Kenny's phony carbon storage program 4 billion dollars worth.

For carbon dioxide to become critical (liquid form) it takes the pressure of 2600 feet below the surface.

Generally putting it downhole means they are using the solvent attributes of this liquid to scarf up oil remains in a formation. When they do this, the carbon dioxide is absorbed into the oil making it more fluid, easier to pump. 

As this new mixture is moved to the surface, the pressure diminishes and carbon dioxide is released.  On the surface, this appears to be boiling oil.   

Weyburn Saskatchewan did this in a big way, importing carbon dioxide from North Dakota to put downhole to get more out of their formation.  Reports of this time describe a venting of gas out of the rig with the sound of a jet engine and it would go for hours before oil showed up.

This has been going on since 2008 and is costing billions!  Clean Energy Resources and Projects (CERP) | Natural Resources Canada (atlas.gc.ca)  

Notley Vis Klein and the Electrical power.

When @Ralph Klein privatized the electricity in this province businesses of all kinds packed their bags and left.  Sunland Biscuits on the Yellowhead Trail closed their doors and moved to Brampton Ontario.  Until this time they were shipping 5 -10 truckloads of cookies to Brampton prior to this singular catastrophe.

The well established fiberglass plant at Nisku lasted a year longer but, they gave up the ghost too and left Alberta.

An Air Conditioning manufacturer in Calgary employing 200 people  closed their doors overnight and moved their plant to Minneapolis where they undertook to manufacture heat exchangers for the tops of buildings.

Now, hungry  for her moment under the Sun, Rachel Notley had declared she is going to do away with coal fired electrical generation!  Unless she plans on going Nuclear and I don't think that is the case it means a doubling of our electrical power bills in a very short period of time.

Now, she has announced she is going to New York to look for new business on the strength of much  higher electricity costs and marginally cleaner air.

90% of the world's electricity is generated by burning coal!  What she is saying is she is prepared to go up against the world in energy pricing and hopes to bring in new business because of it.

There is new technology and emerging technology, the latter still in the labs looking for a province or country to support their research.  It is all about Carbon Capture in an actively burning coal plant; pulling Carbon Dioxide out of the smoke stack.   This is a good time to mention that Alberta is blessed with far more than our fair share of coal much of it not opened yet.

The NDP have elected to pay the billions for the carbon dioxide pipeline started by the Conservatives.  According to Notely again this is because too much money has already been spent on the lines.  Yet, there is not sufficient carbon dioxide to fully utilize the pipeline.  The NDP have hung their hat on the Shell Peace River operation for Carbon Dioxide but that project is for sequestering the gas in the lower reaches of the aquifers and it is a long way from the path of the carbon dioxide pipe she has supported.

This can only go two ways.
The first, she has no intention of doing away with the coal generation; it is all for show on the world stage.  Or; she can invite one of the start up or even mature carbon dioxide collectors to join the fray in Alberta and truly become a world leader even making money on the development.

All in all;  I think she is taking some very bad advice!

PS: An interview in the press yesterday has Notley telling the news guy she would never do any thing to hurt Albertans.  By her standards she will happily kill us with kindness.

Bubble Warnings Ignored!!!

The term "Bitumen Bubble" is the Conservative attempt to hide the fact that all the oil leaving this province is discounted, not just the crude from the tar sands!

The Conservative Government has betrayed the people of this province time and again.  Now its to the forefront.  As outlined in the article they have known for years what was coming and did nothing to mitigate the circumstance!

The picture is even more bleak than the Journal article indicates, the Journal is being very kind to the Government!

The royalty regime pays us nothing until the price of oil hits impossible highs.  It is designed so there will never be a royalty collected!

The Conservatives have elected to discount our oil, not just the tar sands but all oil that goes down the pipelines by 30%.  This is an elected position; not one they were forced into!

CAPP tells us that conventional oil has passed peak its on its way down now output expected to be 50% what it is now within 5 years.

The only way they can get more is through this so called CCS program!  By flushing the strata with a mixture of water and carbon dioxide much more oil can be taken out; huge amounts. Carbon Dioxide goes down one hole and up the next.

This is 40 year old technology used extensively in the US!  Why then, are taxpayers burdened with billion plus for experimental proving of the technology?  This is still another betrayal of the people by this Government!

The point is; your resource is gone and you have not received one cent for it since Lougheed left!

When Klein took office royalty was at 30% when he left office it was a 16% and has been in free fall since then with Ron Liepert telling us the royalty was dropped to 6% and would stay there until it went to zero; predicted in 5 years.

The Revenue this Government talks about is the taxes paid by the oil industry and spin offs in general.  

In the platform of the Conservatives and the Wild Rose Party the oil resource companies own the resource!  Alberta is entitled to taxes and land sales; no more!

http://albertathedetails.blogspot.com/2012/02/alberta-royalty-explained.html

Her speech (not covered here) she tells us she will put emphasis on new business other than oil.

The Alberta Advantage was our electricity!  When it was privatized and put on a market basis the prices jumped forcing all the "other than" business from this province.  

Sunland Biscuits (Yellowhead Trail) was shipping 15 trailer loads of cookies to Bramalea every day.  With the electric price they closed their doors and moved to Bramalea.  Soon we had oil or nothing and the fringe business struggled in a province which has an output of oil second only to Saudi Arabia! (As told us by this same Government on several occasions).

Now they are telling us new power lines are going to increase out utility bills by 20 to 40 dollars per month (times 1.5 million homes) and business rates will go up several hundreds.  

This will effectively wipe out the remaining non oil industry!  

Redford would not have gone to the US unless she knew first hand and definitely the Keystone was a Go!  She is now waiting to take the bows when the deal is inked.

If your business is doing "OK" how much better would it have been had you been playing with a full deck?   Lost your home? Same deal.  Over 40 billion dollars a year of Alberta revenue is shipped down those pipelines faster than bank transfers! 

To make it much worse the petroleum industry is meddling in our politics as if we were a banana republic!

http://albertathedetails.blogspot.com/2012/08/alberta-putting-aside-fear-what-do-we.html

Here is a list of links which details much of the above.

http://albertathedetails.blogspot.ca/2013/01/province-in-rotten-shape-conservative.html

Points out years of advance notice which this government did nothing to mitigate.

http://albertathedetails.blogspot.ca/2013/02/bitumen-vis-crude-oil-difference.html

http://albertathedetails.blogspot.ca/2013/01/alberta-to-point-of-no-future-at-all.html

http://albertathedetails.blogspot.ca/2012/12/alberta-and-bc-plans-to-ship-lng-are.html

http://albertathedetails.blogspot.ca/2012/12/conservatives-playing-same-old-game.html

http://albertathedetails.blogspot.com/2012/08/alberta-losses-billion-due-to.html

Rem Journal Article on Oregon Health:

http://albertathedetails.blogspot.com/2010/12/alberta-conservativs-pushing-us-style.html

Alberta Parks sold:

http://albertathedetails.blogspot.com/2009/08/alberta-history-3-camp-grounds-and.html

Rem Total Summary of PNWER

http://albertathedetails.blogspot.com/2011/03/conservativerepublican-alliance-pnwer.html

and:

Rem: Bubble Graphics.

http://albertathedetails.blogspot.com/2008/06/alberta-carbon-sequestor-program.html

I'll finish of by saying I am very disappointed in the Alberta Liberal Party who are sitting on their hands on this with Mr. Taft's policies firmly in place.  Somehow; we will come up the center doing nothing.  I can assure them if they continue this course I will be all over them like ugly on a dog!

Alberta Bill 24 and Carbon Capture:- The tip of the problem!

Alberta recently introduced Bill 24 saying Alberta Taxpayer would accept Liability for Carbon Capture.

This is the tip of the problem!

Alberta has earmarked 2 billion dollars to this program implying we, the taxpayer would received  at some point 20 billion dollars in royalty from the old oil harvested with the Carbon Dioxide put down hole.

Even more recently the Government has put in a very low royalty rate for this segment of the industry and it is locked in for 5 years!   Under this same program oil companies do not have to produce oil to receive payment from the Alberta Government!  This will be the subject of still another post.

We are now getting 5% Canadian dollars on this "old" oil. There is no chance of us making any money on this at all!  Quite the contrary; what the article is telling us is that the Alberta Taxpayer is on hooks for every cent of the Carbon Capture scheme and, we receive nothing back!

Further: This Government on one part with much fan fair says they are going to accept liability on CCS.

When reading bill 24, I see where they have written in a provision that the Government cannot be sued for anything on CCS.

They have effectively given industry a free hand on what they do and, left us holding the bag for what goes wrong!