00:04:36.180Yeah, the premises of what she said is extremely alarming.
00:04:41.820And as politicians, you think you'd be listening carefully what comes out of your own mouth.
00:04:47.360And when businesses tell you, we do not want to put our capital up,
00:04:53.320We do not trust the playground that you created for us to actually finish building what or even start building what we want to build here.
00:05:03.080And we need taxpayer dollars essentially babysitting this project.
00:05:08.200This should be very alarming to policymakers.
00:05:11.740And it seems like this announcement is such a celebration, but the details and the fundamentals have been completely lost on what's actually happening.
00:05:22.540and we should not be stepping up with taxpayer dollars to babysit projects
00:05:29.020just because we can't navigate our own red tape.
00:05:32.640The government should be removing the red tape.
00:05:35.240I don't mind the government buying into projects such as a pipeline in general
00:05:39.980for the benefit of taxpayers directly,
00:05:42.620but the fact that we have to do it to get anything done in this country
00:05:49.080and i guess the other aspect too is the capitulation on the northern route which she had been pretty
00:05:57.180strong on for the longest time saying no it's got to go through the fastest route is straight west
00:06:04.020to the coast to kitamat or wherever and uh unfortunately the ongoing tanker ban makes that
00:06:12.640argument moot doesn't it yeah absolutely so the issue with this pipeline project is uh it's it's
00:06:21.800basically announced in the way that this will be the last pipeline project to the west coast
00:06:27.380in canada and with this tanker band which is essentially shuts down the door uh this this
00:06:34.440new announcement is going to follow to the tmx route is going to come out of the delta a new
00:06:39.400port expansion which still requires 10 billion dollars and a lot of work to happen um but yeah
00:06:47.000it's and it's because it will save years of consultation with first nations and a lot of
00:06:52.700ngos and activists that don't want it to come out out of uh prince rupert essentially it's not going
00:06:58.360to come out of kitab but it would have been uh coming out of uh prince rupert and let's remember
00:07:04.220that this area i'm i'm actually here right now on the coast uh has lng projects has lng tankers
00:07:13.120has it's one of the busiest ports so there's plenty of activities on the coast here and we
00:07:20.660still have this bizarre opinion in canada that we ship oil in some kind of wooden boats you know
00:07:28.360there's over 4 000 active oil tankers every single day in oceans in canada we move 80 million barrels
00:07:37.560of oil every single day in oceans and 99.997 of it it come leaves point eight and goes to point b
00:07:46.760with zero spills zero issues or anything that happens along the way and it's one of the most
00:07:53.000highly it's probably the most successful form of transportation of any good in the world
00:07:58.500and we're acting like it's you know it's a bunch of people in a rowing boat or something
00:08:02.780yeah normally you come to us from calgary but you're actually out in the west coast right now
00:08:08.140is there much discussion there because of course uh if you're going to ship a lot more oil
00:08:15.180from that area i guess this is south of vancouver then that whole area is going to grow it's going
00:08:21.240explode right in terms of economic activity is there much buzz around that or is there more
00:08:27.240cynicism because of what's happened in the past with cancellations of various projects
00:08:33.320yeah you know it's actually an interesting question because this this area is you know the
00:08:39.480the southern part of bc is kind of used to it already and the port expansion has to happen
00:08:46.440uh you know even just for the tmx pipeline expansion they have to uh make the broad uh
00:08:53.160they have to dredge it they have to make it deeper so the bigger tankers can actually come and
00:08:57.560get the oil out of it so they can be fully loaded because right now that we can't bring in full
00:09:03.160tankers to fill up fill them up completely uh so there's a lot of uh waste uh inefficiencies that
00:09:10.120needs to be done in this part but this part is already kind of used to a lot of movement
00:09:15.080the unfortunate part is of moving this pipeline from the north coast to the this current route is
00:09:23.640that this pipeline could have really benefited a lot of small rural communities and it could have
00:09:30.860you know mark carney was saying that this project would be worth in general close to 200 billion
00:09:37.820dollars in different uh uh at minimum it in different aspects it will bring 200 billion
00:09:44.140dollars to the economy and if this that kind of value would have came to the northern communities
00:09:49.740it would have been absolutely massive and game-changing for a lot of this little towns
00:09:53.900here so it's such a in an inefficient economic development from you know every single angle
00:10:01.340i can't hear you i'm sorry let's try that again i wonder if there's a political angle to this as
00:10:13.560well kirk because the liberals have a lot more support in the vancouver area than they do in
00:10:20.680northern british columbia where they don't get in at all it's very conservative out there
00:10:26.160And, I mean, to have built that pipeline straight west to the coast, then that would have been an economic driver for those communities.
00:10:37.980A lot more people would have moved up there, and eventually that would have translated into economic power.
00:10:43.220And if it stayed conservative, which is usually the case in areas like that, then they would have gained politically, conservatives would have gained politically over the course of years as a result of having that pipeline go north.
00:11:00.320Do you think that might be a factor here or not?
00:11:02.320well well it's an interesting question and because you know when we look back into i think it was
00:11:11.380soon after mark carney got elected it was one of his first visits to pacific northwest um when he
00:11:18.840went to haida guai he met with uh essentially a group of first nations or representative which
00:11:25.780is basically a foreign funded ngo and he told them no pipeline up there so it's it's completely a
00:11:33.940political influence decision to appease uh certain groups it has nothing to do with rationale or
00:11:41.360economics remember we a part of this pipeline there's a whole bunch of carbon capture industrial
00:11:48.320carbon taxes increasing everything and he just chose a route that will create more emissions
00:11:54.820in general than just running into the west coast and make it quicker remember out of the delta
00:12:01.300peninsula there they'll still have to go around vancouver ireland around different areas just to
00:12:06.220go out to the east coast uh to asia and out of the west coast out to out of prince duper they
00:12:13.560don't have to do it it's just a straight shot and it's it's absolutely bizarre decision all around
00:12:21.180but it's because they can't navigate their own red tape.
00:12:25.300Is this a loss, do you think, for Premier Smith,
00:12:28.760who was, as I said, adamant that it was going to be a northern route,
00:12:34.300and now here she is basically caving, saying,
00:16:15.040You know, there's thousands of products made out of oil, petroleum products, you know, everything we use every single day, like different plastics, medicine, you name it.
00:16:26.140And they still think that it's just an energy transition thing.
00:16:31.180the reality is the more people demand different products the more growth the more roads we pave
00:16:38.260the more uh people would transition from lower class around the world to um to upper class they
00:16:45.520demand more products and that's essentially the main driver of oil demand right now uh it's it's
00:16:52.800it's the biggest driver of oil barrels in parts of the world um and they completely ignore this
00:17:00.340aspect of it let's remember i think it was like a couple years ago before the carney government
00:17:05.780uh but they they thought that oil demand is coming to an end which is one of the reasons that they
00:17:12.260essentially did not want to do any more resource development which is you know they pretty much
00:17:18.180bought into every single activist nonsense talking point and that and that was the
00:17:25.220the canadian policy in regards to our resource development which is highly unfortunate
00:17:30.340I think the final, the other aspect that I want to run past you before we wrap things up is the apparent failure of KUSMA slash USMCA.
00:17:40.580So that's also another cloud over this country right now.
00:17:45.040And I'm wondering if he doesn't see oil as kind of a necessary step, because we may not be able to trade as much with the United States as we used to, to rely on that big American market to buy our products.
00:18:02.260And that means something else has to pick up the slack economically.
00:18:07.860And yes, I mean, if you believe that they still think oil is demonically evil and is leading to an existential crisis, you know, of, you know, monumental terms, the future of the planet, you know.
00:18:28.740And now they're flipping on that because they're looking at the economic blowback from the failure of Kuzma and the USMCA and a belligerent administration in Washington that doesn't seem to be all that keen on buying our stuff.
00:18:46.800To what degree has that played into the Fed's thinking, do you think?
00:18:50.080well i think they i don't know if this decision has as much to do with tus as much has to do with
00:18:59.180the global pressures let's remember we had for years different partners from around the world
00:19:05.480come to us and say we need more energy we need more of your oil and gas and for years we told
00:19:11.800them there is no business case and now because of the war in iran uh you know the world kind of
00:19:18.160realize that you can weaponize supply routes and this was the biggest issue you know the most
00:19:26.080important thing about energy in general is its predictability you can't have supply and stops
00:19:31.460have supply and then stop and can that can provide predictable energy and i think there was just so0.90
00:19:39.340much pressure from around the world in canada to actually get some shit done that it's we're
00:19:43.940finally getting to it but let's remember that this project will not be finished by 2035 we still have
00:19:50.980a long time to go and customer is a current situation it's a really serious situation
00:19:56.600we know any any changes into overall tariff and access structure even one percent of it will cause
00:20:05.700canada and like a full-blown recession and one of the issues that we have here is if if you look at
00:20:13.080the last manufacturing reports from the us they're actually growing it starting to grow
00:20:18.520double digits like the manufacturing industry on a broad spectrum is growing really fast
00:20:25.640and in canada if you look at the manufacturing specifically it's actually decreasing the number
00:20:30.680of businesses we have so even if we wanted to pivot and export different industries that's not
00:20:36.600just our oil and gas we just have we just don't have the ability to do so because we don't have
00:20:42.280businesses to do so with so again we have to look internally and support entrepreneurship
00:20:49.720uh instead of you know trying to think that the government can back with taxpayer dollars every
00:20:56.520single industry in this country kirk another people find you online uh kirk libimov on substack on
00:21:06.600x and facebook i appreciate you coming on the show today thank you so much thank you
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