Released September 28, 2022 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Following renewed tax relief for gasoline, the provincial government of Alberta said it was offering its constituents rebates to buffer against the spike in the price of natural gas.
There's a war premium emanating from the conflict in Ukraine. Since Russian forces put boots on the ground in February, there's been pressure on everything from crude oil to natural gas, refined petroleum products and grains. Resilient demand and dwindling supplies, meanwhile, continue to support commodity prices, particularly natural gas.
In Europe, alleged sabotage on Russia's Nord Stream natural gas pipeline network resulted in a 12% spike in Dutch TTF, the European benchmark for the price of natural gas. North American prices, while nowhere near the European benchmark, are still considerably higher than year-ago levels.
In response, the provincial government of Alberta said it would start a rebate program on October 1 that's meant to help its constituents cope with the soaring price of commodities. The natural gas rebate comes on top of a similar program for electricity and a pause in a provincial gasoline tax.
"This rebate program provides real protection and certainty to help families, farms and businesses manage heating costs and keep life affordable," said Dale Nally, Alberta's associate minister of natural gas and electricity. "With the cost of living rising around the world, Albertans can trust that, if natural prices go any higher, we have rebates ready to help protect them."
Alberta is the main natural gas supplier to Canada, but nearly half of what it produces gets consumed at home. Total Canadian natural gas supply exceeds current demand levels, though its market is tied tightly to the United States, and both sides tend to trade resources across the border.
Even though Alberta's gas market is centered largely in North America, it's still a global market where events such as the issue with Nord Stream have widespread consequences.
To that end, Alberta has said throughout the year that it may be able to provide some sense of relief to the ongoing energy crisis. The province sits on some of the largest oil deposits in the world, on par with the likes of Venezuela, but it's also adopted something of a green agenda.
Its oil industry, for example, is highly polluting, though Alberta's government is investing more than US$1 billion over the next 15 years to build two large-scale carbon capture and sequestration projects in an effort to lower its environmental footprint.
It was that all-of-the-above type of policy that Mathias Corman, the secretary-general of the Organization for Economic Cooperation and Development, said was essential to navigate the so-called energy crisis.
On one hand, major consuming nations are struggling to secure supplies of essential commodities such as crude oil and natural gas. On the other, the energy transition toward greener alternatives that began during the pandemic is slowing in response to the current economic climate.
"Fiscal support can help cushion the impact of high energy costs on households and companies, but should be concentrated on aiding the most vulnerable and preserve incentives to reduce energy consumption," Corman added.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
There's a war premium emanating from the conflict in Ukraine. Since Russian forces put boots on the ground in February, there's been pressure on everything from crude oil to natural gas, refined petroleum products and grains. Resilient demand and dwindling supplies, meanwhile, continue to support commodity prices, particularly natural gas.
In Europe, alleged sabotage on Russia's Nord Stream natural gas pipeline network resulted in a 12% spike in Dutch TTF, the European benchmark for the price of natural gas. North American prices, while nowhere near the European benchmark, are still considerably higher than year-ago levels.
In response, the provincial government of Alberta said it would start a rebate program on October 1 that's meant to help its constituents cope with the soaring price of commodities. The natural gas rebate comes on top of a similar program for electricity and a pause in a provincial gasoline tax.
"This rebate program provides real protection and certainty to help families, farms and businesses manage heating costs and keep life affordable," said Dale Nally, Alberta's associate minister of natural gas and electricity. "With the cost of living rising around the world, Albertans can trust that, if natural prices go any higher, we have rebates ready to help protect them."
Alberta is the main natural gas supplier to Canada, but nearly half of what it produces gets consumed at home. Total Canadian natural gas supply exceeds current demand levels, though its market is tied tightly to the United States, and both sides tend to trade resources across the border.
Even though Alberta's gas market is centered largely in North America, it's still a global market where events such as the issue with Nord Stream have widespread consequences.
To that end, Alberta has said throughout the year that it may be able to provide some sense of relief to the ongoing energy crisis. The province sits on some of the largest oil deposits in the world, on par with the likes of Venezuela, but it's also adopted something of a green agenda.
Its oil industry, for example, is highly polluting, though Alberta's government is investing more than US$1 billion over the next 15 years to build two large-scale carbon capture and sequestration projects in an effort to lower its environmental footprint.
It was that all-of-the-above type of policy that Mathias Corman, the secretary-general of the Organization for Economic Cooperation and Development, said was essential to navigate the so-called energy crisis.
On one hand, major consuming nations are struggling to secure supplies of essential commodities such as crude oil and natural gas. On the other, the energy transition toward greener alternatives that began during the pandemic is slowing in response to the current economic climate.
"Fiscal support can help cushion the impact of high energy costs on households and companies, but should be concentrated on aiding the most vulnerable and preserve incentives to reduce energy consumption," Corman added.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
