Showing posts with label Tarsands. Show all posts
Showing posts with label Tarsands. Show all posts

Friday, June 27, 2014

Stephen Harper's National Energy Program May Do More Damage Than OPEC

" I witnessed first-hand the movement of an economy from historic boom to deep recession in a matter of months. A radical, interventionist blueprint of economic nationalism, the NEP caused the oil industry to flee, businesses to close and the real estate market to crash. The lives of honest, hard-working Albertans were upended and I came to know many of those who lost their jobs and homes." (Looking Back at Trudeau, Stephen Harper, National Post, October 5, 2000)

By 2000, Harper had left the Reform Party, and was running the National Citizens Coalition, a right-wing, anti-liberal non-profit; created initially to end public healthcare; but grew to include a fight against unions and a fight for the ability of corporations to fund politicians and political parties.

I don't know if Stephen Harper really believed that the National Energy Program caused the devastation he describes, or he was simply reviving an old wedge issue, while attempting to rewrite history.

Admittedly, the NEP was not popular in Alberta, but its cancellation by Mulroney, was the cause of most of their woes.
Oscar Wilde wrote that there are only two tragedies: one is not getting what one wants; the other is getting it. In the fall of 1985, the latter tragedy befell Alberta's oil industry. The OPEC cartel failed to agree upon a world oil price. The result was a global free-for-all among producing nations. Canada's oil and gas producers were caught in the middle. Having recently gained freedom from the NEP, Canada's oil and gas industry was not protected as the price of oil dropped from US $27 per barrel ... to $8 per barrel by August 1986. ... Forty-five thousand oil workers lost their jobs." (Of Passionate Intensity: Right-Wing Populism and the Reform Party of Canada, By Trevor Harrison, University of Toronto Press, 1995, ISBN: 0-8020-7204-6 3, p. 97)
In fact, most in the industry liked Trudeau's program because it allowed further exploration on public land. What they opposed was the proposed closing of tax loopholes by then Liberal finance minister, Allan MacEachen.

However, they couldn't campaign against that to attack the Trudeau government, so instead sold it as Ottawa aggression toward the West, and Ted Byfield, an early Reform Party organizer, kept the campaign alive. Wrote Harrison: "In the months and years that followed, Byfield's Alberta Report continued to mythologize the intent and the impact of the NEP", giving the Reformers their battle cry, "The West wants in".

Harper's National Energy Program

Since coming to power in 2006, the new and improved Reform Party, now calling themselves the Conservative Party of Canada, has done everything they could to deny that Climate Change exists, or that the Alberta Oilsands has anything to do with it, if it does.

That stance has made Canada a symbol around the world, of what Climate Change denial looks like, though it has increased Harper's creds with the diminishing Denial crew.

In the CPC's latest campaign, they suggest that the toxic bitumen coming out of the Oilsands is actually good for us. No more harmful than cooking a steak on a barbecue. Heck maybe we could bottle it and sell it as a sauce.

Economically, we've been turned into a Petro State with our fortunes dependant on how well the industry is doing.

Yet, according to the International Monetary Fund for every dollar in growth from oil, 82 cents goes to Alberta, with Ontario seeing just 4 cents. Yet the entire country has subsidized the Oilsands to the tune of 34 billion dollars.

Harper has also increased Alberta's federal transfer, while decreasing Ontario's and is moving the National Energy Board to Calgary, creating jobs in a province already apparently experiencing a labour shortage.

Will All of This Largesse Really Help Alberta?

The Harper government recently tried to bury a report, warning of the economic and health risks of the Alberta tarsands. Just another attempt at denying Climate Change exists, that has included muzzling scientists and ending tax breaks for environmental groups.

In the debate over the pipelines, we are told that without them Canada’s economic recovery would suffer serious damage. Says Russ Blinch in the Huffington Post: Prime Minister Harper says he won't lift a finger to help the environment because he's working too hard to protect jobs. In fact he is imperiling our future by blocking innovation in order to support a fading industry: fossil fuels.

The World Bank says that tackling climate change would grow economies, not hinder growth or recovery.

And while John Baird is putting pressure on the U.S. To approve the XL pipeline, a former Canadian ambassador claims that there is a very good chance that they won't be needed. Obama is now allowing American crude to be exported, which might also bring the price of oil down.

The Northern Gateway that would send the tar to China for refinery, is also not looking too promising. China is moving away from oil and switching to natural gas, which they are getting from Russia. Looks like Putin is laying claim to the Asian market with his own pipelines. So much for sanctions, as he's also moving away from the U.S. dollar.

So will Harper's National Energy Program cause the oil industry to flee, businesses to close and the real estate market to crash? Will it upend the lives of honest, hard-working Albertans, many of whom will lose their jobs and homes?

Jeffrey Rubin Former Chief Economist with CIBC World Markets asks Are Harper's dreams of Canada as energy superpower going up in smoke?
In the last decade, his Conservative government has done everything but roll out the red carpet for the energy sector. Whether it's multi-million dollar advertising campaigns in the United States, gold-plated junkets to foreign energy markets, or muzzling opposition from domestic environmentalists, never before have we seen Ottawa shill so unabashedly for a single industry ... Unfortunately for Canadians, it’s becoming clear that despite the Prime Minister’s best attempts at economic intervention, their government is playing a losing hand.
If Harper's Reform Party used the revisionist history of the impact of Trudeau's energy policies, with a tagline "The West Wants In", maybe the next election ours should be:

CANADA WANTS IN

But that won't happen until Harper is out.

Thursday, February 11, 2010

It May Not be Environmentalists Who Shut Down the Tarsands But Investors

The trouble with having the most secretive government on the planet, and a media that nurtures it's secrecy; is that we have to read online papers from across the globe to discover what's happening in our own country.

I'm not a scientist or an investment specialist by any means. Just a curious old broad who had a light bulb moment.

And in that moment, the future of the tar sands flashed before my eyes.

It started with a story out of the UK, covered by the Bloomberg Press:

BP Shareholders Protest Canadian Oil Sands Project
By Fred Pals
Feb. 8, 2010

BP Plc shareholders put a resolution to the annual meeting on April 15 for a review of the risks of the company’s Canadian oil sands project, following a similar protest against competitor Royal Dutch Shell Plc.

A coalition of investors requested the review in a resolution to BP’s annual meeting, FairPensions, the campaign’s coordinator, said in a statement today. The risks include increased carbon costs and reputational damage from environmental damage, according to London-based FairPensions, which represents unions, charities and faith groups.

“There’s now a growing group of investors who are questioning the wisdom of BP’s apparent move from ‘Beyond Petroleum’ to ‘Back to Petroleum’, which these resolutions illustrate,” Louise Rouse, director of Investor Engagement at FairPensions, said in the statement. “Investors are learning from recent shocks that it is in their interest to act as responsible owners.”

About 140 investors back the resolution, according to Duncan Exley, a director at FairPensions. The amount of shares held wasn’t provided.


FairPensions is a blanket organization that works with investors, faith groups and NGOs to ensure that pension dollars go to fund responsible investments.

While growing a nest egg for your retirement, your pension savings could also be paying for environmental destruction, illegal arms sales or the exploitation of workers. That's because the money you pay into your pension fund each month may be invested in businesses with irresponsible practices.

It's interesting to note that KAIROS, one of the first victims of this government's axe, also protested the Tarsands as it related to the future of humanity. They worked in countries being hit the hardest as a result of global warming. But as soon as you bring up the 'humane' word, it becomes a catalyst to the Harper regime and you knew their fate was sealed.

But even worse, they once questioned Israel's possible complicity in war crimes, something that even many Israelis are questioning. Jason Kenney pulled out his old testament, went into a trance, started speaking in tongues and POOF, they were gone.

This brings me to a recent article in the Toronto Star, again about future western investment in the Tarsands:

2 U.S. firms wash hands of tar sands
February 10, 2010
By Mitch Potter Washington Bureau

WASHINGTON-Canada’s controversial tar sands industry took its first retail blow Wednesday as two Fortune 500 companies announced plans to eliminate the high-carbon Alberta fuel from its supply chain.

Are we detecting a trend as investors start to pull out of the project, not because of environmental concerns so much as the cost of cleaning up the oil to meet environmental standards? Perhaps.

Is this why Jim Prentice announced that we are lowering our targets even further and is hinting at an exemption for Alberta?

But what if none of that works, and more and more cautious investors refuse to throw good money at a project with questionable returns? Stephen Harper did promise $800,000,000 of our money for carbon capture, but many people know that's a farce.

We now have to go to Hong Kong for the next stage of the story:

SEOUL/HONG KONG
Korean Oil puts Canada on its radar
Miyoung Kim and Joseph Chaney
RTGAM

SEOUL/HONG KONG - Korea National Oil Corp (KNOC), sitting on a multi-billion-dollar warchest, is setting its sights on Canada as the state-owned company aims to ramp up production and catch up to Asian rivals.

Seoul said this month that cashed-up KNOC will spend $6.5-billion (U.S.) on M&A in 2010 in an effort to cut South Korea's almost total dependence on imported oil.

That goal will put the company in direct competition with Asian energy giants such as PetroChina, Malaysia's Petronas, and India's ONGC.

KNOC may be eyeing assets offered by such Canadian companies as its top oil firm Suncor Energy, No.2 independent petroleum producer, EnCana Corp. and No.3 independent oil explorer Talisman Energy.

In addition, Canadian oil sands company Opti Canada and its peer Nexen Inc. are seen as potential acquisition targets. Their shares moved up as recently as late last year on speculation of bids from Chinese energy giants. So far, no public offers have emerged.

Foreign owned, foreign controlled, and propped up with Canadian tax dollars. Gotta' love neoconservatism.

But why would Korea be willing to invest in a project with a questionable future, because of environmental concerns?

Drum roll please ...

Back to Bloomberg Press

Harper Says Global Recovery Must Precede Environment
By Rob Delaney
Dec. 7 (Bloomberg) -- Canadian Prime Minister Stephen Harper said he will use Canada’s co-chairmanship of next year’s Group of 20 countries meeting to urge members to put economic recovery before efforts to protect the environment.

“Without the wealth that comes from growth, the environmental threats, the developmental challenges and the peace and security issues facing the world will be exponentially more difficult to deal with,” Harper said in an address to South Korea’s National Assembly.

So where will we find the next bit of news on what's happening in Canada? Maybe I'll check out the Timbuktu Gazette.