RE:RE:RE:RE:RE:RE:RE:RE:RE:EV Superbowl AdsWe always have good discussion. No you didn't mention heavy oil, but it was implied by bringing up the Egress comment. The egress issue is getting to Superior. Light oil out of Saskatchewan or upgraded oil never saw the huge discounts that heavy oil did as they travel on different pipes. This pipeline is firmly an issue for energy security for Ontario/Michigan and its industry. It's vital. There are other ways but nothing competitive. Similar to Alberta had the option of rail, but at great economic loss.
He did get TMX going, and I thank him for that. It is the job of the PM to do what is in the best interest for the country. He is well aware of the fact that energy is the largest export and source of FX for the country. He is also aware that having large spreads in WCS was costing his government billions a month in economic activity plus the loss of income/Corp taxes. On paper the pipeline is a loser (tariffs versus cost), barely a breakeven proposition. It's effects on the industry, and the governments is enormously positive by keeping spreads around $10. My major fault was that he was a major contributor to politicizing infrastructure.
Yeah Harper was probably the best pm in the last 30 years. He held a surplus, attracted huge sums of foreign investment and kept Canada's financial system healthy. No one is perfect and his fault was weakening the regulatory system to help supercharge activity. This lead to court challenges and eventually the reduction of investment and lowering of competitiveness.
Man is your last point loaded. Higher production does not mean healthier industry. The vast majority 70+% of profits went to midwest refineries buying Canadian oil in the last 5 years as Canada as a whole paid brent pricing for products. That is enormously destructive economically. His actions created the scenario where the industry as a whole was on life support while the US industry was in peak condition. Look at Peyto, if NGTL was debottlenecked on time and 2017-2019 didn't result in $0 AECO prices, they Peyto would have been in a relatively healthy position in 2020 (in reality they likely would have just maintained a higher dividend, but a guy can wish). If Canadian Energy wasn't such a toxic place for acquisitions the entire industry could have been taken over in forced mergers. That's water under the bridge and it looks like everything has turned the corner.
Well in regards to Tech Canada will never have a powerhouse just on the nature of software. It has massive scale with little cost, so you go after larger markets first. Any idea with premise will relocate close to customers, employees or capital. Network effects are huge, and it is hard to start an ecosystem when one already exists. EVs well TSLA was the pioneer but will quickly get crowded out by traditional automakers readily looking to demonstrate they aren't irrelevant.
We chatted about this a month or so ago with regards to negative grid effects and renewables. It's starting and where California goes...the rest will follow. EVs will pour fire on this. Net metering just doesn't work technically or business wise, can't sell into the grid for retail rates without paying distribution. Economics get killed once you are forced sell production at wholesale and buy back at retail plus distribution.
https://www.wsj.com/articles/californias-green-welfare-state-solar-panels-public-utilities-commission-11642806486
https://www.reuters.com/business/energy/california-proposes-major-reforms-rooftop-solar-policy-2021-12-13/