Friday, December 26, 2014

BC Dream of getting rich on LNG a nightmare for taxpayers.

Courtesy of  http://oilprice.com/  Probably the single best source of energy information; ahead of time!

Christie against all advise decided on a get rich fast plan buying 3.00 Canadian energy and selling it to Japan for 15.00 per MCF.  Japan asked Obama if they could get in on North American pricing and Obama gave them a firm NO thinking he was protecting market share.

As if Japan would put up with this indefinitely!

Quote from OIL PRICE.
In response to the Ruble’s recent fall (over 50% against the U.S. Dollar), Swiss banks have begun taking extreme and extraordinary measures in what appear to be early signs of a currency war.  There is now a negative interest rate of 0.25% on deposits made in Swiss Francs.  In combination with pre-existing efforts such as Zero Interest Rate policies and quantative easing, we are now entering an era of Negative Interest Rate Policies.  These kinds of policy decisions will do nothing to allay fears about economic slowdown in Europe and Asia and the looming threat of another financial crisis.  Worries about debt-bubbles propping up the US shale scene seem to already be influencing international banking policy, with strategies now revolving around insulating any potential risks should it all turn sour in 2015 for key global currencies.

In addition to the Ruble’s near 50% decline against the dollar, the Japanese Yen is down 20% against the U.S. Dollar since the summer.  This comes as welcome news for struggling Japanese industry as it improves export prices against import prices in favor of Japanese workers.  As part of the Abenomics strategy unveiled over two years ago by the Japanese Prime Minister Shinzo Abe, by flooding the market with Yen he hopes to reinvigorate domestic industry.  Given his re-election this December, his policy seems to be popular if somewhat
unsuccessful thus far.  Off the back of this election victory, the pro-nuclear Liberal Democratic party has greenlit the re-opening of two nuclear reactors in the Takahama project, bringing the current approved number to four with a final total of nine expected to come online in total in 2015.  The restarting of these reactors could prove crucial as Japan struggles with expensive, dollar-linked imports of commodities such as LNG and crude oil.  It will likely have a positive impact on languishing uranium markets should the go-ahead be given for all nine but only time will tell.

Quote Continued:
  The increase in imports comes as part of Saudi Arabia’s shock and awe tactics that are aimed at leveraging more expensive North American shale oil out of the market.  Thus far, it appears that the decision not cut production and thus flood the United States with cheap oil may be working.  

Actually, Saudi Arabia has been in a major turf fight with suppliers of LNG; plants mostly owned by China and the turf war has no end in sight with  the further reduction of LNG prices!

Quote Continued:
Meanwhile, U.S. Natural gas prices dropped by 29% in the last month, owing to milder than expected winter temperatures, and they are expected to remain lower for some time.  This will lead to yet more consumer savings on electricity and heating bills as natural gas accounts for 26% of U.S. electricity generation.  

Consequently Alberta and BC are going arm and arm into Bulk Water Export in a very major way if you let them get away with it!  AS with the rest of their projects, the Conservatives will charge taxpayers and pension funds with the costs and yet unnamed industries will take home the profits after the project, opening in a Government name will be sold off for a buck.

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