Just How High Are The Enbridge Stakes
Monday, January 30, 2012 @ 3:45 AM
Newt Gingrich who is seeking the Republican nomination in the US, has entered the debate on the Gateway pipeline and with it Enbridge suggesting that either he or Barrack Obama know more about the projects than we do, or we are simply a bunch of sheep being herded into thinking that we are having some input into the project.
Gingrich said recently that Stephen Harper was about to cut a deal with the Chinese and they will build a pipeline straight across the Rockies to Vancouver. We, (referring to the USA) will get none of the jobs, none of the energy, none of the opportunity. He added that his goal is to make America so energy independent that no president has to bow down to a Saudi King.
Very strong words indeed in that it gives us an indication of just how big the stakes are in the Enbridge deal. You have to wonder just what input a few thousand people from northern BC have in the eventual input when the top brass of the US and Canada are talking like a deal has already been made.
Well nearly already, because if Newt gets his way, all the oil from the oil sands headed south will be refined in the USA and sold in that country. We will get exactly what we will receive in the Enbridge deal, basically nothing. But like sheep to slaughter we continue down the path thinking we are going to be the big winners in all of this.
Set aside the environment argument for a moment, this pipe line has everything to do with control of the world’s resources, and certainly nothing to do with the well being of the host country.
Those Kings that Newt refers to may be getting a tad unhappy about the way their resources are being plundered, we in Canada are Johnny come lately and so the final chapter is yet to be written about how we took of the largest and most secure oil reserves in the world and gave it up for a few trinkets, rather than trying to secure the future for Canadians first.
I’m Meisner and that’s one man’s’ opinion.
Comments
One argument we here is if the pipe line goes through Canadians will have to pay world prices for oil and the price of gasoline will rise at the pump. In Arizona right now 1 USG of gasoline sells for #3.20 – $3.40 or about 0.90 cents a liter. When was the last time anyone in PG bought gasoline for 90 cents a liter?
Iran says it is going to start refining their own oil. Surely there is a way we can sell a finished product and actually create the jobs Enbridge says the pipeline will create. Every winter we have a fuel shortage and get we keep on focusing on exports.
“We will get exactly what we will receive in the Enbridge deal, basically nothing.”
Really? According to the proponents, we’ll be getting jobs and tax revenue in the billions.
I know people don’t like to hear it, but the oilsands have been a huge boon to the Canadian economy, and continues to be.
We can plug our ears and stomp our feet all we want, but it doesn’t change the facts.
Hey JohnnyBelt- news for you- the oilsands won’t grind to a halt if Gateway isn’t built. The large corporations might lose a few bucks per barrel by not selling directly to the chinese, but the chinese can still buy the oil, it might take a longer route to get there, thats it.
News for you – the US doesn’t want this pipeline to go through. They don’t want to have to compete with China for the oil. There is more than ‘a few bucks’ at stake, otherwise this multi-billion dollar pipeline project wouldn’t be proposed.
[urlhttp://oilsands.infomine.com/companiesproperties/[/url]
Visit the link to discover which international companies are involved in the tarsands.
How much allegiance do they have to their respective countries? Probably zero. It’s all about making big bucks by selling to the countries which pay the biggest bucks for the unrefined raw bitumen.
In this case it is apparently Asia, more specifically China. China’s economy is growing in leaps and bounds while Europe and Japan are retracting and North America is stagnating under its crushing debt loads and the onslaught of Asian made manufactured goods exports.
This century is the ASIAN century and China (and Korea and India) need every barrel of oil and every boat load of CNG they can get their hands on!
http://oilsands.infomine.com/companiesproperties/
Selling oil to the Chinese is worth about 20 bucks a barrel more than to the US. Also the US does not really need this oil. It will be shipped to the big refineries on the Gulf Coast then exported.
What do you think of the 5.5 cent per litre carbon tax folks?
Seamutt do you have any facts to back this ludicrous statement? Oil is a global market. The chinese won’t pay 20% more for anything, including oil.
Johnnybelt- Enbridge is pushing this pipeline because they can make some bucks transporting the oil. That’s their business. But its our environment. That’s our business.
Hey All,
If there is going to be a show stopper to this proposed Gateway pipeline is those First Nations that oppose it, will see to it that it will be tied up in courts for years to come because of their First Nation’s right and title will be infringed upon, if it’s “approved” by NEB. Besides, the feds, the Alberta gov’t and industry should anty up the dollars to refine oil for this country’s future energy needs.
We are forever worried about the environm ent. But what about those of us who live in it? Whats going to kill us is the price of gasoline that we have to pay.
As has been pointed out the Americans pay .90 cents per litre.The entire enbridge noise is about profit for big corporations
Cheers
(da/606527http://www.ottawacitizen.com/business/just%2Brefine%2Bbitumen%2BCana8/story.html)
Here is a great article that explains the economics of oilsand refining. Its easy to say we should refine it all here. But that simplistic thinking is akin to the green energy replacing fosil fuels debate. Sounds good but reality is much different.
@dow, here is a working link.
http://www.ottawacitizen.com/business/just+refine+bitumen+Canada/6065278/story.html
thanks Johnny.
That article may speak about how costly it MAY be, but it doesn’t justify it enough, rather it forces more questions of why…anyway, anything from the likes of the Ottawa Citizen is along the same lines of something from the Edmonton Journal or Vancouver Sun…take it with a grain of salt, because these articles are not “un-biased”…regardless of what is stated at the end of the article, by some “independent think-tank”…
Seamutt wrote: “Also the US does not really need this oil.”
Info from the CIA World Factbook:
The USA imports abut 50& of its current annual oil consumption. It exports about 10% of its total consumption. Another way of putting that is that it exports about 20% of what it imports. So, it appears that they have excess refinery capacity and presumably have some income from using that capacity.
The USA consumes twice as much oil as China yet has only one third the population of China.
The USA comsumes 6 times as much oil as India, yet has one third the population of India.
Based on 2010 consumption and imports, the proven domestic oil reserves will provide the enough oil for around 6 years.
More domestic oil will become available at a higher price due to extraction costs.
Oil consumption for the largest users (not per person but per country) is listed as:
1United States19,150,0002010 est.
2European Union13,730,0002010 est.
3China9,189,0002010 est.
4Japan4,452,0002010 est.
5India3,182,0002010 est.
6Russia2,937,0002010 est.
7Brazil2,654,0002010 est.
8Saudi Arabia2,643,0002010 est.
9Germany2,495,0002010 est.
10Korea, South2,251,0002010 est.
11Canada2,209,0002010 est.
12Mexico2,073,0002010 est.
The population of the EU is just under 500 million.
The population of the USA is just over 300 million.
Canada has 9 times the proven reserves of the USA.
Based on the same calculation as the USA, Canada has enough oil for 137 years.
If we were to make an oil trade agreement with the USA which would keep he status quo of the import export regime of both countries but pool the oil reserves so that the USA would be the preferred customer, then the combined operations, based on current proven reserves would last 40 years.
That oil consumption is barrels per day.
Silverback, Its not all gospel, but it sheds some light on why there is not a huge rush to build multi billion dollar refineries.
dow7500, I agree, it sheds SOME light on the subject. I think its time ALL our gov’ts(FNs, Prov and Fed) and industry have a good discussion about oil refining in this country. Like I said, that particular article really forces more questions than answers…I forgot to include the Calgary Herald in that mix of news media too…more hard facts are needed to make an informed decision.
Comments for this article are closed.