Wednesday, January 30, 2013

Alberta to the point of no future at all!!

Thank you Conservatives!  Nothing in the Bank; profits all given away down the pipeline and the future looks  bleaker than the depression!

You may be aware that Australia's traditionally frequented trading partners are China and India both showing   a great interest in starting up plants in Alberta.   They want a pipeline to the west coast before they move on it.

The Conservatives have been stalling for years pending a way to get already overtaxes Albertans to pay for the pipelines and infrastructure.   Kinder Morgan offered to expand their pipelines to the West Coast to handle an additional 700 million barrels per day but, upped the prices knowing Alberta would not commit to a different pipeline.

As if crude oil price discounts weren’t bad enough, word is that Australia’s Linc Energy may have found a huge shale oil deposit in the country’s central region.

While Linc Energy’s chief executive Peter Bond tried to temper the buzz the discovery created, the deposit may contain 233 billion barrels of shale oil.

If that number proves to be correct, it would outnumber the 169 billion barrels of oil sands reserves Alberta has and vault Australia past the province in the global petroleum pecking order.

Australia is one of Canada’s chief competitors in the race to supply liquefied natural gas to Pacific Rim markets. But no one thought the Aussies might also pose a threat to Canada’s plans to sell its bitumen to the likes of China and Japan

 Under this Government there will be no market for Alberta oil.  They are not capable of breaking away from the Conservative policy that says nothing can be done unless taxpayers pay for it; that oil belongs to the oil companies and Alberta is entitled only to income taxes and land sales!

We need an election right away!

Sunday, January 27, 2013

Redford's Fireside (Not!)

Key points and misconceptions.

Firstly; Remember Klein on his fireside saying read his lips; they are not going to privatize health care!  Some things never change. 

In excess of 70 Billions of dollars have been sucked from the Heritage Trust Fund!

She said they would start adding money to the Heritage Trust fund which hasn't been added to in 25 years.
 Truth is:  For 25 years this Government has frozen the investment profits of the Heritage Savings and Trust fund at  5%.  Everything above was pulled out and sent to General Revenues where it was used to reduce taxes for the Oil Concerns chiefly and small business, just a bit.  Individuals got next to nothing.  In this period of time there was a long inflation stretch where profits should have been in the 25% range..

This makes Albertans the highest taxed state in North America if not the world!

For all intents and purpose the Heritage Trust was robbed and the money sent down pipelines to the US parent companies. It  wouldn't have been any faster as a bank transfer!

This is another gross misconception; as close to a blatant, outright lie as one is going to get.  It is a far greater transgression than a spin doctor campaign.

The oil is extracted from the Bitumen along with High and Low vapor bases used in blending gasoline's and diesel fuels.   The resulting mix is a low volatile oil; cleaner than anything you will pull from the ground by conventional means.

The WTI; The Brent; The West Texas Crude are designations in markets that indicate impurities, not API or the Weight of the mix  Sulphur  is the key indexer.   Tar Sands crude is Sulphur  free!  It should be priced with the highest  priced market out there! 

In order  to get enough vapor base into the Tar Sands Crude, pristine sulphur free natural gas is added to the mix to bring it to the proper market desired vapor pressure to blend diesels and various gasoline.

Not only is it oil, but it is oil that has been tailored to the refineries it is going to!

You may recall a couple years  ago Natural Gas wells North of High Level were shut in by the Government .  This gas was needed for the blend.  There was never any news of the compensation given to the oil companies who owned the wells.  You can however bet it was the taxpayers who paid the price for it.

In addition, the refineries in the US only have to heat the oil a bit to get their blends.  This gives the US a low carbon foot print and Alberta wears the roses for the dirty part of the equation.

She has said we are loosing 6 billion dollars short this year in oil revenues.   Lets be more specific  here.  This is not  royalty; they are zilch.  It is the taxes off the various plants and shipping facilities.  And, according to the Conservatives (It doesn't  matter who is the leader) taxes is all we are entitled to as Albert ans.

She alluded to getting more for the oil at some nebulous time in the future.  It is time to speak of patterns here.  Stelmach popped out  PDF showing impossible royalty rates going into the future.  This was on the Eve of an election and no time to debate it.   At the bottom of the page was 6 pt print saying all revenues are taken in Canadian dollars.  That one line meant that we took an 18% cut in royalty at that point in time!

I can hardly wait for the lies that will come out  the next election.

It is very worthwhile to note that the Wild Rose Party has criticized Redford saying there is no reason to change our take on Royalty or change the markets on oil.

Three links that remain very important!

Wednesday, January 02, 2013

Province in Rotten shape - Conservative smiles.

Alberta’s Conservatives’ short sited, bordering ignorant administration is leaving Alberta somewhere between the outhouse and the woodshed holding a candle for light!  We are so totally screwed.

We have no money to fall back on; all royalty and profits from the petroleum industry has been shipped off to the oil companies; the heritage Trust fund has been plundered for over 70 billions of dollars belonging to you, your children and their children.  Never to be seen again!  We have the highest cost of living in North America.
Our conventional oil is beyond peak.  This province has absolutely nothing to show for it!  The production will be down to half within 5 years unless the industry can use carbon/water injection combined to recover a great deal more oil out of the formation.  This is old technology tried and true.  
All the carbon capture programs are directed at collecting carbon dioxide for this purpose an and this alone!  The only art is how to invent stories to get the taxpayer to give up their gold to pay for everything leaving oil to the discounted markets.  In reality, it is your savings that are going down the pipeline!  Down the tubes!  They say there is some high number of millions “set aside” for developing  a technology that is 50 years old!   Considering they have no reserves of any kind and are into milking pensions, and bilking the Heritage Fund setting anything aside is an outright lie.  Think here of the nonexistent sustainability fund. No such thing on the books until they tapped into pension funds.
I won’t even touch AIMCO here and the 7 billion absconded from municipal pensions.  It is peanuts when compared to the trillion missing from treasury because of their policy or outright collusion with the oil industry to rip the province off.
Our major market, the US has matured.  The market place has changed  and not very fast and the Conservatives in all their glory have ignored it until it is too late their energies being spent on how to get the taxpayers to pay for all the infrastructure required to meet new, emerging markets
And, they were not surprised by anything in the market place. Quite the contrary they planned to be exactly where we are now.  They are solidly connected to the US Republican Party and meet regularly  It appears they have agreed to milk Alberta dry on the cheapest oil in the world before they tap into their own reserves.  
In the first part of April in 2009 the Forbes Brother was a guest to an oil talk show.  Forbes didn't blink an eye and said “More than all the middle east put together”
The US Geological Service issued a report in April 2008.  It was a revision of a 1995 report on how much oil was in the Western 2/3 of North Dakota, Western South Dakota and extreme Eastern Montana.
The numbers are astounding. They concluded the Bakken is the largest domestic oil discovery since Prudhoe Bay and has the potential to eliminate all American dependence on foreign oil!
The EIA (US Energy Information Administration) puts their estimate at 503 billion barrels!  Even if just 10% of that oil is recoverable at 100.00 per barrel, that 10% is worth 5.3 trillion dollars to the US!  They also estimate because it is light, sweet crude it will cost Americans only 16 dollars per barrel to produce it.
“This sizable find is now the highest-producing onshore oil field found in the past 56 Years” reports the Pittsburgh Post Gazette.   It is known as the Willison Basin but more commonly referred to as the Bakken.
The Stansberry Report Online 4/20/2006
Hidden 1,000 feet beneath the surface of the rocky Mountains lies the largest untapped oil reserve in the world!  It is more than 2 trillion barrels. On August 8,2005 President Bush mandated its extraction.  In 3 ½ years of high oil prices none has been extracted.
The market for natural gas is also come and gone and you have nothing to show for it because you were stuck on Conservatives!
In 2008 Texas reported a new find; more than 75 Trillion Cubic Feet shallow, easy to produce.  There is less than 50 TCF in the Western Canadian Sedimentary basin.
In the high years, gas was a 15.00 a Gj. It is presently about 3.25 and I predict will be below 1.50 this summer.  Oil companies are saying they can make money if the prices are up to 3.40 (and they do not have to pay for any of the infrastructure to transport it)
Alberta, BC and Saskatchewan need  a pipeline to the west coast to meet Asian markets.  Without this access we will fail as provinces.  Whether it is oil or LNG or both, the taxpayers are going to be the ones who pay for the lines, not the oil industry.
The Conservatives are joined at the hip with the US Republicans  and oil and the Republicans are running the show in Canada even though they were rejected soundly by the American people.
Get rid of these guys  You simply cannot afford to vote for them any longer. 

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