Tuesday, August 06, 2013

The Eastern Pipeline Yes? Probably Not!

Consider first the Conservative Majority across Canada that see problems in getting elected again! Now, onto the phantom eastern pipeline and the hoopla surrounding it.  The last time they were in so much trouble they promised a royalty overhaul giving Albertans big profits.  It was a pie in the sky document on the eve of the election that was on analysis; impossible.  Royalty dropped from 16% to 6% and the funds were changed from USD to Can$ a to taxpayers of 18% at that time.

This brings me to the dog and pony show they are now pushing with hopes of winning another election. At Election time they will run out their fear and anxiety card; vote for us or loose a major pipeline.  If you do put them back in; it's my bet and, I'm seldom wrong; there will be no pipeline.  The excuse given; Quebec hold out killed possibilities.

India was obliged by the US to shut down a major Nuclear Generation facility because it could produce Weapons Grade Plutonium. This left India massively short on electrical power. India with lots of cash on hand, directed its Energy Department to scour the world for secure oil supplies to make up this shortfall.

One of the items India settled on was the Alberta Tar Sands and purchased a gigantic lease on which to build a new plant. Conditional; there is a pipeline to tide water to export the product to India. Hence the fumbled mismanaged northern pipeline fiasco that could have been done by now.  Since the original opportunity presented itself, much has changed.   In addition Australia, close to India has discovered huge deposits of shale oil.  One draw back for them Water to flood.

Trans-Canada's  gas exports to Eastern Canada have fallen drastically as has the natural gas reserves in Alberta for which we have received nothing for the provincial coffer. They (Trans-Alta) have been trying for more than 3 years to interest industry  into utilizing that line to ship East and for that same time it has been refused because there is no profit in doing so.

Now, in the latest oil theater a Conservative pipeline agreement has been released and construction of the Eastern pipeline is being seriously considered. It is not a done deal; only news speculation at this point.  It's time line takes it past the next election is the key point and I say again; a toss up as to whether it is done or not.

Alberta collects nothing for oil royalty so that is 30% of taxpayer revenue in the pot to help pay for everything. But; that has been the case for years so, where is the new money coming from?  

We are dealing with a Conservative Government and as Ed Stelmach said; "We are Conservatives; not like those other guys". 

Dig deep folks; you are going to pay for an eastern pipeline out of your household budget one way or another!
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