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Re: Pipelines

Postby nepal » Sep 1st, 2018, 3:10 am

The US must be jumping with joy today, in that yet again the proposed Canadian west coast tide-water pipeline is shot down by a Canadian Court.

- US pays Canada $35/barrel for oil (We mainly only have one buyer, the US, as we can't sell on world market without tide-water access)
- The east coast of Canada imports oil from the Middle East etc, at world tide-water price of $70/barrel. (Quebec stopped the proposed Trans-Canada pipeline proposal)
- Canadians pay cndn$1.30/litre at the pumps https://www.frugal-rv-travel.com/gas-price.html
- US pays cndn$0.89/litre at the pumps

This situation is blizzar, and makes Canadians look like fools. https://business.financialpost.com/opinion/canadians-are-realizing-foreign-groups-sabotaged-our-energy-economy-for-no-good-reason

We give our oil away to the US, so they can pay ~2/3 at the pumps, yet Canadians pay ~50% more at the pumps, while we import oil on the east coast at world tide-water prices. And, Canada loses vast revenue selling oil to our only customer, US, at half the tide water price. https://oilprice.com/oil-price-charts

To top this off, the Canadian oil industry is so desparate to get at world tide-water oil pricing, that shipping oil by railway-tankers to the Port of Vancouver Is up ~50% in the past year. Ironically major US share-holders now also own much of CN and CP.https://www.nasdaq.com/symbol/cni/ownership-summary Canadian grain farmers are also losing, as now rail capacity is moving from grain exports, to oil transport. https://www.producer.com/2018/03/canadian-railways-catch-22-crude-shipment/

So, the US enjoys buying our oil at half price, and when we do try to get some of our oil to tide-water, the US still makes money by us shipping it by dangerous rail-tankers, along the Athabaska, Thompson, Fraser rivers and through Vancouver. The US is laughing all the way to the bank, thanks to locking Canadian oil into our only customer we have access to, the US, who tell us what they'll pay. The shorter and safer Northern Crossing pipeline to Kittimat, was also shot down by protestors.

When we have only one oil buyer, they pay what ever they feel like, which is even worse for the environment, as when the US can buy Canadian Oil at half price, they guzzle ultra-cheap Canadian oil. If environmentalists want Canada to help save the planet, then help to get Canadian oil up to world tide-water prices. Whose side are anti tide-water pipeline protestors really on? Higher oil price is what will decrease the use of oil, and force vehicles to be efficient.

Norway has tremendous health care, education, and public infrastructure, no debt and one $trillion in the bank, as they sell their oil at tide-water world price and get associated tax revenues from doing that. https://en.m.wikipedia.org/wiki/Government_Pension_Fund_of_Norway
By contrast, Canada sells oil half price to the US, collects half the tax revenue, is now over one $trillion in debt, health-care and education are under funded, and roads are falling apart. Further cuts to social spending are on the way, due to rising interest rates and interest Canada is paying on that debt. During higher interest rates several years ago, 1/3 of Canada's tax revenue was going just to pay interest on national debt. Colossal mismanagement of our resource wealth. https://www.cbc.ca/news/politics/federal-market-debt-1.4590441. BC is also losing tax revenue that tide-water pipelines and ports would create.

They've got us by the nuts! Tide-water oil pricing and higher oil related tax revenue is perhaps our best way out of this financial mess. Canada is in the top three of world oil reserves. Canada is very largely an oil economy. Our dollar goes up and down with the price of oil. Oil makes up ~20% of our economy. A smart Canadian government can manage our oil (and other resources), to pay off our national debt, and get us out of this mess, rather than governing to get us high on dope. It was swanky old man T. who initially got Canada into debt, and now his drama teacher son is making it worse. Mind you the other party hasn't done much better, as they squandered the opportunity to tax oil wealth when it was at $140, and pay off national debt. https://www.macleans.ca/economy/economicanalysis/of-the-last-three-federal-governments-which-had-the-best-fiscal-record/

As for the aboriginals, those along the pipeline route will likely be agreeably compensated for it. Some of the protest aboriginal groups are those who aren't physically connected to the route, but still have their hand out to profit from it. Also, there are some non-aboriginals and lobby groups, deciding for the aboriginals that they need to protest, as if the aboriginals can't make their own cognitive decisions. Aboriginals are capable of making their own decisions! Aboriginals as a whole also benefit from the prosperity of Canada.

There are many thousands of kilometres of established and safe pipelines. Maybe the reason this pipeline is being picked on, is because it is being held ransome. As for the coastal ocean environment, it is still going to receive oil ships, but the ships will be loaded from railway tankers, if the pipeline isn't available. Regarding the increased number of oil ships, perhaps the large increase in mega cruise and cargo ships could be correspondingly reduced, to help protect precious Orcas and other ocean mammals.
TM pipeline protestors have made oil transport to the west coast exponentially less safe, by forcing the oil to be precariously transported in railway tankers beside hundreds of kilometres of extremely sensitive rivers that drain into the Pacific. Clearly, this TM pipeline protest is not about saving the environment, nor respecting aboriginal rights. $.

Three Canadian tide-water world-oil-pricing pipeline proposals have been shot down: The Northern Gateway(Pacific), the Trans-Canada(Atlantic), and now the Trans-Mountain(Pacific). The only pipelines moving forward are those heading directly to the US, including the mega Keystone, which joins a host of existing US bound cheap-Canadian-oil pipelines and rail-tankers. Canadian oil remains land-locked and a warehouse of cheap oil for the US to guzzle. Who's side are Canadian tide-water pipeline protestors on! Who does the current Canadian government really represent.

Bottom-line: The pipeline is far safer than railway tankers, and helps Canadians get far higher world tide-water price and tax revenue for their oil. The oil is already on the way as are the ships, as rail-tanker capacity to Vancouver recently increased by another 100,000 barrels per day. I care for the environment too. The oil should go by safe pipeline, now, before even more rail-tanker capacity is established.
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