Saturday, October 07, 2006

Kline sets the stage for oil company subsidy!

Klein’s last kick at the cat!

Sequence the events:

After pressure from the ‘Net the Conservatives announce they are killing the legislation that gave the oil companies a no tax free ride.

The Auditor General says he is going after the loosey-goosey expenses of the oil companies and the phony classification system of the derived crude which allows oil companies to mark down the value of the product, increasing their profit margin.

Effectively they dictate the price they will pay in royalties.

Jim Dinning announces he has word “oil companies” are planning on refining Alberta crude in the US. Dinning says “Leave it in the ground or refine in Alberta”. Other conservative candidates jump on line with similar plans and voices of outrage.

In order of event, Encana announces they are going to build a multi billion dollar refinery – in Chicago to further refine Alberta Oil. (What comes out of the tar sands is not crude as you know it but a partially refined, very superior product which is under priced at world market price for crude) and why would Encana make this announcement before they had their supply and prices secure?

Encana reports 104% increase in profits

All the Conservative candidates withdraw their positions, a complete turn around!

Ralph Klein says he will have his ministers see if they can make a deal with Encana to build their refinery in Alberta. No leave it in the ground from this guy!

I think the whole thing is a blundered sham! This is a collusion between the oil companies and the Conservatives for the point of hoaxing the Alberta business and public! Klein has found a new way to give the oil companies huge tax breaks or subsidies to offset the losses they are facing because of public pressure.

This is why he was so very cool with the AG notice of the audits.

The only work that remains to be done is to put a proper spin on it so it can be digested by the voters.

An after though: If Alberta held hard to the position of "must refine in Alberta" do you think the US would allow Encana to walk away from the Alberta supply? The answer is No!

John Clark

cyberclark@shaw.ca

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