Tariffs on Canadian oil imports and exports can change price calculation in the USA, making the market more susceptible to local conditions. Moves to increase the price of oil in the USA will bring more domestic production online and will speed-up ongoing transition of refineries and pipelines to use Permian/fracked oil.
A major issue for Canada is that investment flows from the USA. It is 80 years since the end of the 1930s tariff regimes that lead to expanding dependence on trade with the USA. Capital investment is from US-based finance.
What can we say about 2024 and the times we live in? We live through so little that can qualify as reassuring or hopeful.
Ever wonder what the discussion about tariffs is actually about? There are a lot of explanations on the internet and in the news about what a tariff is.
The discussion of prices, inflation, and taxes are informed by ideology. The ideologies driving our understanding of economics, how we talk about money, and who we expect to pay for certain things determines both our understanding of what is going on in the world and how we should respond to it.
The word 'resiliency' is one of the more overused words in the wake of the pandemic. Things that were disrupted because of lack of proper investment include our supply chains that move goods around the world. It is not just global pandemics that cause major crises along these supply chains.
Supply chains are still a bit of a mess since the pandemic. The ongoing geopolitical crises, climate change effects, and poor private sector management of large projects are putting intense strain on the transport industry and the costs cannot be understated.
An issue arises when we look at taxes inevitably raised to pay the debt or for the increased spending. There is some strange thing that happens where people expect not to have to pay for things that the government does. Many think every tax dollar they pay is extra spending, even if they suddenly do not have to pay the directly out of pocket higher price in the private market any more. Math is hard and net savings are not obvious to people. The left should start talking about state revenue generation as an alternative.
Carbon neutrality in the energy system is not the end of the use of natural gas, but it will result in the shift of focus on the use of natural gas from energy to production. If done correctly, this will not mean a /reduction/ in the work available. But, it will mean a shift in the focus of where that work happens. However, a redirection in the focus of work and investment is very problematic for current revenue programs of industry leading companies in Canada.
Efficiency of transport and storage is what is going to drive the cost of energy. This is because of our continued limited capacity to generate non-emitting electricity and that we do not use electricity only where it is produced.
