Showing posts with label big oil. Show all posts
Showing posts with label big oil. Show all posts

Tuesday, September 16, 2008

Forget Ike It's PetroCan's Fault

P.O. about the 13 cent rise in gasoline prices at the pump last Friday. Don't blame hurricane Ike, rather it was exasperated by the shut down of Petrocan here in Edmonton. The plant has been offline since July!



September 15, 2008

Petro-Canada Refinery Shutdown Causes Shortage

Petro-Canada, Canada's second- largest refiner, said filling stations in Alberta and British Columbia may run out of fuel after the unexpected shutdown of a unit at its Edmonton, Alberta, refinery.

The company is investigating the reason for the closing of the catalytic cracking unit, a gasoline-producing piece of equipment, according to a Bloomberg report. Petro-Canada spokesperson Jon Hamilton said the reduction in gasoline could last several weeks as the company fixes the unit.

"It could be short term, it could be a little longer," Hamilton said. "We're looking at, I'd say, weeks not days, right now."

Gasoline shortages may occur in parts of British Columbia's so-called interior region and Alberta, Petro-Canada said in a statement. The Calgary-based company said it's trying to boost supplies in Canada's western provinces partly by buying fuel from rivals.
Deliveries to some customers and filling stations have been curbed, Hamilton said without providing details.

"The deliveries that we're sending out are reduced from what they would normally get,'' he said. "That might mean a smaller load or that might mean less frequent loads."

The company intends to import more supplies to its port terminal in Vancouver and truck the fuel to customers, Hamilton said. Petro-Canada also is altering its distribution network across the country to boost supply in western Canada.

The equipment failure is unrelated to a C$2.2 billion ($2.07 billion) modification project nearing completion at the plant. Parts of the refinery were scheduled to be shuttered for about two months starting this month so that the plant can run on crude extracted from Alberta's oil sands.

Output at the refinery was cut last month because of a water-boiler equipment problem. The plant is capable of processing 135,000 barrels a day.

Imperial Oil Ltd. of Calgary is Canada's largest refiner and marketer.
Since Petrocan, Shell and Imperial Oil are the area's main refiners losing Petrocan put pressure on their retail outlets. Of course this should have been predicated. Add to that the shut down of East Coast gasoline due to Ike and you have the perfect storm.



In March, a shut down at Imperial's 187,000-barrel-a-day Strathcona refinery near Edmonton caused gasoline shortages at Esso stations throughout Alberta, Saskatchewan, B.C. and Manitoba.

Around the same time, Shell Canada Ltd. said its Scotford refinery and upgrader near Fort Saskatchewan, Alta., were operating at reduced rates because of unplanned maintenance.

Last year, Ontarians experienced gasoline shortages for several weeks after a fire at Imperial's Nanticoke refinery.

Canada's refining infrastructure is aging, but companies are not keen on investing in new facilities, said Roger McKnight, an energy analyst with Oshawa, Ont.-based consulting firm En-Pro.

Not only would it would take up to 10 years and billions of dollars to build a new refinery, but they would tilt the market against the companies' favour.

"Their refining margins would drop because of excess supply. So there's no incentive at all for them to do that," McKnight said.

Another factor discouraging the industry from spending money on new refineries is uncertainty about government regulations.

"If I was an oil company, I would like to know in 10 years, when I'm going to have this refinery built, what the eventual specs are going to be and what the emission standards are going to be," McKnight said.

As for the solution it is as clear as the nose on Uncle Ed's face, we need more refinery capacity in Alberta and Canada. Of course given the anti regulatory anti-public ownership attitude of Big Oil and its government in Alberta that ain't gonna happen any time soon.


And so we have gasoline shortages on refinery row.

Back in August, it was Petro-Canada. Now, it’s Shell that has run out of gasoline at some of its Alberta stations.

In Medicine Hat, the Shell stations on Dunmore Road and Eighth St. NW have been out of gas since Friday, while the Shell on South Railway had gas as of Monday but wasn’t sure how long its supplies would last. Shell stations on Redcliff Drive SW and Trans-Canada Way were reporting they still have gas.

Jana Masters, spokesperson for Shell Canada, said there are also a couple of stations in Calgary and Edmonton that are running on empty.

“But these are very small numbers compared to our total operations across the province,” she said.

While the Petro-Canada gas shortage in August had to do with a problem at that company’s refinery, Masters said that is not the case at Shell.

“It’s just a temporary challenge keeping up to customer demand,” Masters said.



It is the lack of tertiary refining that causes gasoline shortages in Canada and subsequently
price increases. And wqe won't get more refineries built until there is a national initiative to make it so including a Green Plan.

Call it a Green National Energy Program. If you want to end price gouging lets have a made in Canada Energy Plan that includes increased bitumin processing and tertiary refining capacity.

Of course others have solutions too, like importing more dirty gas from the U.S. but that is all refined in Hurricane Alley, and we know what that means. 13 cent price increases in one day.

Petro-Canada said it’s pulling out all the stops to make sure supplies of gasoline keep flowing.

Company officials said on Petro-Canada’s website that it was able to use trucks to ship approximately 200,000 litres of gasoline per day from its Vancouver storage facility last week, but that volume has now more than quadrupled.

That’s been partially accomplished by hiring truckers from Ontario to move more product, Stevens said.

The company is also trying to find rail cars that could be pressed into service to deliver gasoline to destinations in B.C. and Alberta.

The company also is trying to boost its gasoline supplies by looking to its other Canadian refineries and to the United States and overseas, Stevens said.

An industry group that represents independent gasoline retailers is calling for a harmonization of gasoline standards between Canada and the U.S., which would allow for more importation of American products during shortages.

Canadian gasoline has hard caps on sulphur and benzene levels in gasoline, which prevents the importation of the product from the U.S. to ease any shortages, said Dave Collins, a director with the Canadian Independent Petroleum Marketers Association.

"It’s great if you’re a refinery because it blocks competition and helps you keep our prices up," he said in an interview from Halifax.

"But it’s not good for consumers and, at times like this, it’s not good for our operations either because we can’t get any gas," he said.

The federal government’s failure to ease importation restrictions means such shortages will likely happen again, Collins said.

Of course the solution is not unrestricted trade with the U.S. for dirty gas, rather the solution was in hand until the Liberals under Paul Martin sold off the last of Canadians taxpayers shareholdings in Petrocan.There is a solution to price gouging, that is worker and community control of the refineries.


SEE:

It's Time to Take Back Our Oil and Gas

NDP And Workers Control

Nationalize the Oil Industry

The Myth of the NEP

Aren't you sorry you sold your shares

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Friday, February 08, 2008

Why Canada Failed Kyoto

The truth about why the Liberals failure to meet their Kyoto commitments,that the Harpocrites deliberately side step, was revealed last night by Jean Chretien when he spoke at the U of A.

He said his Liberal government of the 1990s had done much to pump up the economy Albertans now enjoy, including helping to push ahead development of the oilsands. "If I had done for Quebec what I had done in Alberta in terms of incentives for the tarsands, I would have won all the seats in Quebec," he joked.

Surprise, surprise development trumped the environment and Kyoto was window dressing. State Capitalism is the source of Alberta's oil wealth, unfortunately it is socialism for the rich. Them that's got gets.

H/T to AlbertaTory



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Monday, January 07, 2008

Still not getting our due


The market wonks and pundits are all a flutter about $100 oil. It hit that price last week in two, count em two, speculative deals amongst hundreds in the commodity markets. The price then dropped to between 97 and 99 dollars. This was declared a decline, with much brow wiping.

However the price of oil before last week was $95 at the end of 2007. Again a fact that seemed to be glossed over in the news about hundred buck oil. It hovered between $72 and $80 for most of last year. Then is shot up at the end of the year. Thanks to speculation not real market conditions of supply and demand. Today it is now in the high nineties.

Oil prices rose at a record rate last year a 60% hike . And they will continue to go up. It is one of the conditions of a Peak Oil marketplace.

Which means that Albertans are still getting short changed on our royalties. Since Stelmach's Royalty regime will not come into effect until 2009 and as an uncensored Alberta Energy Report reveals we have been short changed even under the existing royalty scheme.

Oil prices in 2007 rose 57% and wholesale gasoline prices climbed at a similar rate

Oil prices breached a record $100 a barrel several times last week, as falling inventories, geopolitical tensions, strong demand from developing countries and a weak dollar pushed futures above the psychologically important mark.

David Pumphrey Deputy Director, Energy, Center for Strategic and International Studies

"Fundamentals are still quite strong, and would support oil prices in the $90 to $100 range, but not much higher. The wild card is the financial markets."

Daniel Yergin Chairman of Cambridge Energy Research Associates

"Prices won't hover around $100 unless some bad things happen in oil-producing countries. Last year, oil averaged $72


Oil, gas price forecasts
Raymond James analysts are predicting that crude prices will again exceed Wall Street's consensus in 2008. "The global oil markets must push oil prices high enough to slow global oil demand growth in a supply-constrained market," they said. Accordingly, Raymond James raised its forecast of crude prices to an average $90/bbl in 2008, up from a previous estimate of $80/bbl "to reflect a tightening, supply-constrained oil market." Analysts said, "Additionally, we are raising our 2009 forecast from $85/bbl to $100/bbl due to our belief that additional oil supplies will be even harder to find in 2009 and beyond."

Raymond James analysts noted continued strong growth in domestic gas production—"primarily Barnett shale and Rockies driven"—and increased LNG imports should again push US gas storage levels to record highs in 2008. Therefore, they said, "We believe 2008 gas prices will be even weaker than originally anticipated and are revising our 2008 US gas price forecast down from $7/Mcf to an average of $6.50/Mcf for the full year, the lowest since 2004. We are also initiating a 2009 price forecast of $7/Mcf. While US gas prices could remain relatively weak through 2009, the build-out of global gas infrastructure should eventually drive global gas prices closer to BTU parity (6:1 price ratio) over the next 5 years."


Censored report shows gov't was told in 2006 Alta. missing out on oil billions


EDMONTON - Alberta Energy told the provincial government in 2004 that the province was missing out on billions of dollars in resource revenue, newly released documents show.

In a 2006 report, the department estimated that since royalty rates were capped at certain price levels, Alberta had lost between $1.3 billion and $2.8 billion in "uncaptured economic rent" for natural gas alone in 2003 and 2004, or between $700 million and $1.4 billion a year.

The department's cross-commodity resource valuation team called on the government to "increase conventional oil and gas royalties to restore Alberta's fair share at high prices."

Another section of the report, comparing Alberta with eight U.S. oil-producing states, showed the province ranked lowest in the percentage it took in royalties and taxes.

Premier Ed Stelmach announced last fall that he was hiking royalties, but not until 2009 and not to the extent called for by the royalty review panel headed by Bill Hunter.

In the documents, information about oilpatch returns against reinvestment between 1990 and 2003 show that despite higher returns for companies and record drilling, the ratio of reinvestment has declined. The words "higher returns, record drilling, declining reinvestment" were stricken from documents previously released to The Journal.

Alberta's NDP joined in the fray Friday by attacking Stelmach's new royalty framework as a massive giveaway to oil companies.

"When oil hits $100, this new royalty framework will forgo tens of millions of dollars a day compared to Alaska," NDP Leader Brian Mason said.

"When the time comes that oil regularly trades at $100, the Tory royalty system will cost Albertans over $4 billion a year."


Stelmach's oil royalty plan called inferior to Alaska's

Premier Ed Stelmach's new oil royalty revenue scheme will generate chump change compared to the system used in Alaska, says Alberta NDP leader Brian Mason.

"The two areas face similar challenges in terms of costly operations to extract crude oil and have similar right-leaning governments, yet Alaska has managed to come up with a system that generates far more money from oil than we ever could under the new royalty regime," he said yesterday.

By Mason's math, Albertans are foregoing $4.3 billion in extra oil revenue by not charging higher royalty percentages and capitalizing on $100 per barrel oil prices.

Mason said under the new royalty regime, Alberta will take in $7.4 billion, but that could jump to $11.8 billion if Alberta took a bigger piece of the pie.

"Alaska takes $42.24 on each barrel of $100 oil and the sky didn't fall as Big Oil warned us it would in Alberta just a few months ago.

"Alberta takes just $26.51 from a barrel of $100 oil. There is a huge gap there and a lot of room for us to earn more money. The price of a barrel of oil isn't going down much any time soon. As far as I can tell, the world only has so much of it to go around."

SEE

The Economist On Alberta's Fair Share


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Tuesday, November 13, 2007

Pipelines Are Safer

Then transporting oil by tanker. Three tanker spills in under a week, one in Ukraine, one in San Fransisco Bay and one in Hobart, Australia.

Long stretches of Russia's Black Sea coast face an ecological catastrophe, local authorities said on Monday, after a fierce storm broke up a tanker, disgorging hundreds of tons of oil on to the shore.

Emergency services crews are attending an accident in Hobart where a petrol tanker rolled late this morning. Fire fighters arrived at the scene just before midday to find the tanker leaking some of the 14,000 litres of diesel on board.

About 58,000 gallons of oil has spilled from a South Korea-bound container ship that ran into the San Francisco-Oakland Bay Bridge Wednesday in dense fog.


It's not a popular sentiment I know, but pipelines are safer. Safer than train or truck transport and certainly far safer than ocean tanker transportation.

Oil spill inevitable, islanders hear
Queen Charlotte Islands Observer, Canada - 24 Oct 2007
Both speakers said once a spill happens, it could take several days before response teams reach it. "There are only two tugs.to rescue a disabled tanker, ...


Compare the amount of tanker accidents that have occurred and the ecological damage to the ocean and shore line compared to the one recent pipeline accident.

Table 1: Number of spills over 7 tonnes

Year

7-700 tonnes

>700 tonnes

1970

6

29

1971

18

14

1972

48

27

1973

27

32

1974

89

28

1975

95

22

1976

67

26

1977

68

17

1978

58

23

1979

60

34

1980

52

13

1981

54

7

1982

45

4

1983

52

13

1984

25

8

1985

31

8

1986

27

7

1987

27

10

1988

11

10

1989

32

13

1990

51

14

1991

29

7

1992

31

10

1993

31

11

1994

26

9

1995

20

3

1996

20

3

1997

28

10

1998

25

5

1999

19

6

2000

19

4

2001
16
3
2002
12
3
2003
15
4
2004
16
5
2005
21
3
2006
14
4




While the BP pipeline break was irresponsible, it was a rare event.
Published: October 31, 1984

Workers set up portable dams today to stem flows from two broken pipelines that poured some 1,500 barrels of oil into a wildlife refuge and a lake.

One of the spills came from a line owned by the Mobil Pipeline Company and the other was from a pipeline belonging to Total Petroleum Corporation. A Mobil spokesman said the company believed the spills were under control. Other booms were placed to prevent the oil from spreading farther into Lake Texoma and the Tishomingo Wildlife Refuge near the Oklahoma- Texas border.

State officials said no dead fish or oil- coated birds had been reported.


Compared to the irresponsible use of old out dated sea going tankers that cross the globe. And we only hear about the spills that occur near shore lines.

US navy to stage oil spill exercise at Bahrain port


The BP pipeline accident could have been avoided if the "Green" oil company had actually bothered to maintain its pipeline properly. Which it didn't. But even then the amount of oil spilled pales in comparison to that of oil tankers. And the ecological damage was far easier to contain.

BP fined $20 million for Alaska oil spills

JEANNETTE J. LEE
The Associated Press

ANCHORAGE - BP America will pay $20 million and plead guilty to a misdemeanor violation of the federal Clean Water Act for a crude spill on Alaska's oil-rich North Slope, Justice Department officials said Thursday
The company's long-standing pattern of cost-cutting and mismanagement at Prudhoe Bay, the nation's largest oil field, was a major cause of the 200,000-gallon spill in March 2006, U.S. Attorney Nelson Cohen said in a news conference.

"The company failed to invest enough money, in time and people, to maintain the integrity of the pipeline," Cohen said. The spill was the largest ever in the North Slope fields, which border the Arctic Ocean.

The agreement was one of several struck between the London-based oil and gas giant and federal investigators in the resolution of probes across the U.S.

"These agreements are an admission that, in these instances, our operations failed to meet our own standards and the requirements of the law. For that, we apologize," BP America Chairman and President Bob Malone said in statement.

In Alaska, federal attorneys said the company has admitted its failure to adequately monitor and clean its transit pipelines despite the challenging operating conditions in the Arctic oil fields it co-owns with Exxon Mobil Corp. and ConocoPhillips. BP operates the fields on behalf of all the owners.



When compared to the amount of oil tanker accidents that have occurred pipelines are far safer for transporting oil and natural gas. And San Fransisco home of the latest spill which has huge refining operations is a good example.

"Human error factors" probably were involved in a ship crash and oil spill that killed nearly 400 birds in San Francisco Bay and prompted a federal criminal probe, the U.S. Coast Guard said Monday.

A spill of this nature always seems to conjure up images of the Exxon Valdez, the big tanker that ran aground in Alaska in 1989. ExxonMobil (NYSE: XOM) is involved in litigation concerning that incident to this day.

Spills can occur in a variety of ways. For instance, last year a BP (NYSE: BP)resulting in a spill and a shutdown for repairs.
pipeline serving the Prudhoe Bay field crumbled,

More bizarre was the February 2002 spill 17 miles southwest of the Golden Gate Bridge. That spill was attributed to the SS Jacob Luckenbach, which had sunk 50 years earlier, only to have its fuel begin seeping to the surface after half a century.


Here is a look at major oil spills in or around the San Francisco Bay Area.

— 2007: About 58,000 gallons spill into San Francisco Bay after a ship strikes into a tower on the San Francisco-Oakland Bay Bridge.

— 2004: More than 120,000 gallons spilled in Suisun Marsh from Kinder Morgan pipeline.

— 1996: 40,000 gallons spilled from a military vessel near Pier 70.

— 1988: 400,000 gallons spilled when Shell refinery drain line breaks.

— 1984: 1.5 million gallons spilled just outside the Golden Gate Bridge when an explosion damages a tanker ship.

— 1971: 840,000 gallons spilled when two Standard Oil tankers collided.

— 1937: 2.7 million gallons spilled when an oil tanker collided with a passenger ship




And what are the legal results of these spills? Well not what you think. The laws around clean up are not clear and governments are playing both catch up and catch the culprit. Despite the long history of tanker spills.


A revised rule that forces shipping companies to shoulder the cost of cleaning up pollution from maritime accidents, such as oil spills, in China's waters, is likely to take effect next year, if not sooner, a senior official with China Maritime Safety Administration (MSA) said Wednesday.

If the revised regulation is approved by the State Council, companies such as Sinopec, PetroChina and the China National Offshore Oil Corp (CNOOC) will be required to contribute to a special compensation and clean-up fund, Liu Gongcheng, executive director of China MSA, said.

Figures showed more than 90 percent of China's oil imports - 145 million tons last year - is transported by sea. Some 163,000 tankers of all sizes sailed into and out of China's ports last year, an average of 446 every day.

"The size of oil tankers is also getting bigger, up to 300,000 tons, which has added to the risk," Liu said. "If only 1 percent of the oil is spilled, we will be confronted with a catastrophe."

Oil spills can wreak havoc on sea life, fishing and tourism. They cost millions of yuan to clean up and even more in compensation and damages, he said.

The oil spill from the tanker Prestige, which sank off Spain in November 2002, leaked 77,000 tons of oil that caused several billion dollars worth of damage.

In the past year, there have been several oil spills in domestic seawaters that involved 500 to 600 tons of oil, but didn't cause serious pollution due to emergency response, Liu said.


EU court annuls ship pollution law on technicality

The European Union's top court struck down an EU law holding captains and shipowners criminally responsible for polluting the sea on Tuesday, saying the legislation had not been properly drafted.

The law was agreed in 2005, shortly after oil tanker spills damaged coastlines in France and Spain.

The legislation will now have to rewritten after the Luxembourg-based court said in a statement that national governments had ignored the executive European Commission during the legislative process.

Under the law, captains, owners or companies chartering ships could be prosecuted and fined heavily for major sea pollution.

It was introduced after the tanker Prestige spilled over 60,000 tonnes of oil off northwestern Spain in 2002. In a similar environmental catastrophe, the tanker Erika discharged about 20,000 of oil in 1999 off the French coast.

Puerto Rico Investigators Search for Oil Spill Culprit As Coast Cleanup Ends

Crews have completed a cleanup of an extensive oil spill that fouled rocky shoreline and mangrove thickets along Puerto Rico's southwest coast, but pollution investigators are still searching for the spill's cause.

Roughly 19,000 gallons of contaminated water have been siphoned from the Caribbean Sea since the spill slicked miles of coastline in late August, and 1,000 cubic yards of oily debris have been gathered by cleanup crews clad in protective suits and boots, the U.S. Coast Guard said Monday.

"We will continue to thoroughly investigate this incident and monitor the affected area in case any new recoverable oil is identified that needs to be cleaned up," said Capt. James E. Tunstall, commander of Coast Guard operations in the eastern Caribbean.

Marshland and mangroves in the western section of the town of La Parguera are still surrounded by a floating absorbent boom, but the protective barrier is expected to be removed before the end of the week.

"We're definitely happy they did such a good job cleaning the area up," said Angel Rovira, owner of a dive shop that ferries tourists and locals to a pristine coral reef several miles off the southwest coast of the U.S. Caribbean territory.

The nearly two-month effort to clean more than 30 miles of coastline from Guayanilla Bay to La Parguera cost more than $6 million.

Coast Guard investigators have indicated that New York-based General Maritime Corp., which owns and operates a fleet of crude oil tankers, is the likely source of the spill. A tanker owned by the company, the Genmar Progress, was anchored in the area when drifting bands of oil were first reported.

In late September, U.S. pollution investigators boarded the 1991-built tanker while it was docked in Port Arthur, Texas.

In a Monday phone interview, General Maritime spokesman Darrel Wilson said the company is cooperating fully with authorities, but stressed it has yet to be determined that its ship is definitely to blame.

A whistle-blower's courage and federal prosecutors in Alaska have given Washington state some extra protection against oil spills in local waters

And their actions have resulted in something that didn't happen after a mysterious spill blackened Vashon Island beaches three years ago: criminal accountability for ConocoPhillips, the nation's third-largest oil company.

None of the new requirements is the direct result of the October 2004 spill in Dalco Passage in southern Puget Sound, which was discovered in the middle of the night by a tugboat captain.

But instead, ConocoPhillips got tagged for a much smaller spill, in the middle of the Pacific Ocean in January 2004. After that spill, ship's officers conducted an elaborate cover-up that was caught on videotape.

Two and a half billion dollars isn't a lot of money if you're Exxon Mobil.

That's the amount the oil company may be ordered to pay as punishment for the Valdez oil spill in Alaska 18 years ago. The 11-million-gallon spill soiled 1,200 miles of pristine coastline and, according to some locals, permanently disrupted the fishing business in the area.

A case to make Exxon Mobil pay punitive damages has been snaking through the courts since 1994. Originally, the damages were set at $5 billion, and an appeals court later cut them to $2.5 billion.

Now, the U.S. Supreme Court will decide whether Exxon Mobil has to pay anything at all.

Regardless of how the court rules, the answer is the same: not really.

Even if the Supremes let stand the lower court decision and demand Exxon Mobil pay up immediately, the company would, in effect, pay nothing.

Exxon Mobil could pay most of the judgment from the interest it would have earned on the money during the time the case has been pending.

An Exxon Mobil spokesman said the company believes the punitive damages will be set aside, and therefore it hasn't set aside any money to pay the judgment.

At the end of last year, Exxon Mobil had a cash hoard of $28 billion. So it's not hurting for funds. But what if it had earmarked a $5 billion slice of those reserves to pay the Valdez damages when they were first awarded in 1994, just on the chance it might lose the case?


And then there is the idea of shipping Liquefied Natural Gas (LNG) instead of using a natural gas pipeline.


Safety Concerns Tie Up LNG Development

Fall River, Massachusetts, has long drawn its identity from the water. First it came from the textile trade, and lately it's because of opposition to one of the nation's first land-based liquefied natural gas, or LNG, terminals slated to be built in the coastal enclave of nearly 100,000 people.

Longtime mayor Ed Lambert, who left office on Friday, has led the opposition to an LNG terminal in the city's backyard. Nine thousand people live within one mile of the 73-acre industrial site along the Taunton River where Weaver's Cove Energy, a subsidiary of energy giant Hess, hopes to build the terminal.

"To put them in the middle of an urban neighborhood, simply to enhance the profit margin of the energy industry, is significantly wrong," Lambert told us when we surveyed the proposed plant site earlier this year. Houses begin a block away, many lying on dead end streets with no outlet in the direction away from the site.

"It truly is like needlessly painting a bulls-eye on a working class community," Lambert says.

The fear, in a post-9/11 world, stems from what might happen if an LNG tanker were attacked or even it suffered an accident, such as a collision at sea. According to a Government Accountability Office report issued earlier this year, all but one of 19 experts surveyed believe an LNG spill could "present hazards to the public."

The debate over LNG safety is increasing as clean-burning natural gas now accounts for almost 25 percent of all energy consumed in this country. In the past year, 95% of all new electricity generated in the U.S. came from natural gas, according to the Federal Energy Regulatory Commission, the agency which reviews all LNG proposals and green-lighted

So when folks oppose projects like the Mackenzie Valley pipeline and the Alaska Gas pipeline for 'ecological' reasons let's remember that pipeline breaks are far rarer and their ecological impact has been far less than the alternative; rusty outdated ocean going tankers.

At around 00:45 GMT on 01 December 2003, a rupture in the pipeline occurred at approximately 120 km south of Grande Prairie, Alberta. 14 hours later, another rupture and fire occurred 15 km downstream from the initial incident. According to TransCanada PipeLines, the breaks were immediately isolated, and any already escaped gas was allowed to burn off.

This is not to say that pipeline companies like TransCanada are any less jerks when it comes to the folks whose land they want to build on. They are after all Big Oil.

But for most Green activists the bottom line is that they would prefer the end of all reliance on gas and oil, period. Which of course is not going to happen any time soon since oil and gas fuels capitalism.


The victory of the Entente in the World War was in the last analysis a victory of the superior war technology of America. For the first time oil triumphed over coal for the heating of the submarines and ships, of the aircraft, motors, tanks, etc., was accomplished with oil and by a technology which had undergone especially high development in America and opposite which the German technology was backward. After the ending of the World War, the most pressing imperative for America, if it did not want to lose again the hegemony won over world economic domains, was to bring the oil production of the world into its hands in order to thus monopolise the guarantees of its ascendancy.

From the Bourgeois to the Proletarian Revolution by Otto Ruhle 1924





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Wednesday, November 07, 2007

The Economist On Alberta's Fair Share

The Economist on Ed Stelmach's Royalty sell out. Yep folks his approach may have been balanced for the whiners in Calgary Petro Towers, but when it comes to the market place we are still getting shortchanged.

Nov 6th 2007
From Economist.com

OIL prices seem to hit a new peak each week. This is good news for governments which take a cut of revenues. And coffers will swell further as companies explore new sources of oil that had previously been too pricey to extract, such as oil sands in Alberta, Canada. The province's government recently announced an increase in royalties from 47% to 55% of net revenues in 2010. But this is still a relatively small share compared with many countries. The tax man in Norway, Russia and Libya takes over 70% of revenues.

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Tuesday, November 06, 2007

Mason Forces Royalty Debate

Slick Eddie had hoped his TV show and Royalty announcement would have avoided any discussion of his royalty plan in the fall sitting of the Legislature which kicked off yesterday.

The Stelmach government doesn't want to discuss royalties or homelessness. Rather they want to talk about busting speeders and smokers. The best laid plan of mice and Tired Old Tories.....And it took the NDP to force the debate.

The legislature will try to debate 26 bills during the month-long session, but royalties took centre stage on the opening day despite the fact no legislation is being introduced on that issue.

NDP Forces Emergency Debate On Energy Royalties
Nov, 05 2007 - 4:20 PM

CALGARY/AM770CHQR - The fall sitting of the Alberta Legislature got off to a raucous start Monday afternoon, as oil and gas royalties became a hot topic during question period.
NDP leader Brian Mason was also successful in forcing an emergency debate on the issue, by getting a Standing Order approved.

Premier Ed Stelmach told the legislature he can't see how the province was shortchanged because of the tremendous prosperity Albertans have enjoyed in recent years. But the NDP and Liberals disagree.

"The auditor general said this minister had access to information showing that their royalties could be raised without hurting the industry and he denied it in this house," Mason said. "How can you condone that, Mr. Premier, why don't you do the right thing and fire that minister?"

Knight and Stelmach largely dodged questions about their roles in past royalty reviews, preferring instead to focus on the government's overall performance.

Knight took issue with opposition claims that the province missed out on billions of dollars in royalties. "There are no missing billions. Those dollars remained in the province of Alberta, were invested, were a magnet for additional dollars," Knight said. "The royalty structure in the province of Alberta is a policy set by the government. The policy is not set by reports that are developed both internally and externally and are given to any minister at any point in time."

Funny that's not what the Auditor General or the Royalty Review Committee said. They said Knight and his Department had NOT collected billions in royalties.

Last month, Auditor General Fred Dunn said the Tory government knew at least three years ago that it was losing royalties from energy projects in the province.

He slammed former energy ministers and their staff for identifying, but not collecting, about $1 billion per year in fees owed by oil and gas companies.

In light of those findings, the NDP hounded the Tories Monday over why the current energy minister was unaware of what his predecessors knew about the province's royalties.

"What I'm saying is there is not billions of dollars missing any place," Energy Minister Mel Knight said. "There is no requirement for me to get a briefing from any previous energy minister in respect to the royalty structure."
SEE:

Mason Hits The Bricks


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Sunday, November 04, 2007

Presto Shills For Big Oil

Presto Manning was on CTV Question Period this morning shilling for Big Oil and whining about the Alberta Royalty compromise produced by Eddie Stelmach.

CTV's Question Period: Preston Manning, Fmr. Reform Party leader

Presto was following up on criticisms he made earlier this week in a comment piece he wrote in one of them 'damn eastern newspapers'; the Globe and Mail, aka Canada's National newspaper. Preston Manning: The Stelmach royalty uncertainty principle Which of course is owned by the same folks who own CTV.

Presto has upset folks even on the right like Neil Waugh at the Edmonton Sun.
Whose side is Presto on?

Presto engaged in some political prestidigitations on Question Period about how this will hurt Eddie in the polls when the election comes. And as usual with the rose coloured glasses of the Calgary right wing he predicted that it won't benefit the Liberals or NDP or even the would be right wing rump parties, but rather it would be because conservatives will stay home.

Manning added it's becoming increasingly unlikely that Stelmach and the Conservatives will win another election unless the "government demonstrates a capacity it hasn't shown thus far."

"I don't see votes going to the Liberals or the NDP, I think their biggest danger is another 150,000 people staying home who voted Conservative the last time," he said.



Well at least they have homes. It's not just the royalty deal that is driving a stake in the heart of the Tired Old Tories it's stories like this Halloween surprise.

Drastic rent increases at a Fort McMurray complex are renewing calls for rent control.

"The province needs to step in. Every other province has some form of rent control," said Rob Picard, angered by his skyrocketing rent.

On Halloween night, Picard was spooked by an 86% increase to his rent. The three-month notice means the rent on his two-bedroom 700-square-foot apartment in the River Park Glens, also known as the Syncrude Towers, is jumping from $1,425 per month to $2,650.

"I work for Suncor. I make good money, but I can't afford this. The illusion that this is Fort McMurray and everybody can afford this is just wrong," said the heavy equipment operator.

He's not the only one complaining.

Gunner Antos has a two-bedroom apartment in the same building and will see his rent go from $1,500 a month to $2,700. Those prices could even drive highly paid workers away.

"They're crying for workers and they're raping us," said Antos.

"You've got people who have jobs living in tent cities. They have people with jobs living in the bush."

Service Alberta spokesman Eoin Kenny said the government is not looking at rent controls at this time.

The apartment building has about 500 units, although some are individually owned.

"With this type of hit, even though I work for Syncrude, I may be forced to take a room this late in life," said Gerald Morrison, who has lived at the complex for more than 20 years.

"I always thought Fort McMurray was fair and square, but they're gouging now."

The landlords left a note on apartment doors Wednesday afternoon saying the change will be effective Feb. 1.

Mr. Morrison said his three-bedroom apartment is going from $1,800 a month to $2,950 - without utilities - despite a leaky roof, carpenter ants and unpainted walls. Two years ago, his rent went from $1,100 to $1,500, and then to $1,800 last February.

David Campkin said the one-bedroom apartment he and his wife share rose to $2,250 from $1,450. He said the unit's condition is "absolutely appalling" with a carpetless concrete floor and none of the promised security.

The provincial Residential Tenancies Act passed in April requires landlords to give tenants three months' notice before raising rent once a year. River Park Glen appears to have met the conditions.

There is no ceiling on rent increases in Alberta, where a sizzling economy is attracting workers from outside the province and making affordable housing scarce. A government-appointed committee suggested rent controls to Premier Ed Stelmach earlier this year, but he rejected the recommendation.

Lets do some quick math shall we. 500 units X $1500=$750,000. Rolling in the dough while not providing tenants with repairs. Can you say high rise slum lord.

Another whiner from Alberta is Harpers pal the ex-CEO of Encana, Gwyn Morgan
who also published a comment attacking the royalty compromise in that same eastern rag. The irony is that populism was what got Presto elected and made the Reform/Alliance/Conservative party possible. And Gwyn makes the same case that Presto does in attacking Farmer Ed.

Populism tramples principle in Alberta

GWYN MORGAN

From Monday's Globe and Mail
October 29, 2007 at 6:30 AM EST

Experience has taught me that populist politics are seldom principled. It's not that populists don't want to do what's right and best; it's just that if a choice has to be made as to which has priority, what is popular wins.

The second matter of principle Mr. Stelmach's government has violated is reneging on oil sands royalty commitments under which capital has already been invested. Except in the case of Syncrude and Suncor, the money was invested without a contract binding the government to honour the terms.

Nonetheless, investors rightly see this unilateral change as a clear case of doing what is popular rather than what is right. And in terms of doing what is best, the damage to Alberta's reputation certainly illustrates the wrong choice.

Industry is still in shock, but the computer models used to compare before and after investment feasibility are grinding away. Companies with investment opportunities outside Alberta will be looking at them a lot closer. The natural gas drilling and development service sector was already suffering, so expect an even worse downturn. New project decisions in the oil sands will have to factor a much higher government take into a business already replete with risk.

Mr. Stelmach states: "I'm confident we've made the right decisions for today and for Alberta's future."

As for me, I continue to believe that populist politics are seldom principled.


Populism is what kept Ralph in power for years. Of course in Ralph's case that was populism that benefited the oil boys in Calgary. So that was principled.



SEE:

Income Trusts; Predatory Capitalism

Stelmach's Royalty Give Away

Made In Calgary Homeless Plan

The Sky Is Not Falling



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