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02:10
Canada: Canadian energy sector braces for potential US tariffs
Alberta Province, Canada - Recent Canada's energy industry is preparing for possible disruptions as the country faces the Trump administration's looming threat of a 25 percent tariff. Following his presidential election victory in November, Trump announced he would sign an executive order imposing a 25-percent tariff on all Canadian goods imported into the United States. Concerns are rising in Canada over the tariff threat, particularly its potential consequences for the energy sector. Turner Valley, located about 80 kilometers from Calgary in the Canadian Province of Alberta, is a key hub for the region's petroleum industry, with visible signs of energy production throughout. In 1914, a wet natural gas eruption from a well bore in the area laid the foundation for Alberta's petrochemical industry, marking the start of the modern era of oil and gas exploration and processing. However, the threat of sweeping tariffs poses a potential challenge to energy companies in the region. Signs are already emerging that peripheral companies are preparing for a fallout by scaling back operations and looking for new opportunities elsewhere. Jeff LaFrenz, CEO and co-founder of Calgary-based VizworX, a custom software development firm, works with clients across the energy industry. The impact of these tariffs would not be confined to Canada alone. U.S. refineries, particularly those in the Midwest, process nearly all of Canada's crude oil exports. A potential tariff could increase the cost of refining, with the possibility of those higher costs being passed on to consumers. While the prospect of U.S. tariffs on Canadian goods presents significant challenges for the energy industry, LaFrenz views it as a chance to explore new avenues. Shotlist: Alberta Province, Canada - Recent: 1. Various of signs reading "Turner Valley", "Alberta", "Cowboy Trail"; 2. Various of petrochemical plant, oil drilling rig in operation; 3. SOUNDBITE (English) Grant Strem, advisor, energy sector (starting with shot 2): "Canada makes approximately four and a half million barrels a day of oil, almost all of it going to the United States as an export product. So with that backdrop, a 25 percent tariff on 140 billion dollars is roughly 35 billion dollars a year, and that is something that will have a major local Canadian economic impact."; 4. Various of road, mountain, watch tower, oil drilling rig, pasture; 5. Various of Jeff Lafrenz, founder, CEO of VizworX, custom software development company, working; 6. SOUNDBITE (English) Jeff Lafrenz, founder; CEO, VizworX (starting with shot 5/partially overlaid with shot 7/ending with shot 8): "We're looking at this from the perspective of, okay, maybe the U.S. stuff gets put off now, and maybe we go after these other ones, which we seem to have more traction and more trust that we can actually move forward on that. And so ultimately, when those questions are raised, you're going to start looking for places where there's less risk. And right now, the U.S. is becoming more risk at this point."; [SHOT OVERLAYING SOUNDBITE] 7. Virtual reality headsets; [SHOT OVERLAYING SOUNDBITE] 8. Various of petrochemical plant; 9. Jeff in discussion with reporter; 10. SOUNDBITE (English) Jeff Lafrenz, founder; CEO, VizworX (starting with shot 9/ending with shot 11): "These kind of events force us to look to other places and find opportunities we may not have really considered before, but actually might even be better in many cases."; 11. Various of mountains, pasture, petrochemical plant. [Restriction - No access Chinese mainland]
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