Engaging Articles of the Week
I guess living in Greenland toughens you up, seriously…as the smoke starts to clear on the ultimate objectives of the US’ tariff blitz, and not implying clarity of any kind but a bit of an objective coming into focus, it seems that the overarching goal may have been to force nations to choose between having the US as a major trading partner, or China. At the same time, the US is making no bones about its need to gain security around the North American continent, continuously stating a need to control waterways from the Panama Canal to the Arctic in the name of national security, including making very firm statements about the relevance of Greenland in this equation. How firm? Well, here’s Trump on Greenland: “We need Greenland for national security and international security…we’ll go as far as we have to go. We need Greenland…if we don’t have Greenland, we can’t have international security.” Fairly clear on that point, wouldn’t you say? So…news breaks this week that Greenland’s foreign minister has stated that it is seeking deeper cooperation with China, including a possible free trade agreement. I think I just heard a fork drop in the White House. In other news, a new Greenland Wildlife Federation brochure recommends, if encountering a polar bear, to calmly kick it right in the cojones. Story here.
Speaking of challenges standing in the way of Trump’s ambitions…a cornerstone of what President Trump is looking to accomplish is to force, in a brutally rapid way, the resurrection of the largely abandoned US manufacturing sector, those hundreds of square miles of empty brick buildings in Cleveland, or the vast apocalyptic wasteland-movie set that is Gary, Indiana. (Not picking on them, what happened is a tragedy with a million heart-aching stories, it’s just a sad fact…even the city’s positivity-filled news releases have a wounded-animal vibe: “Gary’s Work B.I.G Initiative Tackles Blight and Offers employment to Residents”.) So anyway massive global tariffs are the jolt which will bring forth this renaissance. Not so fast, says…anyone currently doing business with China. A guy on X posted a fascinating video of a California tech company spokesman, venting his spleen, that explains the problem. The tech guy explains how he imports steel housings for high tech equipment. He can’t buy them in the US because, per his words, “Americans are a bunch of babies.” Not my words American friends…he describes how he tried to source the housings from multiple US manufacturers, who are unhelpful in any number of ways – minimum quantities demanded, refusal to offer powder coating, no shipping (“You’ll have to come get them yourself”), whiny requests for more detail (“ ‘Well how are we supposed to make this’…well I don’t know, I sent you the CAD design…I’m like I’m not a metal shop person, we’re a software development company…like that’s not my job!…I give this to China and they say no problem, 6 weeks later I have these beautiful products in my hand for a tenth the price…even with the tariffs I’m still gonna make these in China…[editing out the really nasty comments about US bidders]…with a million times less headache…I cannot find a single US company that has been a breeze to work with, they’ve all been a f____ing nightmare, and every single company I’ve ever talked to in China has just been like so easy to work with…they tell you if they can do it or not and if they can’t they’ll send you to their friend that does it…” A bit of shock therapy for sure, and definitely harsh, but…a tone sadly right in tune with the way trade talk is going these days. Reshoring industry is a multi-decade challenge, without a doubt. (The initial comments below the video are perfect: Observer 1: “which company is this? Do you know?” Guy who posted the video: “I do not know.” Observer 2: “The hat he wears may be a clue.” Observer 3: “God dammit. This exchange reinforces the video’s point. Ugh”) Video here.
Everyone forgets about liquids…after a decade of animosity towards hydrocarbon exports, Canada is now in love with the idea, with something like 75-80 percent of the country’s population in favour of cross-country hydrocarbon pipelines, including the former bastions of resistance (the remaining percent still opposed still hold the most powerful seats in the land, however, so we’ll see how they reflect ‘the will of the people’ soon enough…). There was much jubilation when TMX entered service, adding another 890 barrels per day of export service. Flying almost completely under the radar though is the significant growth in liquids exports, primarily propane, and much of it seaborne barrels destined for Asia. In 2018, Canada exported no waterborne barrels of propane; in 2024, exports approached 90,000 b/d over the water, destined for Asia. Combined propane and butane exports averaged over 150,000 b/d in the fourth quarter of 2024. Within a few years, propane/butane seaborne export capacity is expected to increase by an additional 70,000 b/d, bringing total waterborne exports to about 225,000 b/d. Adding this volume to the 100,000+ b/d exported to the US, and it’s turning into some real numbers. At an average propane/butane price of ~30% of WTI, and with WTI at even $60 US/bbl, Canada’s propane and butane exports are worth a combined $3 billion per year. Nothing to sneeze at. But oh yeah, Canada’s total crude/natural gas exports in 2024 totalled ~$150 billion – as much as the combined value of the next 4 top export items on the list (vehicles, machinery/computers, gems/precious metals, and electrical machinery/equipment). And that’s how you make $3 billion per year seem insignificant. (Which it’s not; propane is a critical heating fuel.) Articles here and here and here.
Come see the lighter side of energy, and think of it as you never have before in The End of Fossil Fuel Insanity – the energy story for those that don’t live in the energy world, but want to find out. And laugh. Available at Amazon.ca, Indigo.ca, or Amazon.com.
Read more insightful analysis from Terry Etam here, or email Terry here.