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!

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