BC Provincial Election
#77
Are Asians willing to pay a premium price for oil? Apparently so for LNG, but I am not so sure about oil.
But to turn your other question around. Do I think that if the feds get more money from oil taxes they will increase the transfer payments to BC? No. Make additional investements specifically in BC? No.
We might get a small something as part of a general increase to all provinces, but I don't think that in any way compensates for the risk.
According to Redford we are not. It's Alberta's oil and Alberta is keeping all the revenue from it.
But to turn your other question around. Do I think that if the feds get more money from oil taxes they will increase the transfer payments to BC? No. Make additional investements specifically in BC? No.
We might get a small something as part of a general increase to all provinces, but I don't think that in any way compensates for the risk.
According to Redford we are not. It's Alberta's oil and Alberta is keeping all the revenue from it.
I don't know enough about the economics to be able to comment in an informed fashion but, from what I understand, the resource goes south at the moment and the US pays X for it. If it was able to go to other markets, the producers would obtain X+ for it. The additional price would mean additional revenues for Alberta and additional revenues for Canada.
It would appear that the argument you have made above is that BC should only approve the pipeline if BC benefits from it. While, on one level, I agree, what about the benefit to Canada? I am confident that there are workers employed in Alberta that reside in BC, will spend their money in BC, etc.
As I said, I have no involvement with the oil and gas industry at all, so no dog in this fight. I get the environmental argument; sort of. I accept there is a risk but I genuinely have no idea how big a risk it actually is. I am curious to understand how those in BC (that oppose the pipeline) expect to have access to petrol for their vehicles without incurring any form of risk during transportation. Maybe they believe it simply magically appears at their local station but, if they are not that stupid, what about the risk of transporting it so they can access it?
The money involved with building it, operating it and the port, servicing it.
#78
#79
Since when does "anti-oil" mean "against the northern gateway pipeline" ? Some comments were made in the thread to the effect that oil is a polluting energy source and that the country should focus on renewables instead of oil. As AC pointed out, those who make those charges are often the ones to hop on an aircraft propelled by the very substance they deplore. To me that is hypocritical.
#80
The question is, why does BC need to be compensated for the pollution risk? If the pipeline were to leak, clearly there is a strong case for compensation; indeed the Province could demand guarantees from Canada that any incident is adequately compensated. But to ask for risk compensation in advance is a kind extortion is it not?
#81
Since when does "anti-oil" mean "against the northern gateway pipeline" ? Some comments were made in the thread to the effect that oil is a polluting energy source and that the country should focus on renewables instead of oil. As AC pointed out, those who make those charges are often the ones to hop on an aircraft propelled by the very substance they deplore. To me that is hypocritical.
I really can't remember on how many threads on BE I've raised the concept of Energy Return on Energy Invested, but please research the numbers before posting again on the subject.
#82
Thread Starter
Binned by Muderators










Joined: Jul 2007
Posts: 11,708
From: White Rock BC











I don't know enough about the economics to be able to comment in an informed fashion but, from what I understand, the resource goes south at the moment and the US pays X for it. If it was able to go to other markets, the producers would obtain X+ for it. The additional price would mean additional revenues for Alberta and additional revenues for Canada.
I believe the US gets a "deal" on Albertan oil but I really don't know if selling at world market prices would mean more or less cash to Alberta once infrastructure and transport costs are taken into account.
It would appear that the argument you have made above is that BC should only approve the pipeline if BC benefits from it. While, on one level, I agree, what about the benefit to Canada? I am confident that there are workers employed in Alberta that reside in BC, will spend their money in BC, etc.
As I said, I have no involvement with the oil and gas industry at all, so no dog in this fight. I get the environmental argument; sort of. I accept there is a risk but I genuinely have no idea how big a risk it actually is.
I am curious to understand how those in BC (that oppose the pipeline) expect to have access to petrol for their vehicles without incurring any form of risk during transportation. Maybe they believe it simply magically appears at their local station but, if they are not that stupid, what about the risk of transporting it so they can access it?
We don't need Alberta oil. And, there are negligible rewards.
Last edited by JonboyE; May 21st 2013 at 12:47 pm.
#83
If the energy return is greater than the energy investment (which was the case in your example of 1:0.6) then there really is nothing to research. The economics of it are then governed by the oil price.
#84
Good. Now have a look at alternatives (including other sources of oil),
#85










Joined: Aug 2005
Posts: 14,227











Since when does "anti-oil" mean "against the northern gateway pipeline" ? Some comments were made in the thread to the effect that oil is a polluting energy source and that the country should focus on renewables instead of oil. As AC pointed out, those who make those charges are often the ones to hop on an aircraft propelled by the very substance they deplore. To me that is hypocritical.
#86
Thread Starter
Binned by Muderators










Joined: Jul 2007
Posts: 11,708
From: White Rock BC











The question is, why does BC need to be compensated for the pollution risk? If the pipeline were to leak, clearly there is a strong case for compensation; indeed the Province could demand guarantees from Canada that any incident is adequately compensated. But to ask for risk compensation in advance is a kind extortion is it not?
b) It is a normal commercial transaction. Some tax work involves more risk than others. The more likely my errors and omissions insurance will be needed, the more I charge. If I have any doubts about the client’s willingness or ability to pay an appropriate fee I ask for a retainer up front.





