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Calgary Herald
a day ago
- Business
- Calgary Herald
American sand excluded from Canadian counter-tariffs, saving oilpatch millions
Sand is coarse, rough and vital to Alberta's oilpatch. Article content Around eight million tons of sand are used by the oil and gas industry every year — about two-thirds of which comes from the U.S. state of Wisconsin. Article content Article content Sand is a necessity for hydraulic fracturing, also known as fracking, which involves injecting sand, water, and, in some cases, chemicals into a well. By breaking up bedrock, the process frees up oil and gas reserves. Article content Article content As of Wednesday, sand from the United States no longer falls victim to Canadian counter-tariffs, relieving hundreds of millions in costs to the industry. Article content Article content Both silica and quartz sands are among the dozens of items listed under the U.S. 'surtax remission' order in the Canada Gazette newsletter, published on Wednesday. Sand imported before Oct. 16 falls under the order. Article content 'It's an important decision,' said Mark Scholz, president and CEO of the Canadian Association of Energy Contractors, which represents the industry. Article content The relief is also retroactive, so all tariffs paid after the announcement will be refunded, according to Scholz. He added that the federal government should be given credit for taking a 'practical and strategic approach' to dealing with global trade challenges that oil and gas, and other industries, are facing. Article content Article content When it comes to the very specific sand required for oil and gas operations, there aren't enough domestic suppliers to accommodate the demands of the industry, according to Scholz. Article content 'I think the federal government . . . looked at our situation or our case, and came to a very sensible conclusion,' he said. Article content An impact analysis statement, included in the order, noted that public consultations about the surtaxes, 'confirmed stakeholder support for these countermeasures as a necessary response to U.S. tariffs.' Article content 'However, some stakeholders noted concerns with their ability to shift supply chains due to factors such as no or limited alternative sources of supply (short supply),' the statement read. Article content Other concerns noted were requirements for certain products to comply with certification rules and product specifications or contractual requirements that meant Canadian businesses had to purchase U.S. products.
Global News
2 days ago
- Business
- Global News
Oilfield service group says relief from counter-tariffs on U.S. sand ‘fantastic news'
Canadian oil and gas drillers that import vast amounts of sand from the United States are getting relief from counter-tariffs that could have added heavy costs to industry. The sand is used in hydraulic fracturing — or fracking — to help free resources trapped in hard-to-access shale formations deep underground. It's among the imported U.S. goods on which Canada has imposed a surcharge in retaliation for President Donald Trump's flurry of tariffs. A notice in the Canada Gazette newsletter published Wednesday lists dozens of goods for which 'remission' is to be granted — including silica and quartz sand. The order applies to sand imported before Oct. 16. 'That is fantastic news for us,' said Gurpreet Lail, president and chief executive of oilfield services industry group Enserva. The retaliatory tariffs on sand alone would have added $275 million a year to industry costs, she said. Story continues below advertisement 'We work on really lean, tight budgets, and that would have been a huge blow.' Tweet This Click to share quote on Twitter: "We work on really lean, tight budgets, and that would have been a huge blow." Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Lail praised Alberta Premier Danielle Smith for pressing the issue with Ottawa. Canada's energy sector uses about eight to nine million tonnes of silica sand, and it needs to meet certain specifications, Lail said. The bulk of that — about six million tonnes — comes from Wisconsin. 0:52 Mexico, Canada coordinate as Trump warns of new USMCA tariffs The rest can be sourced in Canada, but Lail said there are too many regulatory hurdles for sand producers to scale up and meet industry's needs. 'And to flip that on a dime really quickly when retaliatory tariffs came into effect, we just weren't positioned that way,' she said. Story continues below advertisement Lail said her group is still waiting to hear whether remission will be granted for other imported goods the industry needs, like coil tubing and drill bits. In an 'impact analysis statement' accompanying the order in the Gazette, the government said it received nearly 7,000 written submissions during a public comment period on proposed counter tariffs earlier this year. 'Canadian businesses, stakeholders, and partners generally confirmed their support for Canada's surtaxes on certain U.S. goods,' it said. 'However, some stakeholders noted concerns with their ability to shift supply chains away from the United States due to limited alternative sources of supply (short supply) or the requirement for certain inputs to comply with certification requirements, product specifications or contractual obligations.' Under specific circumstances — like when goods can't be sourced from elsewhere or would severely hurt the Canadian economy — businesses can be exempt from paying tariffs or be refunded for tariffs already paid. Previously, a six-month tariff holiday was granted to goods used in Canadian manufacturing, processing and food and beverage packaging, as well as imports used to support public health, health care, public safety and national security objectives. Vehicles were also granted remission so long as they maintained Canadian production and followed through with planned investments.
Yahoo
2 days ago
- Business
- Yahoo
Oilfield service group says relief from counter-tariffs on U.S. sand 'fantastic news'
The federal government is offering Canadian oil and gas drillers counter-tariff reprieve on the vast amounts of sand they import from the United States. The sand is used in the hydraulic fracturing — or fracking — process to help free resources trapped in hard-to-access shale formations deep underground. It's among the imported U.S. goods on which Canada has imposed a surcharge in retaliation for President Donald Trump's flurry of tariffs. Sand from Wisconsin meets the specs needed by Canadian drillers, and the lion's share of what they use is brought in from the Midwestern state. A federal order published in the Canada Gazette newsletter this week says relief is available for companies that import silica and quartz sand, among other products. Gurpreet Lail, the chief executive of industry group Enserva, says it's fantastic news, as the counter-tariffs on sand alone would have cost industry $275 million a year.
Hamilton Spectator
2 days ago
- Business
- Hamilton Spectator
Oilfield service group says relief from counter-tariffs on U.S. sand ‘fantastic news'
CALGARY - The federal government is offering Canadian oil and gas drillers counter-tariff reprieve on the vast amounts of sand they import from the United States. The sand is used in the hydraulic fracturing — or fracking — process to help free resources trapped in hard-to-access shale formations deep underground. It's among the imported U.S. goods on which Canada has imposed a surcharge in retaliation for President Donald Trump's flurry of tariffs. Sand from Wisconsin meets the specs needed by Canadian drillers, and the lion's share of what they use is brought in from the Midwestern state. A federal order published in the Canada Gazette newsletter this week says relief is available for companies that import silica and quartz sand, among other products. Gurpreet Lail, the chief executive of industry group Enserva, says it's fantastic news, as the counter-tariffs on sand alone would have cost industry $275 million a year. This report by The Canadian Press was first published July 17, 2025.
Winnipeg Free Press
2 days ago
- Business
- Winnipeg Free Press
Oilfield service group says relief from counter-tariffs on U.S. sand ‘fantastic news'
CALGARY – The federal government is offering Canadian oil and gas drillers counter-tariff reprieve on the vast amounts of sand they import from the United States. The sand is used in the hydraulic fracturing — or fracking — process to help free resources trapped in hard-to-access shale formations deep underground. It's among the imported U.S. goods on which Canada has imposed a surcharge in retaliation for President Donald Trump's flurry of tariffs. Sand from Wisconsin meets the specs needed by Canadian drillers, and the lion's share of what they use is brought in from the Midwestern state. A federal order published in the Canada Gazette newsletter this week says relief is available for companies that import silica and quartz sand, among other products. Monday Mornings The latest local business news and a lookahead to the coming week. Gurpreet Lail, the chief executive of industry group Enserva, says it's fantastic news, as the counter-tariffs on sand alone would have cost industry $275 million a year. This report by The Canadian Press was first published July 17, 2025.
