Politic?

This is a blog dedicated to a personal interpretation of political news of the day. I attempt to be as knowledgeable as possible before commenting and committing my thoughts to a day's communication.

Thursday, December 13, 2018

A Federation of Like-Minded Provinces

"He clearly doesn't understand what is happening in the energy sector in Alberta at this point in time."
"We have been innovators in removing carbon from the barrel -- we are going to continue to be innovators -- So I don't think the premier of Quebec understands at this point that Alberta's energy sector is leading in terms of the enhancements of the carbon molecule."
"We need to start operating as one country, as opposed to many provinces who are looking out for their own individual interests."
"Equalization does not work for Alberta."
Joe Ceci, Alberta finance minister

"[There's no] social acceptability [for a pipeline that would carry] dirty energy [through the province of Quebec."
Quebec Premier Francois Legault

"[Prime Minister Justin Trudeau's tanker ban on coastal British Columbia strips Indigenous people of economic self-determination]. Is this what reconciliation is supposed to represent in Canada?"
"All we're trying to do is take advantage of the resources available to us."
"They're [Indigenous protesters backed by activist organizations] just puppets and props for American environmental groups."
"We can produce oil in the oilpatch with a smaller carbon footprint than almost any producer on the planet."
"[Federal C-48 bill is a matter of] enormous concern [for the 200 First Nations communities the coalition represents]."
Calvin Helin, CEO, Eagle Spirit Energy Holding, Lax Kw'alaams Band member
Oil production keeps rising in Alberta, driven largely by oilsands development. (Kyle Bakx/CBC)
Alberta has failed for years to have necessary pipelines to carry away increasing oilsands production, a matter of intense frustration since it means an enormous loss of revenues. Because of the province's inability to efficiently dispatch its petroleum products for sale abroad, its oil barrels sell for vastly discounted prices that lead to multiple millions of dollars lost daily. Eagle Spirit Energy Holdings, representing a consortium of First Nations bands has plans to build a $18-billion pipeline to carry oil from Northern Alberta to Prince Rupert, B.C.

The absurdity of eastern Canada using oil imported from Saudi Arabia, rather than having Alberta oil shipped from western Canada to the east, is unspeakably inefficient, much less nonsensical. Buying oil from a questionable moral choice rather than using Canada's own natural resources is beyond unreasonable. The National Chiefs Coalition is prepared, they claim, to file a complaint in "coming days" under the United Nations Declaration of the Rights of Indigenous Peoples against the federal government for placing obstacles in the way of their shipping Alberta oil to tidewater.

Prime Minister Trudeau has pledged to see Canada's dependence on oil vastly diminished. He introduced a ban on tanker traffic in 2015 simultaneously with axing the Northern Gateway pipeline while approving the Trans Mountain pipeline, but has done just about everything in his power since then, including new intrusive legislation to frustrate pipeline investors, to the point where the owners of Trans Mountain simply gave up after years of negotiations, investment and work. The public fallout from that spurred the federal government to 'buy' the pipeline project for Canada.

It's impossible to guess when that pipeline will be up and running, since the federal government, with full intention, has thrown roadblocks in the way of it coming on stream anytime soon. Court action has ordered the federal government back to the planning stages, to more fully 'consult' with all First Nations bands whose geography would be impacted, and to institute regulations fully commensurate with protecting Canada's waterways and oceans from the potential of oil spills.
Since cuts were announced, Western Canadian Select crude has surged to almost US$41 a barrel, about US$11 less than the West Texas Intermediate futures price. The price difference between WCS and WTI was as wide as US$50 a barrel in October     Jonathan Hayward/The Canadian Press files

TransCanada Corporation had proposed a $15.7-billion pipeline, Energy East, to carry western crude through Quebec to New Brunswick to be shipped overseas, but ended up abandoning the project citing market changes, red tape, and objections from Quebec. New Brunswick is disappointed, and so is Ontario, where Saudi oil and gas is burned, not Alberta's. Alberta has been left to struggle with economic consequences of an oil-price glut collapsing prices, putting up with a deep discount on western Canadian crude resulting from transportation constraints which has led the province to cut production.

Alberta, despite its economic downturn in the constant loss of oil revenue, is considered a "have" province under the federal equalization program designed to help poorer {have-not" designated provincial governments to provide public services comparable to all other provinces. Alberta, British Columbia, Saskatchewan, Ontario, Newfoundland and Labrador are all now exempted from equalization payments, while the remaining provinces (and territories) qualify for economic relief.

Alberta is in a deficit position, Quebec can celebrate balancing their books with a surplus, but it will receive two-thirds of the total equalization kitty, at $13.1 billion. Quebec's refusal to allow a pipeline to ship Alberta crude to markets abroad results in Alberta realizing a steep loss of revenue, but it is largely from Alberta that the equalization kitty remains robust, and Quebec gets fully funded through the equalization program, a gross, immoral anomaly.

Western Canadian oil industry is losing at least $100M every day, according to analyst   CBC



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