Article content The Liberals’ proposed oil and gas emissions cap, announced Monday, is not just an issue for Alberta, although it will hit Alberta and Saskatchewan particularly hard. It’s a national issue. First, the cap will harm the national economy.
It will slow Canada’s already sluggish growth because oil and gas activity, both domestic and export, are major drivers of economic activity across the country. Anything that slows growth, as this cap will do, will also raise prices and taxes and cost jobs nationwide. The Alberta government estimates “the average Canadian family will be left with up to $419 less every month for groceries, mortgage payments and utilities.
” That may be an overestimate (and it may not), but anything that adds to family costs at this time should be avoided. These regulations will require a cut to production of about a million barrels a day, according to S&P Global. That works out to a reduction of about 20% — from five million barrels currently to four million.
That will produce a loss of about $28 billion a year in Gross Domestic Product, which the Conference Board of Canada believes will lead to a loss of up to 150,000 jobs. The cap will also spark a constitutional crisis that could have implications for national unity. Alberta Premier Danielle Smith has called this a “vendetta” against her province, which it clearly is.
The emissions targets are so severe they cannot be achieved without reductions in oil and gas production. The t.
