Saturday, May 16, 2015
Just how free is oilès free ride in Alberta
Oil has had a free ride in Alberta for the past 30 years. Notley was hired by the electorate to fix that! Albertan are paying the oil industry to take the resource from the province; it is not even a break even deal.
Our last royalty was 16% taken in Canadian funds on a US priced product. This lowly royalty was taken from us during Ron Liepert’s rule and amongst great fanfare the Conservatives celebrated a 15% carbon tax placed on the oil sands. Where did the other 15% go to-
We now collect zero as royalty revenue. Ron Liepert also said Albertans have to get away from their feeling of entitlement; tighten up your belts!
We pay for their transmission lines built specifically for them to export their electricity to the US! You may recall Syncrude getting caught up in a major lawsuit with California for overcharging them on electricity (transmission via BC). Montana already has the receiving lines in place in Alberta to accept the new DC current from Alberta.
This is a trick is in the jurisdiction. If Alberta crosses a border with a power line, the Fed has a say in the pricing of the electricity. So, Montana crosses into Canada avoiding this.
Another trick on the lines. DC power lines are larger in diameter than the AC lines. This is because DC travels on the outside of the line building no resistance (reactance itès called in power transmission) This means the DC can be finitely controlled; no waste generation. Producers expect a 30% increase in profit DC over AC.
And, both AC and DC can be moved in the same lines simultaneously should the need be required.
We pay for oils roads, their water! As I said on the onset, we are actually paying them to take the resource from the province.