The Lead

Export Development Canada (EDC) has handed over much more money to oil and gas companies than to makers of clean technology over the years, thus running counter to Canada’s commitments under the Paris Agreement, a new report shows.

EDC is a self-financed Crown corporation that provides loans and other financial services to Canadian exporters or those making foreign investments.

The report, released Thursday by Oil Change International, spells out how EDC gave roughly $62 billion to the oil and gas sector between 2012 and 2017, but only $5 billion to clean-tech developers. The report also found that EDC sent less money to the oil and gas sector during the last two years of the Harper government than in the first two years under the Trudeau Liberals.

Upon signing the Paris Agreement, Canada committed to “financial flows” in line with the goal of reducing greenhouse-gas emissions to 30 per cent below 2005 levels by 2030. “We think this is wholly inconsistent with both Canada’s climate commitments domestically and under the Paris Agreement, and I think it’s out of step with a general trend in international finance away from fossil fuels,” said Patrick DeRochie of Environmental Defence. The Liberals have pledged to do away with all “inefficient” fossil-fuel subsidies by 2025, the Toronto Star reports.

In Canada

To help mitigate Canada’s sharp oil discount, Alberta asked the federal government last week to split the cost of additional rail cars needed to transport 120,000 barrels of surplus oil per day. This would put more rail cars in service by October 2019 until some time in 2022, sources privy to the proposal have said. Alberta estimates a one-time capital cost of $350 million, with total operating costs pushing $2.6 billion over the three years the extra rail cars would be running. Premier Rachel Notley’s office has not confirmed the details. Moving an extra 120,000 barrels daily would cover most of the current estimated oversupply in Alberta, Reuters reports.

Internationally

Global oil prices fell Thursday as crude inventories in the United States reached their highest level since last December, though rumours of an OPEC cut in output helped to limit the spill. American crude production maintained at 11.7 million barrels daily, adding to a massive inventory of 447 million barrels, the U.S. Energy Information Administration said. Further, experts expect U.S. pipeline bottlenecks to clear up in 2019, which would send even more oil to market. To counter this surge, OPEC will consider a deal to limit production when members meet on Dec. 6, Reuters reports.

On Thursday morning, Brent Crude was at US$63.54 and West Texas Intermediate US$54.48.

Noteworthy

In Opinion

In addition to Donald Trump’s “deep cuts to personal and corporate taxes,” L. Ian MacDonald suggests the federal government should worry about Canada’s huge oil discount instead of the deficit. “Every $5 drop in the price of Canadian oil costs the federal government $1 billion in taxes, and Alberta $1 billion in royalties and taxes,” MacDonald explains. The oil discount, and the ripple effect it’s having on government revenue, is what Finance Minister Bill Morneau should be concerned about, MacDonald argues in his column for iPolitics.