Trudeau Must Show Leadership and Reject anti Pipeline Politics

[Anonymous]

http://business.financialpost.com/news/energy/trudeaus-rebranding-of-canada-offers-sunshine-to-davos-but-its-cold-comfort-for-battered-oilpatch?__lsa=0d86-0bab">http://business.financialpost.com/news/ ... =0d86-0bab">http://business.financialpost.com/news/energy/trudeaus-rebranding-of-canada-offers-sunshine-to-davos-but-its-cold-comfort-for-battered-oilpatch?__lsa=0d86-0bab

In a speech in Davos this week, Prime Minister Justin Trudeau distanced Canada from its natural resource economy (i.e. oil and gas), and instead played up its economic diversity and its technology brainpower as part of his efforts to "rebrand" the country.



"My predecessor wanted you to know Canada for its resources," Trudeau said in his keynote address at the World Economic Forum in the Swiss Alps. "Well I want you to know Canada for its resourcefulness. Our natural resources are substantial and they will always be a basis of the Canadian economy, but Canadians also know ... that growth and prosperity is not just a matter of what lies under our feet, but what lies between our ears."



Trudeau's 'Sunny-Ways' marketing may have amused the Davos elites, but it's cold comfort to the estimated 100,000 people back home who lost their direct and indirect oil and gas jobs over the past year, or their homes and businesses, or their life savings.



For the legions of scientists who work in the energy sector, it's downright insulting.



Trudeau should re-acquaint himself with the never-more-relevant quote by petroleum geologist Wallace E. Pratt that oil "is first found in the minds of men."



Meanwhile, the Prime Minister is showing little resourcefulness of his own.



Rather than doing what's in his power to do to improve market access for oil, which would alleviate the pain felt in Alberta and Saskatchewan from the oil price collapse, Trudeau's solution is to marginalize the energy sector and look elsewhere.



Surprisingly, in private meetings in Davos with Leonardo Di Caprio, Trudeau warned the actor and anti-oil activist from making uninformed statements about the oilsands, as if his continuing disinterest in their collapse is any better.



Calgary Mayor Naheed Nenshi, also in Davos, appropriately disagreed with Trudeau and suggested Canada should be marketed as "resource-plus."



"We are a resource economy. Our biggest export is still energy and I do not see a path where that does not continue to be the case, so clearly we need to do what we can on market access," Nenshi said, noting it was "being discussed in every corner in this place."



"The two most likely pipeline projects are both entirely in Canada – Trans Mountain and Energy East – and Energy East in particular supplies Alberta energy to the rest of Canada," he said. "So, yes, social licence is required within our own country, but we also need to see action from this federal government about what's happening in Canada and I look forward to that happening."



Trudeau's remedy so far has been old government thinking — $1 billion in federal cash for infrastructure projects for Alberta and Saskatchewan.



Next to the oil and gas investment yanked in the past year alone, Trudeau's offering barely makes a dent. A single company, Husky Energy Inc., cut almost that much this week, when it announced it would reduce spending by $800 million in Western Canada this year.

[Anonymous]

Trudeau can start to revive enthusiasm for Canada's battered oil economy by confirming he is still keen to get export pipelines built, ending a paralysis that's gone on for almost a decade.



Lack of market access is half the reason the Canadian energy sector is being hammered so badly in the oil collapse, why investment is being cut so drastically, why investors are staying on the sidelines. A $10 discount on Canada's oil because of transportation constraints hurts a lot more when oil is sub $30 a barrel.



That's also what Trudeau promised in Calgary less a year ago, when he said at the Calgary Petroleum Club: "Getting our resources to market is a priority for Canadians and we know that that economic success depends on us keeping our word on the environment."



But where is the urgency to resolve market access that Trudeau showed for climate change policy, or for accepting Syrian refugees, or to deliver on promises to aboriginal people?



Where is the leadership by Canada's senior statesman in the face of the out-of-control anti-pipeline politics played by premiers like Christy Clark, who keeps demanding her share of rent before allowing bitumen pipelines through British Columbia; or Montreal-area mayors like Denis Coderre, who on Thursday rejected the Energy East project, supposedly because the risks far outweigh the economic benefits, as if the risks of importing oil from abroad are any better.



It took Alberta Wildrose leader Brian Jean to point out the obvious: "You can't dump raw sewage, accept foreign tankers, benefit from equalization and then reject our pipelines," Jean said on Twitter.



Meanwhile, Trudeau keeps encouraging pipeline opposition by banning oil tankers from the Northern B.C. coast, is insisting on 'modernizing' the perfectly competent National Energy Board even if that means more pipeline delays, and is offering sunshine while Canada's energy economy is sinking.

[Anonymous]

I was watching Andre Coyne talk about the Montreal mayors rejecting Energy East before the NEB hearings are even held. The issue of no international market access for our number one export is holding this country back. What kind of a country do we have when every regional politician is allowed to put personal selfish interest ahead of the national good. This is why this issue should be left taken right out of the hands of politicians entirely and placed in the hands of an independent body like the National Energy Board.

[J0E]

I think the price of oil is being pushed down and depressed by America and its allies blowing up the Middle East.

The true price of oil per barrel is much higher than the current $30 its trading at. Heck the labor, transportation, etc which goes into extracting it alone must be $30.

If it weren't for that military interevention, oil would be sky high by now & the folks in Fort McMurray and Saskatchewan would be doin' just fine.



That's the who purpose of going to war against ISIS, to keep the price of oil down.

Otherwise the American Economy can't hum.

[cc]

Dumb  statements, always springing from your obsessive anti-US hate, are too easy.



Now for the hard part, the being a real man part.



1. Explain in detail (with good sources) HOW this depresses oil prices



2. While you are at it, please explain HOW current minimal bombing of ISIS targets depresses oil prices



If you feel I'm holding your feet to the fire, relax. It's  only because I'm holding your feet to the fire

[Anonymous]

I was watching Andre Coyne talk about the Montreal mayors rejecting Energy East before the NEB hearings are even held. The issue of no international market access for our number one export is holding this country back. What kind of a country do we have when every regional politician is allowed to put personal selfish interest ahead of the national good. This is why this issue should be left taken right out of the hands of politicians entirely and placed in the hands of an independent body like the National Energy Board.

We used to send crude East via pipeline until the 1970's. Funny, Montreal area mayors don't have an issue with tankers of Nigerian heavy going up and down the St. Lawrence. Energy East would create 14, 000 jobs in the construction phase alone. It would generate tens of billions in revenue and make True Dope's infrastructure plan look like building a kiddie park in a subdivision.  We got to stop letting OPEC and American money brainwash us into believing we cannot do it right.

[Romero]

Lack of market access is half the reason the Canadian energy sector is being hammered so badly in the oil collapse, why investment is being cut so drastically, why investors are staying on the sidelines.

The reason for the oil collapse is there's too much oil in the market. Exporting more oil isn't going to raise the price of it.



All the oil producing nations are hurting because of the low price. New pipelines wouldn't help them either. Only scaling back production will raise the price again. Thanks, Saudi Arabia!

Russians' Anxiety Swells as Oil Prices Collapse



http://www.nytimes.com/2016/01/23/world/europe/russians-anxiety-swells-as-oil-prices-collapse.html?_r=0">//http://www.nytimes.com/2016/01/23/world/europe/russians-anxiety-swells-as-oil-prices-collapse.html?_r=0

Oil's Collapse Hurting US States That Were Counting on $50-a-Barrel



http://www.bloomberg.com/news/articles/2016-01-22/oil-s-collapse-hurting-states-that-were-counting-on-50-a-barrel">//http://www.bloomberg.com/news/articles/2016-01-22/oil-s-collapse-hurting-states-that-were-counting-on-50-a-barrel

[Anonymous]

The reason for the oil collapse is because there's too much oil in the market. Exporting more oil isn't going to raise the price of it.



All the oil producing nations are hurting because of the low price. New pipelines wouldn't help them either. Only scaling back production will raise the price again. Thanks, Saudi Arabia!

The reason we can't get a better price is because we don't have access to international markets. The price gap for WCS is widening  in an oversupplied market. The same goes for lighter grades from Alberta and Saskatchewan. This is what happens when one customer dictates what the price you will receive. We need new markets now. A huge shot in the arm for the economy when it is needed most.

[Anonymous]

Here's what access to markets via pipeline for price discounting of oil.

New pipelines to end Midland crude discount in coming months, analyst says

http://fuelfix.com/blog/2014/09/30/new-pipelines-to-end-midland-crude-discount-in-coming-months-analyst-says/">http://fuelfix.com/blog/2014/09/30/new- ... lyst-says/">http://fuelfix.com/blog/2014/09/30/new-pipelines-to-end-midland-crude-discount-in-coming-months-analyst-says/

For fuck sakes, let's get on with twinning Trans Mountain and Energy East. We are one of the few oil producers that will not be ramping down much production. Let's secure contracts offshore and build those pipelines while the economy is very weak. Let's stop the discounting that comes from one customer holding us hostage.

[Romero]

Here's what access to markets means takes away price discounting.

New pipelines to end Midland crude discount in coming months, analyst says

http://fuelfix.com/blog/2014/09/30/new-pipelines-to-end-midland-crude-discount-in-coming-months-analyst-says/">http://fuelfix.com/blog/2014/09/30/new- ... lyst-says/">http://fuelfix.com/blog/2014/09/30/new-pipelines-to-end-midland-crude-discount-in-coming-months-analyst-says/

Thanks for proving my point! That article is from over a year ago. The price of oil is a lot lower now than it was then, isn't it?

[Anonymous]

Here's what access to markets means takes away price discounting.

New pipelines to end Midland crude discount in coming months, analyst says

http://fuelfix.com/blog/2014/09/30/new-pipelines-to-end-midland-crude-discount-in-coming-months-analyst-says/">http://fuelfix.com/blog/2014/09/30/new- ... lyst-says/">http://fuelfix.com/blog/2014/09/30/new-pipelines-to-end-midland-crude-discount-in-coming-months-analyst-says/

Thanks for proving my point! That article is from over a year ago. The price of oil is a lot lower now than it was then, isn't it?

You don't get my point at all. Lack of market access is putting our economy at a competitive disadvantage. There has never been a better time to build a pipeline and get get international access. Let's see True Dope's infrastructure spending compete with Transmountain or Energy East.

[Anonymous]

Gaining access to international markets for our number one export should be the first priority of any national government. There should be declared a national economic emergency, with targets set for pipes in the ground. Obama has streamlined the process South of the border, so there is no reason it cannot be done here.

[Romero]

You don't get my point at all. Lack of market access is putting our economy at a competitive disadvantage. There has never been a better time to build a pipeline and get get international access. Let's see True Dope's infrastructure spending compete with Transmountain or Energy East.

Saudi Arabia and Russia have the most access to international markets by far, yet they're hurting economically too. They're in more trouble than we are!



It's a fact that the countries exporting the most are hurting the most.

[Romero]

Saudis unveil radical austerity program



Saudi Arabia unveiled spending cuts in its 2016 budget, subsidy reforms and a call for privatizations to rein in a yawning deficit caused by the prolonged period of low oil prices.



The Gulf kingdom has kept oil production at high levels in an attempt to force out higher-cost producers, such as shale, and retain its market share. But this year's deficit ballooned to $97.9 billion, or 15 per cent of gross domestic product, as oil revenues fell 23 per cent.



Seeking to ward off future fiscal crises, the ministry of finance confirmed wide-ranging economic reforms, including plans to "privatize a range of sectors and economic activities".



Riyadh would revise energy, water and electricity prices "gradually over the next five years" to optimize efficiency while minimizing "negative effects on low and mid-income citizens and the competitiveness of the business sector," it added.



http://www.cnbc.com/2015/12/29/saudis-unveil-radical-austerity-programme.html">//http://www.cnbc.com/2015/12/29/saudis-unveil-radical-austerity-programme.html

If only Saudi Arabia had access to international markets, eh?

[Anonymous]

You don't get my point at all. Lack of market access is putting our economy at a competitive disadvantage. There has never been a better time to build a pipeline and get get international access. Let's see True Dope's infrastructure spending compete with Transmountain or Energy East.

Saudi Arabia and Russia have the most access to international markets by far, yet they're hurting economically too. They're in more trouble than we are!



It's a fact that the countries exporting the most are hurting the most.

Romero you are missing the entire point. We are paying international prices for imported shit from countries in Central Asia, North Africa and Nigeria while at the same time our crude faces the biggest discounts we ever have faced. And that includes Saskatchewan's crude too. Instead of a tanker moratorium on the North West Coast how about a tanker ban on incoming crude? Let's put Canadians interests first for a change.