From The Globe and Mail, “Canada’s economy keeps roaring ahead“:

The Canadian economy, already the envy of the Group of Seven, is within striking distance of returning to its pre-recession peak.

Fuelled by a hot housing market, a rebounding manufacturing sector, higher incomes and a mini-hiring boom, the economy expanded in the first three months of the year at the fastest annualized pace in more than a decade. The stronger-than-expected 6.1-per-cent rate reported by Statistics Canada Monday was more than twice the rate of growth in the United States in the same period.

Looking at the March update, as well, we’d highlight the energy sector. More from the StatsCan release:

Manufacturing rose 1.8% in March with 20 of the 21 major groups advancing. Manufacturers of machinery, primary and fabricated metal products, as well as non-metallic mineral and food products recorded significant production increases.

Mining and oil and gas extraction rose 2.7%, mainly as a result of a significant increase in oil extraction. Increased activity at copper, nickel, lead and zinc mines, as well as at gold and silver ore mines also contributed to the growth. Support activities for mining and oil and gas extraction retreated after seven consecutive monthly increases.

It’s tempting to add this news to the ever-lengthening list of California’s self-destructive actions, but the unfortunate reality is that litigation to slow and stop energy-related projects is a national phenomenon.

From Chevron, a news release, “Chevron Stops Construction of Richmond Refinery Renewal Project –
More than 1,000 workers lose jobs with project that improves air quality”:

RICHMOND, Calif., July 13, 2009 –Chevron’s Richmond Refinery management today
announced that it has stopped all work on a refinery upgrade and modernization project that would have replaced old equipment with newer, cleaner technology.

More than one thousand construction workers are without jobs as a result of the stoppage which was ordered by the Contra Costa County Superior Court on July 1, 2009. The decision was made in response to a request for a work stoppage order by Communities for a Better Environment, the West County Toxics Coalition and the Asian Pacific Environmental Network.

“While Chevron disagrees with the Court’s decision, we are complying with Court’s order made
at the plaintiffs’ request and have stopped all work on the project,” said refinery manager Mike Coyle.

“More than one thousand people are now out of work. By mid-week, 100 construction workers will remain for the period of time necessary to complete the safe demobilization of the Renewal Project.”

The environmental groups are, of course, thrilled with their victory. From the various groups, a release posted at Communities for a Better Environment, “Community and Public Health Advocates Halt Chevron
Refinery Expansion at Richmond, CA“:

“Today is a great victory for the people of Richmond. We stand with the workers, who, through no fault of their own, began working on a project that was not legal,” said Greg Karras of Communities for a Better Environment.

We stand with the workers — on the unemployment line.

P.S.  Although Chevron says it plans to refine light and intermediate crude at the expanded refinery, not heavy crude, the environmentalists have campaigned against the Richmond refinery project as part of their broad attack against “high-carbon” fuels.  One of the goals of these anti-energy groups in demonizing this form of crude is to shut down the Alberta oil sands and prevent any development of shale oil or tar sands in the United States.

Missing from U.S. Trade Rep Ron Kirk’s admirable speech Thursday (see posts here and here) expressing the Obama Administration support of expanded trade was any mention of the Mexican truck controversy, i.e., the NAFTA-violating provision in the stimulus bill that effectively ended a cross-border trucking program. In response, Mexico slapped duties on 90-plus U.S. products, especially consumer and agricultural products. Here’s the latest consequence, as reported in the Green Bay Press-Gazette, “Mexican tariffs impede paper company exports.”

You can only address so many issues in a speech, and in any case, Kirk’s remarks emphasizing the importance of enforcing trade agreements were relevant. The United States should indeed aggressively address violations of trade agreements through established processes and authorities. As a country that generally embraces trade, those procedures will tend to favor the United States.

But not always. We see that California Gov. Arnold Schwarzenegger is trumpeting yet another market-distorting, cost-adding environmental regulation, the low-carbon fuels standard. As AP reports, the Governor expressed utopiangastic pleasure at the California Air Resources Board’s decision:

Gov. Arnold Schwarzenegger said the rule would “reward innovation, expand consumer choice and encourage the private investment we need to transform our energy infrastructure.”

Sure. Just like all the other excessive environmental rules adopted over the past decade in California. And how’s California doing?

• Los Angeles Times, “California unemployment rate reaches 11.2%“
• The Desert sun, “State leads nation in March layoffs“
• The Daily Sound, “Economists: things could be worse in SB County“

Then there is the trade angle. The state regulations have an obvious and disproportionate impact on fuels derived from Alberta’s oilsands, which require additional energy to process. From The Los Angeles Times: “Canada’s consul general in San Francisco charged that the rule discriminates against oil from Alberta tar sands. ”

Canada is the No. 1 supplier of foreign crude to the United States, and now California is declaring its own (non-tariff) trade (barrier) war against those imports. But just because they’re not tariffs or quotas doesn’t make the regulations any less a servant of the protectionist cause — especially since they represent unilateral state action.

And what form might retaliation take, a year or two down the road? The new Mexican tariffs hammered California farm products. That could look like a smart strategy to the Canadians.

Seems like the big economic news in Canada was happening in Atlanta yesterday. Or at least being reported from there (see posts below here and here).

From the Globe and Mail:  

CALGARY AND OTTAWA — Three groups have quit a government-sponsored forum for assessing environmental costs in the oil sands, a move that undercuts government efforts to burnish the image of the massive developments in U.S. markets.

The latest flare-up between the Alberta government and environmental activists came as federal Industry Minister Jim Prentice sought to reassure an international audience that the oil sands are being developed in a responsible way and are critical to U.S. energy security.

“Developing our oil sands has had its environmental challenges, but we’ve come a long way,” he told an Americas Competitiveness Forum.

The story notes that anti-energy environmentalists in Canada have gained support in the U.S. Congress for their campaign against the oil sands. (See this story about the ban on U.S. government purchases of the oil.)

In Atlanta, Industry Minister Jim Prentice reminded the U.S. attendees of the Americas Competitiveness Forum that Canada has been the No. 1 energy exporter to the United States since 1999 and claims 14 percent of the world’s oil reserves. (Ottawa Citizen story.)