,” he said.

    But Ogen, of the First Nations LNG Alliance, said she would put the controversy surrounding the trip to Beijing aside. “I … look at the global energy sector, China’s need for our gas, and how I can make the best deal for my people,” she said.

Trudeau scored an own-goal.

    1. From wiki (because I am lazy): “The Canadian Indian residential school system was a network of boarding schools for Indigenous peoples. The network was funded by the Canadian government’s Department of Indian Affairs and administered by various Christian churches. The school system was created to isolate Indigenous children from the influence of their own culture and religion in order to assimilate them into the dominant Euro-Canadian culture.”

November 12, 2022

Climate imperialism

Filed under: Africa, Asia, Economics, Environment, Germany, India — Tags: , , , , , , , — Nicholas @ 05:00

Michael Shellenberger on the breathtaking hypocrisy of first world nations’ rhetoric toward developing countries’ attempts to improve their domestic energy production:

What’s worse, global elites are demanding that poor nations in the global south forgo fossil fuels, including natural gas, the cleanest fossil fuel, at a time of the worst energy crisis in modern history. None of this has stopped European nations from seeking natural gas to import from Africa for their own use.

Rich nations have for years demanded that India and Pakistan not burn coal. But now, Europe is bidding up the global price of liquified natural gas (LNG), leaving Pakistan forced to ration limited natural gas supplies this winter because Europeans — the same ones demanding Pakistan not burn coal — have bid up the price of natural gas, making it unaffordable.

At last year’s climate talks, 20 nations promised to stop all funding for fossil fuel projects abroad. Germany paid South Africa $800 million to promise not to burn coal. Since then, Germany’s imports of coal have increased eight-fold. As for India, it will need to build 10 to 20 full-sized (28 gigawatts) coal-fired power plants over the next eight years to meet a doubling of electricity demand.

This is climate imperialism. Rich nations are only agreeing to help poor nations so long as they use energy sources that cannot lift themselves out of poverty.

Consider the case of Norway, Europe’s second-largest gas supplier after Russia. Last year it agreed to increase natural gas exports by 2 billion cubic meters, in order to alleviate energy shortages. At the same time, Norway is working to prevent the world’s poorest nations from producing their own natural gas by lobbying the World Bank to end its financing of natural gas projects in Africa.

The IMF wants to hold hostage $50 billion as part of a “Resilience and Sustainability Trust” that will demand nations give up fossil fuels and thus their chance at developing. Such efforts are working. On Thursday, South Africa received $600 million in “climate loans” from French and German development banks that can only be used for renewables. The Europeans hope to shift the $7.6 billion currently being invested by South Africa in electricity infrastructure away from coal and into renewables.

Celebrities and global leaders say they care about the poor. In 2019, the Duchess of Sussex, Meghan Markle, Prince Harry’s wife, told a group of African women, “I am here with you, and I am here FOR you … as a woman of color.” Why, then, are they demanding climate action on their backs?

September 23, 2022

Lessons from the Eighteenth Century for the Russo-Ukraine conflict

Filed under: Europe, Food, History, Military, Russia — Tags: , , , — Nicholas @ 05:00

In Strategika, Edward Luttwak considers what lessons can be drawn from wars of the past to help inform the ongoing Russian invasion of Ukraine:

Every war must end, but no war need end quickly — neither world war makes it to the top ten in longevity. The nearest parallel to the Ukraine war – the Dutch War of Independence (1568–1648), fought between a smaller but more advanced nation, and the world-spanning Spanish Empire, the superpower of the age – persisted for eighty years because the Spanish kept losing, but there was so much ruination in that declining power.

In our own days, expeditionary wars fought against enemies far away who could hardly fire back, lasted for many years as the different war-ending theories promoted by fashionable generals were tried seriatim to no avail, till the day when evacuation was preferred even if utterly ignominious.

The eighteenth-century wars fought by rival European monarchs who could all converse in French with each other, were enviously admired in the bloody twentieth century, because they allowed much commerce and even tourism to persist — utterly unimaginable even in Napoleon’s wars, let alone the two world wars — and because they ended not in the utter exhaustion of the collapsing empires of 1918, nor in the infernal destructions of 1945, but instead by diplomatic arrangements politely negotiated in-between card games and balls. The 1763 Treaty of Paris that ended the Seven Years’ war and French America, inadvertently opening the way for the American republic, was not drafted by the victorious British Prime Minister Lord Bute, but by his very good friend the French foreign minister Étienne-François de Stainville, duc de Choiseul, who solved the three-way puzzle left by the French defeat by paying off Spain with Louisiana, Britain with money-losing Canada, and regaining the profitable sugar islands for France, which still has them.

And instead of the winners charging the losers with incurable bellicosity as Versailles did with Germany, or stringing them up individually as war criminals, as in the ending of twentieth-century wars, eighteenth-century winners were more likely to console the losers just short of “better-luck next time” — and in a century in which there was war every single year without exception from 1700 to 1800, if one war ended another necessarily started or at least persisted, allowing a “next time” soon enough.

By contrast, the ensuing nineteenth-century wars held no lessons at all for the twentieth century, which was equally bereft of a Napoleonic superman at the start and ample tropical lands easily conquered later on, while the Crimea expedition in the middle was mostly a counter-example of how not to wage war, and the Franco-Prussian war was just as sterile: all it proved was that there really was only one Helmuth von Moltke who could win wars by parsimonious force, unlike his homonymous nephew who lost a five-year war in its first five weeks; and that there really was only one Otto von Bismarck, who crowned his incomplete 1871 unification of German lands by refusing to complete it by unifying all Germans as the Italians were unified, lest the world combine to make a bigger Germany smaller.

Clearly only the eighteenth-century precedents apply to the Ukraine War. Neither Putin nor Zelensky speaks French but neither needs it to converse in their Russian mother-tongue, and if they do not actually talk (Putin demurely said that he could not possibly be expected to negotiate with Kiev’s drug addicts and Neo Nazis), their officials certainly can, and do so often.

When it comes to the persistence of commerce in war — the habit that Napoleon wanted to break with his Blocus Continental against British exports — every day Russian gas flows to the homes and factories of Ukraine on its way into Western Europe, with Ukraine transferring money to Russia every day, even as it attacks its faithful customer. And, Ukrainian wheat is now shipped past Russian navy vessels to reach the hungry Middle East, after a negotiation unthinkable in twentieth-century wars, or in Napoleon’s either.

In Russia, sanctions have certainly diminished easy access to imported luxuries in local franchised shops, but they still arrive via Turkey at a slight premium … or discount depending on the previous Moscow markup. All over Russia the sanctions have been felt in all sorts of ways because the country was actually more internationalized than anyone realized, including Putin no doubt (arriving in Tomsk at 0600 one winter morning at a temperature of minus infinity, the one place to eat was McDonalds).

But unlike China, which must choose between fighting and eating protein — some 90% of its chicken, pork, and beef is raised on imported cereals plus some 150 million metric tons of soya per annum from U.S. and Canadian Pacific ports, or the Atlantic ports of Brazil and Argentina that would be an ocean too far for China-bound vessel – Russia produces all its own staple foods and can therefore fight and eat indefinitely, and neither does it import any energy as China must.

In other words, just as Russian propaganda has claimed from day one, the sanctions cannot stop the war materially, even if they played a large role in the flight of tens of thousands of elite Russians, once again diminishing the human capital of the largest European nation, as the Bolsheviks and Civil War did a century ago, and the opening of borders did again a generation ago.

It is a problem that the sanctions, which end the war by stopping Russia, might cause defections from the Western camp if the winter happens to be unusually cold, a subject on which Angela Merkel – so enthusiastically applauded for closing nuclear power stations and preferring Russian piped gas over American and Qatari liquified gas – has remained strangely silent.

September 17, 2022

In the wake of the Russo-Ukrainian war, Europe’s cold winter looms ahead

Filed under: Economics, Europe, Military, Russia — Tags: , , , , , , — Nicholas @ 03:00

Andrew Sullivan allows his views on the fighting in Ukraine to be a bit more optimistic after Ukrainian gains in the most recent counter-attacks on Russian-held territory around Kharkiv:

Approximate front-line positions just before the Ukrainian counter-attack east of Kharkiv in early September 2022. The MOD appears to have stopped posting these daily map updates sometime in the last month or so (this is the most recent as of Friday afternoon).

As we were going to press last week — I still don’t know a better web-era phrase for that process — Ukraine mounted its long-awaited initiative to break the military stalemate that had set in after Russia’s initial defeat in attempting a full-scale invasion. The Kharkiv advance was far more successful than anyone seems to have expected, including the Ukrainians. You’ve seen the maps of regained territory, but the psychological impact is surely more profound. Russian morale is in the toilet — and if it seems a bit premature to say that Ukraine will soon “win” the war, it’s harder and harder to see how Russia doesn’t lose it. By any measure, this is a wonderful development — made possible by Ukrainian courage and Western arms.

Does this change my gloomy assessment of Putin’s economic war on Europe, which will gain momentum as the winter drags on? Yes and no. Yes, it will help shore up nervous European governments who can now point to Ukraine’s success to justify the coming energy-driven recession. No, it will not make that recession any less intense or destabilizing. It may make it worse, as Putin lashes out.

More to the point, the Kharkiv euphoria will not last forever. September is not next February. Russia still has plenty of ammunition to throw Ukraine’s way (even if it has to scrounge some from North Korea); it is still occupying close to a fifth of the country; still enjoying record oil revenues; has yet to fully mobilize for a war; and still has China and much of the developing world in (very tepid) acquiescence. Putin is very much at bay. But he is not finished.

Europe’s scramble to prevent mass suffering this winter is made up of beefing up reserves (now 84 percent full, ahead of schedule), energy rationing, government pledges to cut gas and electricity use, nationalization of gas companies, and billions in aid to consumers and industry, with some of the money recouped by windfall taxes on energy suppliers. The record recently is cause for optimism:

    The Swedish energy company Vattenfall AB said industrial demand for gas in France, the U.K., the Netherlands, Belgium and Italy is down about 15% annually.

But the use of gas by households is trivial in the summer in Europe compared with the winter — and subsidizing the cost doesn’t help conservation. Russia will now cut off all gas — which could send an economy like Italy’s to contract more than 5 percent in one year. There really is no way out of imminent, deep economic distress across the continent. Even countries with minimal dependence on Russia, like Britain, are locked into an energy market with soaring costs.

That will, in turn, strengthen some of the populist-right parties — see Italy and Sweden. The good news is that the new right in Sweden backs NATO, and Italy’s post-liberal darling, Georgia Meloni, who once stanned Putin, “now calls [him] an anti-Western aggressor and said she would ‘totally’ continue to send offensive arms to Ukraine”. The growing evidence of the Russian army’s war crimes — another mass grave was just discovered in Izyum — makes appeasement ever more morally repellent.

So what will Putin do now? That is the question. His military is incapable of recapturing lost territory anytime soon; he is desperate for allies; and mobilizing the entire country carries huge political risks. It’s striking to me that in a new piece, Aleksandr Dugin, the Russian right’s guru, is both apoplectic about the war’s direction and yet still rules out mass conscription:

    Mobilization is inevitable. War affects everyone and everything, but mobilization does not mean forcibly sending conscripts to the front, this can be avoided, for example, by forming a fully-fledged volunteer movement, with the necessary benefits and state support. We must focus on veterans and special support for the Novorossian warriors.

This is weak sauce — especially given Dugin’s view that the West is bent on “a war of annihilation against us — the third world war”. It’s that scenario that could lead to a real and potentially catastrophic escalation — which may be why the German Chancellor remains leery of sending more tanks to Ukraine. The danger is a desperate Putin doing something, well, desperate.

I have no particular insight into intra-Russian arguments over mobilization, but there seems to be zero point (other than for propaganda … and that cuts both ways) to instituting a “Great Patriotic War”-style mass conscription drive at this point. The Russian army could absolutely be boosted to vast numbers through conscription. Vast numbers of untrained, unwilling young people with little military training and no particular passion to save the Rodina this time, despite constant regime callbacks to desperate struggle against Hitler in 1941-45. Pushing under- or untrained troops into battle against a Ukrainian army equipped with relatively modern western weaponry would be little more than deliberate slaughter and I can’t believe even Putin would be that reckless.

September 8, 2022

Surprise! Liz Truss can successfully locate Canada on a map!

Filed under: Britain, Cancon, Economics, Environment, Germany — Tags: , , , , , , — Nicholas @ 05:00

In UnHerd, Marshall Auerback details some of the Canadian connections of Britain’s new PM:

British Prime Minister Liz Truss, 1 May 2022.
Official portrait via Wikimedia Commons.

Faced with soaring costs of living, increased collateral damage from the war in Ukraine, and widening national inequality, Liz Truss seemed curiously optimistic in her first speech as Prime Minister. What could possibly be driving such bullishness? Absent any sign of a coherent plan of action, we might find her motivation in an Instagram post from 2018, where Truss cited the time she spent in Canada as a teenager as “the year that changed my outlook on life … #pioneercounty #optimism #maplespirit”.

As profound an impact as that year might have had on Truss’s optimistic psyche, she would do well to look more closely at Canada’s faltering “success story” in recent years. Today, the country is no longer the land of milk and honey (even if it does still produce a fair amount of maple syrup), but suffers many of the same problems as the UK, and a number that are significantly worse: rising inflation, profound income inequality, the challenges posed by climate change, and an increasing host of social problems — not least the mass stabbing spree last weekend in Saskatchewan that left 10 people dead.

However, to the extent that the Trudeau Administration has attempted to remedy some of these problems, there are clear lessons for Truss. Unlike in the UK, many of Canada’s energy problems are largely self-inflicted, a result of a progressive government ignoring its comparatively resource-rich environment, even as its European allies (including the UK) suffer severe consequences of being cut off from Russian gas supplies and the corresponding rise in energy prices.

A few weeks ago, German Chancellor Olaf Scholz visited Canada to secure more gas for his country. This being Canada, the German Chancellor was treated politely, but the underlying plea for Ottawa to increase liquefied natural gas (LNG) production to offset the loss of Russian gas was given short shrift. The Canadian government, one of the biggest producers of natural gas in the world, has misgivings about whether becoming an even bigger producer and exporter would actually be profitable.

Leaving aside the broader debate as to whether the dangers of man-made climate change have been confounded with natural weather and climate variability, natural gas, although a fossil fuel, emits roughly half the amount of carbon dioxide when combusted in a new, efficient natural gas power plant. This would suggest that Canada’s absolutist stance is not only a major geopolitical mistake, but also an economic own goal. The country is foregoing a major growth opportunity, which would both alleviate global inflationary pressures by increasing the supply of natural gas to the global markets, while simultaneously enhancing the prospect for a plethora of new high-paying jobs that would buttress Canada’s declining middle class.

Canada is also home to substantial supplies of copper, nickel, lithium, and cobalt — all of which will be essential to producing the infrastructure required to transition from fossil fuels to greener sources of energy, such as wind and solar. But mining itself remains a “brown” industry, one that creates substantial carbon emissions and environmental degradation. It seems conceivable, then, that the Trudeau government’s green energy purity could soon discourage the increased mining activity needed to facilitate this energy transition.

[…]

Yet in many respects, Canada’s problems are more easily resolved, given that so many are self-inflicted. And not only are there ample natural resources to offset the current energy crisis, but also broad institutional mechanisms to alleviate regional inequalities. Canada, then, cannot provide all the solutions that Truss needs. For all her boosterism, Britain remains a country fatigued by her party’s ongoing political churn and the non-stop travails still emanating from Brexit. If she is to succeed, Truss must begin by removing her rose-tinted view of Canada. The Great White North can certainly serve as an inspiration — but that is all. Canada may have changed Truss’s “outlook on life”. But if Britain is to “ride out the storm”, as she suggested yesterday, an entirely new approach is needed.

July 6, 2013

Matt Ridley on the “shale cornucopia”

Filed under: Business, USA — Tags: , , , , , — Nicholas @ 10:15

It’s a big deal. A really big deal:

A new report (The Shale Oil Boom: a US Phenomenon) by Leonardo Maugeri, of Harvard University, sets out just how astonishing this second shale revolution already is. After falling for 30 years, US oil production rocketed upwards in the past three years. In 1995 the Bakken field was reckoned by the US Geological Survey to hold a trivial 151 million barrels of recoverable oil. In 2008 this was revised upwards to nearly 4 billion barrels; two months ago that number was doubled. It is a safe bet that it will be revised upwards again.

The big reason for the upwards revisions is technology rather than discovery. Thanks to faster and cheaper drilling (which means less-rich rocks can be profitable) and things such as “zipper fracturing”, where two parallel wells are drilled and alternately fractured to help to release oil for each other, the oil recovery rate is rising from 2 per cent towards 10 per cent in places. Gas is now nearer 30 per cent. Well productivity has doubled in five years.

Now the Bakken is being eclipsed by an even more productive shale formation in southern Texas called the Eagle Ford. Texas, which already produces conventional oil, has doubled its oil production in just over two years and by the end of this year will exceed Venezuela, Kuwait, Mexico and Iraq as an oil “nation”.

[. . .]

Mr Maugeri calculates that at $85 a barrel most shale oil wells repay their capital costs in a year. He estimates that even if oil prices fall steadily to $65 in five years, shale oil production will treble in the US because of increasing productivity per well and the easing of transport bottlenecks. By 2017, he thinks, America will be producing nearly 11 billion barrels a day [correction 11 million], equal to its previous peak in 1970. It would need much less in the way of imports. US oil imports peaked at 60 per cent in 2005 and will be below 40 per cent this year.

Internationally the effect is very different for oil compared with gas. Gas is costly to export by sea, requiring liquefaction. This roughly doubles the cost of it, meaning that America’s cheap shale gas boosts its economy at home, and gives it a competitive advantage in attracting energy-intensive industries. (US gas prices are a third or a quarter of what they are here.) Mexico, too, is benefiting because of having a land border with America and pipelines.

[. . .]

There would be losers. America’s falling appetite for imports may hit Nigeria and Angola harder than the Middle East because of the types of oil they produce, while Canada and Venezuela, whose tarry oil sands are high-cost, would also suffer if oil prices fell. But every oil producer would eventually feel the effect of this falling US demand, so there is no doubting the downward pressure on world oil prices that this revolution is likely to cause.

Ireland’s oil and gas bonanza for the oil companies

Filed under: Europe, Government, Law — Tags: , , , , , — Nicholas @ 09:49

Ireland is thought to have substantial offshore reserves of oil and natural gas that are likely to be profitable with current technology, but due to a legislative change dating back to the 1980s, the Irish government may not get much benefit:

In a now legendary all-night sitting on September 29th, 2008 the Irish government agreed to guarantee all bank debts. O’Toole calls this the “most disastrous decision that was ever made by an Irish government”. At least two generations of taxpayers will pay off these debts. O’Toole makes an excellent job of charting the Irish path to disaster in his book Ship of Fools, in which he calls the accounts of Anglo Irish Bank the “most inventive work of Irish fiction since Ulysses”.

The oil off the Irish coast could be the way out of this misery. The oil could be the hope. If the former energy minister Ray Burke hadn’t rewritten the relevant laws as though the oil industry itself held the pen. And if Bertie Ahern hadn’t made an already bad deal for the Irish people even worse.

Burke was energy minister in 1987, when it was decided to change the provisions for oil and grass drilling licence allocation. Until then the state owned 50 per cent of all oil and gas found in Irish waters. In addition, companies had to pay royalties of between 8 and 16 per cent as well as 50 per cent tax. (1, see notes below)

The new rule gave companies 100 per cent of their find and abolished licence fees. In 1992 Bertie Ahern, then finance minister and later prime minister from 1998 to 2008, cut the tax for oil companies to 25 per cent — a provision that remains to this day. (2)

[. . .]

The reason this political inheritance is causing such animated discussion now is because of huge oil and gas reserves believed to surround the island. The company Providence estimates the volume of oil it discovered in the Barryroe field, south of Cork, at over 1.7 billion barrels, of which at least 270 million can be pumped. Further test drillings in Irish waters have been similarly promising.

At the moment a barrel of oil costs, depending on grade, between $90 and $100, meaning there could be oil worth many billions of euro in the Irish sea bed. (3) Even the oil companies concede that Ireland is surrounded by massive riches. But the Irish will probably gain none of this thanks to men like Ray Burke and Bertie Ahern.

June 22, 2013

Generating electricity from “biomass” – bad economics and bad for the environment

Filed under: Britain, Economics, Environment — Tags: , , , , — Nicholas @ 09:57

Matt Ridley explains why replacing natural gas (or even coal) electrical generation with biomass is an absurd “solution”:

Under the Government’s plan, biomass power stations will soon be burning much more wood than the country can possibly produce. There is a comforting myth out there that biomass imports are mainly waste that would otherwise decompose: peanut husks, olive pips, bark trimmings and the like. Actually, the bulk of the imports are already and will continue to be of wood pellets.

It is instructive to trace these back to their origin. Reporters for The Wall Street Journal recently found that the two pelleting plants established in the southern US specifically to supply Drax are not just taking waste or logs from thinned forest, but also taking logs from cleared forest, including swamp woodlands in North Carolina cleared by “shovel-logging” with giant bulldozers (running on diesel). Local environmentalists are up in arms.

The logs are taken to the pelleting plants where they are dried, chopped and pelleted, in an industrial process that emits lots of carbon dioxide and pollutants. They are then trucked (more diesel) to ports, loaded on ships (diesel again), offloaded at the Humber on to (yet more diesel) trains, 40 of which arrive at Drax each day.

[. . .]

Over 20 or 40 years, study after study shows that wood burning is far worse than gas, and worse even than coal, in terms of its greenhouse gas emissions. The effect on forest soil, especially if it is peaty, only exacerbates the disparity. The peat dries out and oxidises.

Yet the Government persists in regarding biomass burning as zero-carbon and therefore deserving of subsidy. It does so by the Orwellian feat of defining sustainability as a 60 per cent reduction in emissions from fossil fuels. As Calor Gas puts it: “This is a logical somersault too far, conveniently — for the sake of cherry-picking the technology — equating 40 per cent to 0 per cent.” (Calor Gas supplies rural gas and is understandably miffed at being punitively treated while a higher- carbon rival industry is subsidised. […]) Moreover, unlike gas or coal, you are pinching nature’s lunch when you cut down trees. Unfelled, the trees would feed beetles, woodpeckers, fungi and all sorts of other wildlife when they died, let alone when they lived. Nothing eats coal.

So, compared with gas, the biomass dash is bad for the climate, bad for energy security and dependence on imports, bad for human health, bad for wildlife and very bad for the economy. Apart from that, what’s not to like?

June 12, 2013

New disclosure rules for Canadian oil, gas, and mining companies

Filed under: Business, Cancon — Tags: , , , , — Nicholas @ 08:19

David Akin in the Toronto Sun:

The Canadian government announced new measures Tuesday that will force oil, gas, and mining companies to publicly disclose every penny they pay to any government at home or around the world.

The move is seen as an anti-corruption measure and one that many activists groups that work in the developing world, such as Oxfam, have been demanding for years, particularly since Canada is home to a majority of the world’s mining companies.

The European Union and the United States have already moved towards mandatory reporting requirements for their mining companies.

There have been cases in some developing countries where multinationals pay a host government substantial sums for the rights to oil, gas or minerals, but the local population complains that they do not know how much their governments are getting and, as a result, cannot demand their governments spend some of that wealth on them.

It’s not just in developing countries, either, as some First Nations activists have complained that they can’t get information on what their band councils receive in various resource development deals here in Canada. Of course, some (many?) deals get done with a bit of bribery to sweeten the attraction, but not every country will have (or enforce) rules like this.

September 29, 2012

CN experiments with natural gas for its locomotives

Filed under: Business, Cancon, Railways, Technology — Tags: , , — Nicholas @ 00:01

Canadian National Railways is running a limited experiment with a pair of retro-fitted diesel locomotives converted to running on natural gas:

Canadian National Railway is exploring whether its feasible to use cheap and relatively clean natural gas to power its trains instead of diesel.

CN has retrofitted two of its existing diesel-fired locomotives to run mainly on natural gas. It’s testing the locomotives along the 480-kilometre stretch between Edmonton, a key energy processing and pipeline hub, and the oilsands epicentre of Fort McMurray, Alta.

Longer term, CN and three other partners are looking at developing an all-new natural gas locomotive engine as well as a specialized tank car to carry the fuel.

January 2, 2012

Presenting the good news as bad news, New York Times-style

Filed under: Africa, Environment, Media — Tags: , , , — Nicholas @ 12:17

Walter Russell Mead has a textbook example of finding the cloud to every silver lining in the pages of the New York Times:

A worthless desert in South Africa, largely inhabited by drought-stricken sheep and a handful of marginal farmers, turns out to contain rich natural gas reserves that could bring a new wave of economic growth to South Africa and provide huge numbers of well paying jobs for poorly educated workers.

The New York Times, of course, is wringing its elegantly manicured hands. And why not? The soil of the Karoo desert is “fragile,” and the extraction of the natural gas will involve fracking. What will happen to the sheep?

The Times finds a local farmer who is worried about exactly that.

    “If our government lets these companies touch even a drop of our water,” [the farmer] said, “we’re ruined.”

Ruined! By wicked natural gas companies feeding the world’s hydrocarbon addiction. The farmer in question has a herd of 1400 sheep. (It was 2000 last year before a drought forced the slaughter of 600.) One somehow suspects that the farmer will find some other way to make money when the district becomes a major gas producing center. And, worst case, roughnecks eat a lot of meat.

That the Times chooses the lonesome shepherd to lead off one of the best good news stories around these days speaks volumes about the gloomy Gus mindset at the Paper of Record. Why can’t this be a good news story? Will a gas boom save South African democracy, for example? Will new economic opportunities transform the lives of tens and possibly hundreds of thousands of poor black South Africans? Will the huge increase in South Africa’s natural gas supply reduce the country’s carbon footprint? Is there anything in the geology to suggest that other poverty stricken parts of Africa might also be similarly blessed? How are local leaders planning the spend the windfall: better schools? better hospitals?

November 6, 2011

The “shale gale” blows away Canada’s illusions of being an “energy superpower”

Filed under: Cancon, Economics, Environment, USA — Tags: , , , — Nicholas @ 12:50

Terence Corcoran pours cold water on the notion that this is the moment for Canada to become a major player in the world energy markets:

In recent weeks, Canada — a self-proclaimed global energy superpower — has been trying to throw its weight around over the Keystone XL pipeline, TransCanada Corp.’s $7-billion project to ship oil sands production from Alberta to Texas. In Houston on Tuesday, Natural Resources Minister Joe Oliver let the Americans know that Canada had other options. “What will happen if there wasn’t approval [of Keystone] — and we think there will be — is that we’ll simply have to intensify our efforts to sell the oil elsewhere.”

Canadian oil executives, who have a lot invested in the superpower notion, are also issuing aggressive-sounding statements aimed at the United States. A headline in The Globe and Mail Friday sounded like a threat: “Oil patch to U.S.: OK pipe or lose our oil.” The story didn’t quite back up the headline, but the sense was that Canada was developing alternatives and that China is the big alternative.

[. . .]

While Canadian government and industry officials have a lot invested in the idea of energy superpowerdom, few outside observers share the vision. Canada barely rates a mention in The Quest: Energy, Security and the Remaking of the Modern World, Daniel Yergin’s new book on the world energy market. A few pages are devoted to the oil sands, mostly to review the high costs and technical difficulties. “As the industry grows in scale, it will require wider collaboration on the R&D challenges, not only among oil companies and the province of Alberta, but also with Canada’s federal government.”

Far more impressive for the world’s energy future will be the impact of shale gas and shale oil. The “shale gale,” as Mr. Yergin calls it, has already transformed the U.S. gas market and shale oil could be next. Since Mr. Yergin’s book was written, the shale revolution has swept Europe and is about to transform China’s energy market.

June 11, 2011

QotD: OPEC’s 50-year fishing trip

Filed under: Economics, Government, Middle East, Quotations, USA — Tags: , , , — Nicholas @ 11:56

The petroleum-exporting countries have kept America as a gigantic fish on a steel line for nearly 50 years, reeling it in slowly, and letting it out (relaxing oil prices), when the United States made purposeful noises about raising domestic production, cutting consumption, and going to alternate sources. As soon as OPEC fine-tuned the fishing reel, the great fish went with the docility of the addicted consumer back to its default position mainlining on foreign oil at steadily increasing prices and in ever larger quantities. Every president starting with Richard Nixon warned of the danger in this addiction, but none has done anything useful about it. There must be an emphasis on cheap and plentiful natural gas, more nuclear (with maximum safety standards), more off-shore drilling (with maximum environmental-protection arrangements), and higher gasoline taxes to raise revenues and restrain use. All of this will bring down the international price and reduce the amount of money available for the Iranians, Saudis, Venezuelans, and others to finance terrorism around the world, and will ultimately reduce U.S. defense costs. None of this has been done, though the need for it has been obvious for decades.

Conrad Black, “Why America is suffering”, National Post, 2011-06-11

April 15, 2010

Uninhabited islands could be flashpoint in Sino-Japanese conflict

Filed under: China, Japan, Military — Tags: , , , — Nicholas @ 07:35

A group of uninhabited islands south of Okinawa have the potential to increase tensions between China and Japan. The Senkaku island group is subject to overlapping claims from China, Taiwan, and Japan:

Japan reports that, for the third time in the past 18 months, Chinese warships have been spotted south of the Japanese Island of Okinawa. This time, it was two Chinese submarines, running on the surface. That had never been seen before, in the area near the Senkaku islands (which are claimed by China, Taiwan and Japan). The Senkakus are eight uninhabited islands, which in the past were only used occasionally by fishermen. The Senkakus are 220 kilometers from Taiwan, 360 kilometers from China and 360 kilometers from Okinawa (which is part of Japan).

[. . .]

Five years ago, a Chinese oil drilling platform, in disputed waters halfway between China and the Japanese island of Okinawa, began producing natural gas, despite ongoing negotiations over who owns what in that patch of ocean. The Chinese spent two years building that platform, in waters claimed by Japan. A second platform was later built, as well as an underwater oil pipeline for both platforms. China regularly sends groups of warships to patrol the area, to underline their belief that this bit of water is under Chinese control. Japan would probably win any naval war with China, but since China has nuclear weapons, and Japan does not (at least not right now), such a war could go seriously against Japan. This has been brought up in Japan before, and it is feared that the issue may lead to Japan secretly, or openly, building nuclear weapons (which it could certainly do, and quite quickly.)

I’m certainly hoping that this is just speculation on the part of Strategy Page (the bit about nuclear weapons), as territorial disputes over islands do have a way of getting out of hand (see Falkland Islands, for example).

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