Showing posts with label Suncor. Show all posts
Showing posts with label Suncor. Show all posts

Thursday, November 01, 2007

Flaherty Saves Oil Patch


See the sky is not falling. Instead the boys in the Petro Towers in Calgary are hearing the sounds of pennies from heaven falling into their laps.

Oilsands stocks rallied yesterday on a US$4.15 jump in crude prices and optimism that Ottawa's surprise corporate tax cut could rescue producers from Alberta's oil and gas royalty increases.

Oilsands companies with long-term oilsands plans will be among the biggest beneficiaries of corporate tax changes proposed by Jim Flaherty, the Federal Finance Minister, on Tuesday, Andrew Potter, oil-and-gas analyst at UBS Securities Canada Inc., said in a research note.

The three most influential movers on the TSX were oilsands companies. EnCana Inc. jumped $2.96 to close at $66.10, Canadian Natural Resources Ltd. rose $3.46 to close at $78.56, and Suncor Energy Inc. was up $3.79 to close at $103.45. Crude prices jumped as high as US$94.74 a barrel, a record price when not adjusting for inflation, on a report showing that inventories in the United States are at a two-year low. Crude for December delivery closed at US$94.53, up US$4.15.

As the old adage goes what the government taketh away the government gives to them that has.

Personal income taxes are being positively impacted in two ways -- by cutting the lowest rate by a half-percentage point, and by raising the "basic personal amount" that someone can earn without paying any tax.

The two measures together will produce an average saving of about $275 a year for most working Canadians.

Better than nothing, but still less that the price of a Tim's coffee per day.

BIG BUSINESS WINS

Big corporations, on the other hand, are in for significant tax reductions over the next five years as the federal rate drops to 15% from more than 22% today.

By 2012, the total cost to the treasury of giving corporations such a break is expected to be just over $14 billion, or almost 50% more than all of Flaherty's tax cuts for individual Canadian taxpayers over the very same period of time.


SEE:

Tax Cuts For The Rich Burden You and Me

Tax Fairness For The Rich


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Monday, October 29, 2007

Stelmach's Royalty Give Away


As I said here Stelmach's Royalty announcement is a sell out.

Alberta's bid to wring more cash from the oil sands with a controversial royalty hike wound up as little more than "smoke and mirrors", one of the province's advisers said on Monday, as it backed away from key elements of a review panel's recommendations.

Pedro van Meurs, who has consulted on royalty regimes in 70 jurisdictions, said the Alberta government left cash on the table when it announced a new royalty scheme last week.

But van Meurs said the changes are at best a minor increase and the province's has lost a once-in-a-generation chance to get what he considers a fair share of the burgeoning sector's revenues.

"It's pretty disastrous," van Meurs told Reuters. "Instead of having a simple tax, what we are now going to see is very complicated system that is more smoke and mirrors than reality."

Van Meurs was a consultant for the review panel that recommended higher rates and a per-barrel tax on oil sands production.

"It's absolutely a minor increase," he said. "The most idiotic thing is that Alberta already had 25 percent."


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The Sky Is Not Falling


After all the sturm and drang, the wailing and whining, the threats, doom-saying and warnings, from Big Oil the sky did not fall down on Friday after Alberta CEO Ed Stelmach announced his royalty compromise. Ok everyone take a Valium. Capitalism remains alive and well in the oil patch. In fact it is still booming.
Energy sector stable amid royalties hike
Market reacts calmly to royalty rules

Citigroup Investment Research energy analyst Doug Leggate has crunched the numbers, and he just doesn't see what all the fuss is about in the Alberta oil sands over the province's new royalty plans.

The negative after-market reaction to Alberta’s proposed royalty changes for the energy sector appears overdone and may present an opportunity to buy some names in the sector, says Citigroup analyst Doug Leggate.

He recommends keeping an eye on preferred names in the sector like Suncor Energy Inc. (SU/TSX) and Canadian Natural Resources Ltd. (CNQ/TSX), but admits there will likely be a strong response to any change from the industry.

“...Versus the level of oil prices we estimate are currently being discounted in the major Canadian oil sands players, the impact on valuations looks benign,” Mr. Leggate wrote.

So while he acknowledged that the new regime gives away some upside, the analyst thinks plenty of core value remains with investors.


Friday's market response to Stelmach's decision was less dramatic than some experts expected. Shares in Suncor (TSX:SU) opened down 3.4 per cent, while shares in Petro-Canada (TSX:PCA) and Imperial Oil (TSX:IMO)were down less than one per cent.

Petro-Canada's Mr. Brenneman told his conference call that the royalty decision won't delay his company's plans to continue its work at Fort Hills, its 60-per-cent-owned oil sands mine and upgrader project north of Fort McMurray. "We intend to progress this through to the sanction point," he said. He indicated that Petrocan should reach the point where it is ready to make a final decision on whether to proceed with the project in about 12 months.

Petro-Canada's third-quarter profit climbed 14 per cent as oil and gas output surged by nearly a third, the country's No. 4 oil producer and refiner said Thursday.

The company extracts 20 per cent of its cash flow from oil and gas operations in Alberta, and is currently planning the $26-billion Fort Hills oilsands development there.

In the quarter, Petro-Canada earned $776 million, or $1.59 a share, up from year-earlier $678 million, or $1.36. Including one-time gains and charges, earnings from continuing operations rose to $630 million, or $1.29 a share, from $564 million, or $1.13 a share.

And if there are market swings they are the result of other factors than the royalty compromise, ironically because of the emissions caps; the Alberta Green Tax as well as labour costs in Alberta's overheated economy.

The downside is that this method of assessing royalties encourages more inflation in this already red-hot economy. There's little incentive to keep costs down on oilsands plants when you have a royalty holiday until construction costs are paid off. The higher the construction costs, the longer the royalty holiday. (After costs are paid off, royalties jump to 25 per cent, rising to 40 per cent when oil reaches $120 a barrel, under Stelmach's proposals.) Yet, it's precisely those rapidly rising costs in construction and labour that are being felt in all sectors of the provincial economy. As Fort McMurray Mayor Melissa Blake says, "we used to call that the Fort McMurray factor -- 30- to 40-per- cent higher price. Now it's all over the province." At this rate of economic growth, her city of 65,000 will have a population of 100,000 in another five years, Blake said in an interview. Good grief.


Suncor has also had to do mechanical upgrades this year and is looking at costs involved in upgrading its refining processes. All part of the day to day cost of doing business. However it's share prices rose despite the minor drop in third quarter earnings.

Suncor cuts targets as profit drops on oilsands output

Suncor cut its oilsands production target for the year and raised cost estimates because of shutdowns and limits on emissions. Alberta regulators capped production from Suncor's Firebag deposit at 42,000 barrels of bitumen a day until it can reduce emissions, the company said. Bitumen is a heavy crude extracted from the tar sands.

Suncor's shares rose $1.46, or 1.4 per cent, to $102.75 on the Toronto Stock Exchange. The stock has gained 12 per cent this year.
Suncor earnings slip as emission caps take toll

Suncor Energy Inc. said Thursday its third-quarter profit fell due to a drop in oilsands sales volumes, and it lowered its production outlook for this year because of maintenance at its oilsands operations near Fort McMurray.

Suncor cut its oilsands production target for the year and raised cost estimates because of shutdowns and limits on emissions. Alberta regulators capped production from Suncor's Firebag deposit at 42,000 barrels of bitumen a day until it can reduce emissions, the company said. Bitumen is a heavy crude extracted from the oilsands.

"We're taking a number of steps to address regulator concerns including accelerating the construction of emission abatement equipment," CEO Richard George said in the statement. "At the same time, we're also examining ways to increase bitumen supply from our mining operations to help offset supply restraints at Firebag."


Suncor eyes US for major oil facilities

Mr. George, the company's longtime executive, said Suncor is working towards charting growth beyond Voyageur and Suncor will most likely seek opportunities that do not stretch far from its core oilsands business.

"We're sitting on huge reserves, some of which haven't even been described publicly, and I still think the core and heart of this (company) is going to be the oilsands," he said, adding that tie-ins or joint-ventures between Suncor and companies in the Fort McMurray area looking for upgrading capacity for raw bitumen represents one opportunity.

"Just continuing to build upgraders probably isn't (our growth plan) but I don't want to preclude anything. Will you see Suncor exploring in North Africa of West Africa? Probably not."

"We have leased land outside Edmonton and that is a possibility and we will also look farther south as well," he said, adding costs to build upgraders and refineries in Fort McMurray are more than double those on the refining hub along the U.S. Gulf Coast.


And the impact of Flaherty's Income Trust Tax plays as much a role in Syncrude's profit outlook as does the Alberta Green Tax. So in balance the impact of the royalty increase is only one factor in Syncrude's future forecasting of its production output.

Alberta, Oct 26 (Reuters) - The firm with the biggest stake in the Syncrude Canada Ltd. oil sands venture said on Friday it is willing to talk to the Alberta government on changing Syncrude's royalty structure, but issued a reminder that its terms are part of a legal contract.

Canadian Oil Sands Trust (COS_u.TO: Quote, Profile, Research), which has a 37 percent stake in the sprawling oil sands mining and synthetic crude venture, said its terms have helped prompt C$8.5 billion ($8.9 billion) in Syncrude spending over the past five years and create 5,000 jobs.

Its royalty terms and those of rival Suncor Energy Inc (SU.TO: Quote, Profile, Research), do not expire until the end of 2015. Premier Ed Stelmach has said Alberta would negotiate with the two operations to agree a transition to the new royalty framework.

Canadian Oil Sands Trust units were were off 69 Canadian cents, or 2 percent, at C$32.90 on the Toronto Stock Exchange.


Meanwhile the impact of the royalty announcement has not deterred Syncrude from looking for 5000 workers to meet its current needs and those down the pike.

There's plenty of work to be had in the booming Alberta oilsands, but you've got to be serious about working there.

Fort McMurray, Alta.-based Syncrude was one of the employers on hand at Thursday's seventh annual Career and Skilled Trades Learning Experience (CASTLE) job and career fair, a first for the oil giant.

"We're looking all across the country," said Syncrude recruiter Dominic House. "We've gone from Vancouver Island to Newfoundland."

Staff at the Syncrude table had a list of 21 different permanent positions currently in demand at the company, including plant operators, boilermakers, engineers in all disciplines and information technology analysts.

"About the only thing we don't hire are plumbers and carpenters," said House. "That work is contracted out."

Not only is the oil boom in Alberta causing a labour shortage, but Syncrude faces a host of retirements, with an attrition rate of eight to nine per cent, he said.

"We're trying to get up to 5,000 employees," said House, adding the company now employs some 4,600 people.

Exciting as all this might sound, he was finding few takers at the CASTLE event.

"Housing cost is the number one deterrent," said House.

In labour-starved Fort McMurray, he said, "you can work at a Burger King and make $15 an hour.

"But in order to afford the housing, you'd better work a lot of hours," he added. "A person making $15 could not survive alone."

All in all Stelmach's royalty compromise turns out to not to have been as balanced as he claims it leaves Albertans without a real share in the wealth being created by the extraction of our resources, and it does not even begin to pay for the social costs of the expansion of the oilsands. It is in effect too little too late.

Inflation is also eroding people's earning power. That's the observation of none other than this fall's TD Bank report on the Alberta economy.

"While average incomes have been rising, the bulk of the gains have been enjoyed at the high end of the income spectrum," says the report. People earning more than $100,000 are enjoying rising incomes. That includes lots of oilpatch workers, not just head office middle managers.

While low-income earners are most at risk, "perhaps the bigger surprise" is that middle-income earners are also hard pressed to record any gains after inflation, says the bank report.

People earning $60,000 or less have remained static or slipped back in inflation- adjusted dollars, according to the bank report.

This is also the province with the regressive flat income tax, which means high-income earners pay the same ten per cent as low-income earners. So the tax system does nothing to mitigate a growing income gap.

So Martha and Henry might have a few questions for Stelmach about a royalty regime that keeps the accelerator to the floor.

They might also note that the dire predictions that investors would dump their energy stocks and flee Alberta didn't happen. On the Toronto exchange Friday, the energy sector was up 0.17.

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Friday, March 16, 2007

The Language Of Racism


Gee I guess it misses something in the translation. Say it in Quebecois and it isn't racist. It is only racist if you say it in English.

Mr. Boisclair was speaking French to a classroom of university students when he referred to "yeux bridés," which translates as slanted or slanting eyes. He suggested yesterday the term might have a more negative connotation in English than in French.

"I'm doing politics, not linguistics," he said, adding that he believes "Quebeckers are 100 per cent behind me" on the issue. Even Mr. Boisclair's rivals said they think he did not intend any malice.

"He might have used a better choice of words, but I know Mr. Boisclair enough to know his intention was not to be disrespectful," Liberal Leader Jean Charest said.

This is the height of unilinqual absurdity. But while the Quebecois Nation and its Nationalists, those Pure Laine unilinqual French speakers who proudly celebrate their colonial past as the French Imperialists in North America, but bemoan their later status as servants in their own house, try and cover up the fact that both Nations, those of the British and the French Imperialists are inherently racist.

This is the contradiction of Quebec Nationalism, as it is of English Canadian Nationalism. Of any Nationalism, period. This is not merely a matter of linguistics. It is a reflection of Imperialism. Canada being formed by two colonial powers, England and France, whose international battles for continental and global superiority over each other in the 18th and 19th Centuries shaped our country's political landscape.

The Quebecois of the old Pure Laine families despite their later poverty, remain a colonial petit-bourgeois ideological force. They were the founding families, the mercantilist and land owning classes. Today they are the farmers in Quebec, they live in the rural ridings of the townships and they gave their support to the Duplesis regime and later to the Creditistes, the Social Credit Party of Quebec. Just as their rural right wing counterparts in English Canada did with their support for the Social Credit party in Alberta and Federally across Canada.

The later slogan of the Quiet Revolution, Masters in Our Own House, belies this inherent old colonial French thinking. While touted by the left in Quebec as being progressive, it is not. It is a sop to the reactionary thinking of nationalism of pre-confederation, of the days before the battle of the plains of Abraham. The Quebecois of the townships today are the reactionary nationalists, who support the PQ, BQ and the ADQ as well as the Charest Liberals to a lesser degree.

In another article I will deal with the so called social democratic and left wing of nationalist politics in Quebec and why they have been a failure as a socialist movement.

Boisclair's racist comments, his refusal to apologize, bespeaks the reactionary nationalism of the colonialist mentality of the petit-bourgeoisie of Quebec. It was clear in statements made by PQ leader Jacques Parizeau, after the 1995 referendum, where he blamed Anglophone,immigrant and Jewish Quebecers for the loss of the vote.

Boisclair's comments must be seen in this light. That nationalism in Quebec is like ruling class nationalism everywhere, it is based on a distinct linguistic or ethnic national identity. Despite not being Masters In Their Own House, once they became masters they became the oppressors. This can be seen with Bill 101, and the underlying politics of nationalism in Quebec.

There is the Quebecois, the national petit-bourgoise that dates itself back to the colonial period of Canada's history, and then there are Quebecers. The latter being the English and immigrants who are not Pure Laine. They are bilingual, if not multilingual, the Pure Laine Quebecois has one language, one heritage, and is one people; the French Speaking.

This is what underlined Harpers stunning about face last fall when he recognized this fact. His Transportation Minister Lawrence Cannon, a Pure Laine Quebecois, though bilingual, said as much. The recognition of the Quebecois, as a nation as a people, was not a recognition of the diversity of Quebec in its modern form, but of the real ruling class in Quebec, the petit-bourgeoisie whose roots are in New France.

In English Canada the counterparts to the Pure Laine Quebecois are the old school nationalists, the reactionaries of the right. Like those who in the 1930's supported the KKK in Alberta; the Orange Lodge of Protestants, and from the ranks of some of those in Freemasonry. They were more concerned with French Catholic influence in 'English' Canada then they were about blacks, jews, or other immigrants (though these too were part of their opposition to immigration of Non-English, that is non-British from the Grand Old Empire, to Canada).

In the 1960's and through out the following decades the defended the old Ensign, with it's union jack, against the New Canadian Flag. They viewed the Liberals as the party of infamy, being the party of Quebec and of immigrants. Theirs was the good old party of the Conservatives, Arthur Meighen's party, not the later Progressive Conservative party of Diefenbaker, that is not an English name is it?

During the 1970's the racist reactionary right embraced the less offensive language of promoting Anglo Saxon Values. They hid their anti-Bilingualism and their anti-immigrant racism, indeed even their antisemitism, behind their supposed support for all things English in Canada. The old Ensign, the term 'Dominion of Canada', the monarchy, the fact Canada was one country under the Queen and had one official language; English, and one religion Christianity.

They attacked bilingualism and bi-culturalism, and Trudeau, as a conspiracy to change Canada into something un-British. When Ukrainian Canadians in the Liberal party pushed for a broader definition of Canada as being multicultural, they opposed that as well. Again for being an attack on Anglo Saxon, British Canada.

Later in the 1980's they added another term to their definition of themselves as an oppressed minority defending the old Empire values; Celtic-Anglo-Saxons. All this was a clever cover for the fact they were the same old racists, anti-immigrants, anti-Semites and anti-Quebec.

What they hold in common, these modern reactionaries of the Pure Laine in Quebec and those supporting the Dominion of Canada,is they base their politics on the old days of Upper and Lower Canada. Key to this is their common wish to be pure, to be unilingual. To be members of the old Imperial Empires, be they British or French.

These movements are inherently reactionary and conservative, in a Burkean fashion.

Modern Canadian Nationalism arose in the 1960's as did its counterpart in Quebec. Both were ostensibly left wing and social democratic. Where the Quebecois saw English colonial power as the enemy, Canadian nationalists saw American Imperialism as the enemy, since the English Imperial power collapsed after WWII, replaced by the new American Century.

And while both the Quebec Nationalists and their Canadian counterparts were predominately progressive and left wing through out the sixties and seventies, the old right wing nationalists were still powerful social forces, especially in the rural West and in the Quebec Townships.

What these reactionaries shared in common was a hatred of all things that were bi-lingual or multi-cultural. By their conservative nature they opposed all forms of modernization, of plurality, they wanted to retain their unique historical unilingual cultures.

There is an undercurrent of unilinqualism being promoted by the Conservative Federal Government in Ottawa today. And it is growing across Canada. English to be spoken in the ROC and French to be spoken in Quebec. A return of the two Solitudes.

The BQ in parliament speak in unilinqual Quebecois, several of Harpers ministers speak unilinqual Quebecois, just as many of his MP's are unilingual English speakers. Several of his cabinet ministers make a point of speaking English only though they are bilingual.

There is a transformation going on in Canada, that the parliamentary recognition of the Quebecois as a people, a nation, underscores, it is the death of bilingualism and bi-culturalism in the Federal State. This can be seen in the changes occurring in the linguistic programs in the Canadian Military, which the BQ and Liberals have pointed out in the house.


Minister O'Connor outlined the Department of Defence's new Official Languages Transformation Model. “During the last decade, the previous Liberal government never addressed the problems inherent to the previous universal approach to official languages within the Department of Defence. The Official Languages Transformation Model brings a new, more focused approach to bilingualism, which better takes into account the unique and distinct operational structure of the Canadian Forces. For example, senior officers will be held up to a much higher standard than in the past,” explained the Minister. “And the Model is in keeping with Canada's New Government's commitment to strongly defending our linguistic duality.”

“The goal of the Model is to ensure that National Defence personnel are led, trained, and supported in their official language of choice, thus better meeting the Department's legal obligations under the Official Languages Act. This will include requiring senior officers to be bilingual, when they are serving in units or functions designated as bilingual,” the Minister added.

The Conservatives are promoting two Canadian languages, not bilingualism and bi-culturalism, since that is a Liberal bugaboo, a much hated left over of the Trudeau era. The Harper Conservatives roots are in the old Social Credit party of Alberta, both provincial and Federal, the Reform party and its links to the reactionary right wing I spoke of earlier.

The are willing to accept two language groups in Canada, as long as they are unilingual. They have always opposed multiculturalism and bilingualism.

This new unilingualism can be seen in this recent incident in Alberta.

Poor English costs Quebecer his Suncor job

A Quebec ironworker is accusing Suncor of discrimination after he was fired for poor English, but a spokesman for the oil giant says poor communication can be dangerous.

The dismissal prompted a second Quebecer to quit Suncor in protest and has incensed the local ironworkers union, which is demanding Suncor do more to accommodate French-speaking tradesmen.

"They aggressively recruit labourers from China, Mexico and Germany, but won't hire us because our English isn't great," journeyman steelworker Marco Pelletier of Cowansville, Que., told the Sun in a French-language interview.

Iron Workers Local 720 will file a human rights
complaint against Suncor for firing a French speaking iron worker for speaking
poor English. Suncor's decision to terminate a qualified worker because of language is
discrimination based on ancestry and place of origin. Such discrimination is
prohibited under Alberta's Human Rights, Citizenship and Multiculturalism Act.
Carol Rioux, of Gaspesie, Quebec, was fired for failing English-language
orientation tests. He has been an ironworker for 25 years.

While Suncor claims that it is a safety issue, the reality is that they failed to provide instruction or training in both Canadian official languages. Something that is illegal under federal law.

One can find French and English on every cereal box in Canada, but Suncor claims it cannot provide the same for French speaking Canadians. Instead it fired the worker.This new uniligualism is the Asymmetrical Federalism being promoted by the Conservative government in Ottawa.

This unilingual asymmetrical federalism is racist, as Boisclair has shown, it is not the vision of Canada that the great Quebecois politician and classic liberal Louis- Joseph Papineau envisioned back in 1867, when he predicted a pluralistic Canada and Quebec which embraced new immigrants in particular the Chinese, whom he never called;
"yeux bridés".

Very blind are those who speak of the creation of a new nationality, strong and harmonious, on the northern bank of St Laurent and the Great Lakes, and who are unaware of or denounce the major and providential fact that this nationality is already very well formed, great, and growing unceasingly; that it cannot be confined to its current limits; that it has an irresistible force of expansion; that in the future it will be more and more made up of immigrants coming from all the countries of the world, no longer only from Europe, but soon of Asia, of which the overpopulation is five times more numerous and no longer has any other outfall than America; composed, says I, of all races of men, who, with their thousand religious beliefs, large mix of errors and truth, are pushed all by the Providence towards this common rendez-vous that will melt in unity and fraternity all of the human family.

1867 Speech of Louis-Joseph Papineau at the Institut canadien


For related articles see:

Racist ADQ

Whipping Boy

White Multiculturalism

The New Conservative Racism

Shameless

Does Bilingualism Matter?

Should Liberal Leader Be Bilingual

PET Would Not Be Amused

Asymmetrical Federalism

Destroying the Federation

Another Fascist Bites the Dust

A History of Canadian Wealth, 1914.


Historical Memory on the Eve of the Election


Social Credit And Western Canadian Radicalism

The Bankruptcy of Liberal Federalism

Rebel Yell

Social Credit

Western Canadian Populism



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