Monday, February 06, 2012

Pipelines - Who pays!

Pipelines appear to ship product from coast to coast but none are bigger than taxpayer dollars!

In Alberta, the Alberta Conservatives have priced our oil for export into the US at 75% of the market price.  The remaining 25% will go towards the payment of the construction and business of the pipelines.

How much we pay will depend on the price of oil  Since 2007 (This policy has been in since the start up of the Tar Sands) the price has remained below 100.00 per bbl/us.  More recently it has moved periodically above 100.00 per barrel US.

Tar Sands output has ranged very close to 1 million barrels a year over a number of years now.

I arbitrarily take 75.00 as being the average and our payment would be 25%  of that or, 18.75 per barrel US.

That works out to 18,750,000 per year paid towards pipelines by the Alberta Taxpayers. Over 10 years that would be $187,500,000 US.

The pipeline has  been on tap for 20 years and for several of those years the price of oil was above 190.00 per barrel US!  The pipeline has been paid for time and time again, who gets the money and why?

Somehow in the dealings Trans Canada Pipelines get paid for the pipeline. My thought is this would be from the refineries in the US. 

From the Taxpayers of Alberta to the Refineries in the US and Back to Trans Canada. A magnificent laundry system to keep the cost of pipelines away from Albertans.

The pipeline to the West coast will be more expensive than the one running south.The 5.5 billion dollars is a low ball estimate.  It could easily reach 5 times that amount!

In this deal, BC and Saskatchewan are on side with Alberta but no one in these jurisdictions is going to tell their taxpayers how much it is going to cost or, how they are going to pay. 

If you want a decent, honest accounting system, vote Liberal of Alberta with me!

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