$5.00 per barrel last Friday.
This now comes south already to Oklahoma. Then to Pontiac, Illinois.
Up to Griffith, Indiana and thence to Sarnia, Ontario.
This is refined in the Chicago area refineries.
A 3 to 4 billion dollar refinery was built in Whiting, Indiana just 5 or 6 years ago to process this nasty crude for diesel and aircraft fuel.
The margin on Tar sands oil that allows it to generate a profit is so low the only ways they can profit of this stuff is by producing ever more of it and slashing input costs. Delivering oil by pipeline as opposed to rail saves about 30 cents a barrel .
These Tarsands plant can not operate with Government dollars. The “Free market” Government in Alberta is an absolute joke. None of these plants would ever have been built without Government cheese. Alberta could have used monies raised so as to diversify their economy 30 years ago. Instead they just invested more in Big Oil. Big oil will now bleed them dry.
The Alberta debt is greater than Illinois. I was shocked!!
The steel pipe purchased for XL sits in Mississippi mud field. It came from India.
I am concerned about its quality for strength, ductility, welding.
Strongly urge using double pipe under all creeks and rivers.
The outer pipe to inner pipe distance is called the annulus.
This would have a slight vacumn. If the inner pipe has a failure,
the pressure inside the annulus goes way up and sets off the alarm,
This prevents oil in rivers, settling into the river silt as it is in
Battle Creek, Michigan from the Enbridge (Canadian) rupture years ago.
This mess is still not cleaned up.
The only loyalty a capitalist has is to money. They just don’t give a damn about anything else. Their lives must be very boring but disastrous for everyone else.
Again in 1974 Alberta retained 44 percent of all revenues from the sale of their oil to the world market. This was before the tarsands and based on oil coming from more conventional fields.
They then started promoting the tarsands and the Oil majors insisted that in order to be “profitable” more of the revenues from the sale of that Oil needed to go to the Corporations.
The Alberta Government now retains less then 5 percent of all revenues from oil. Since the production of oil went up dramatically based on that tarsand supply they also cut income taxes so as to ensure they would win consecutive elections.
Low taxes, high spending, subsidies to Big oil as they took profits out to fill the pockets of the investor class resulted in ever growing debt. They now blame their failure on “environmentalists”
Jason Kenny…this decision was NOT ,well thought out. Who were your advisers…the Oil Companies? . What about the needs of the citizens of Alberta? Lost wages, face masks, face shields, Nitrate gloves, disposable gowns? What were you thinking?
Mr.Blair M. Phillips
St. Catharines, Ontario
Capitalism is the enemy of all of humanity, and of our Sacred Mother Earth!
The truth is that Alberta did build up a sovereign wealth fund 30 or 40 years ago, under the Lougheed government. But then it was given away in tax breaks for the rich and gifts to the Oil industry which, I believe, pays less in royalties than just about anywhere else in the world.
As to this gesture it won’t lead to anything except a windfall for transcanada shareholders and management- nobody wants Alberta dilbit and nobody is going to want it in future. The current price is actually lower than the cost of transportation, even by pipeline.
I see that you know more about it than I do. Thanks .
Yes, I posted a link to an article the other day. It showed that had Alberta kept to the original Lougheed plan with that trust fund it would be worth 890 billion today. Norway retains around 70 percent of all oil revenues. They started their own fund years after Alberta and have pumped less in sum total then Alberta. Their trust fund is 1.2 trillion.
The Politicians sold the people of Alberta down the river and the people of Alberta voted for that in return for “jobs and lower taxes”
At least Texas has Austin and San Antonio. No comparables in Alberta.
Canada’s Petro Province has been completely captured by the petroleum industry,
as documented by former Official Opposition leader Kevin Taft in Oil’s Deep State:
How the petroleum industry undermines democracy and stops action on global warming
– in Alberta, and in Ottawa. Media, civil service, even the professedly social democratic NDP
when it lucked into office a few years ago, all bow down deeply to oil.
I don’t think tar sands can be worked profitably for $5 a barrel of oil…Throwing bad money after bad…
Kenney is the Koch Bros. golem - a similcrum that is a mix of everything nasty (tRump’s newest word) stirred into being by an evil alchemist who resembles the likes of McConnell and Graham as well as the oil billionaires themselves. He has neither a moral or an ethical bone in his body.