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Hughes: Selling Off Fossil Resources at ‘Bargain Basement Prices’ is Poor Energy Strategy for Canada

October 28, 2018
Reading time: 2 minutes

BeforeItStarts/flickr

BeforeItStarts/flickr

Canada’s current practice of harvesting bitumen and fracked oil and gas and selling them off at bargain basement prices is a poor excuse for an energy strategy, Alberta-based earth scientist J. David Hughes argues in a recent opinion piece for the Edmonton Journal.

Particularly when, “like it or not, we need to plan for a major transition over the coming decades from our reliance on fossil fuels to renewable energy.”

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While Canadians will likely need some oil and gas for the foreseeable future, Hughes writes, the majority of today’s production is exported. That means getting a low price for the resource, while driving production high enough that the rest of Canada would have to decrease greenhouse gas emissions 49% by 2030 and 84% by 2050 to hit the country’s targets under the Paris Agreement.

He calls that “an unlikely prospect barring economic collapse.”

Whenever talk turns to a managed decline in Canada’s fossil production, the first thing the industry’s boosters talk about is the revenue it apparently provides to fund public services. But Hughes, citing data from the Canadian Association of Petroleum Producers, notes that fossil royalties fell 44% from 2000 and 2017—from C$11.9 to $6.6 billion—while hydrocarbon liquids production grew 77%. The effective royalty rate fell from 18.3 to 6.2% across Canada, and from 19.5 to 5.1% in Alberta.

And yet, “Canada has no energy plan beyond pedal-to-the-metal export of its non-renewable energy assets,” Hughes writes. “The rhetoric from Premier Rachel Notley’s government that the sky will fall without [the Trans Mountain pipeline expansion] and the federal government’s ‘national interest’ justification for buying it have no merit.”

The alternative, he asserts, is to “look at the big picture and develop a viable energy plan that will meet Canada’s long-term energy needs and emissions reduction targets.”







in Canada, Carbon Pricing, Energy Politics, Fracking & LNG, Oil & Gas, Oil Sands, Subnational

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The End of the World vs. the End of the Week: Carney’s Pushback on Trump’s Bullying Could Point to the Next Energy Transition Moment

by Mitchell Beer
August 23, 2026

…

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Hughes: Selling Off Fossil Resources at ‘Bargain Basement Prices’ is Poor Energy Strategy for Canada

October 28, 2018
Reading time: 2 minutes

BeforeItStarts/flickr

BeforeItStarts/flickr

Canada’s current practice of harvesting bitumen and fracked oil and gas and selling them off at bargain basement prices is a poor excuse for an energy strategy, Alberta-based earth scientist J. David Hughes argues in a recent opinion piece for the Edmonton Journal.

Particularly when, “like it or not, we need to plan for a major transition over the coming decades from our reliance on fossil fuels to renewable energy.”

Get the latest climate news and analysis, direct to your inbox.

Subscribe Today

View our latest digests

While Canadians will likely need some oil and gas for the foreseeable future, Hughes writes, the majority of today’s production is exported. That means getting a low price for the resource, while driving production high enough that the rest of Canada would have to decrease greenhouse gas emissions 49% by 2030 and 84% by 2050 to hit the country’s targets under the Paris Agreement.

He calls that “an unlikely prospect barring economic collapse.”

Whenever talk turns to a managed decline in Canada’s fossil production, the first thing the industry’s boosters talk about is the revenue it apparently provides to fund public services. But Hughes, citing data from the Canadian Association of Petroleum Producers, notes that fossil royalties fell 44% from 2000 and 2017—from C$11.9 to $6.6 billion—while hydrocarbon liquids production grew 77%. The effective royalty rate fell from 18.3 to 6.2% across Canada, and from 19.5 to 5.1% in Alberta.

And yet, “Canada has no energy plan beyond pedal-to-the-metal export of its non-renewable energy assets,” Hughes writes. “The rhetoric from Premier Rachel Notley’s government that the sky will fall without [the Trans Mountain pipeline expansion] and the federal government’s ‘national interest’ justification for buying it have no merit.”

The alternative, he asserts, is to “look at the big picture and develop a viable energy plan that will meet Canada’s long-term energy needs and emissions reduction targets.”







in Canada, Carbon Pricing, Energy Politics, Fracking & LNG, Oil & Gas, Oil Sands, Subnational

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

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Trending Stories

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540+ Dead, Hundreds Missing as Towering Flash Flood in Nepal Points to Extreme Heat, Heavy Rainfalls

August 28, 2026
1000
Sarah Yurchevich

Alberta Woman Maps Out the Facts About Power-Hungry Data Centres

August 25, 2026
755
picryl

Trump Trade War Could Be a Catalyst to Speed Canada’s Energy Transition, Experts Say

August 25, 2026
720

The End of the World vs. the End of the Week: Carney’s Pushback on Trump’s Bullying Could Point to the Next Energy Transition Moment

by Mitchell Beer
August 23, 2026

…

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