Keystone XL

[Kenny-sauga]

http://news.yahoo.com/canada-steps-us-pipeline-lobbying-efforts-222028989.html

http://news.yahoo.com/transcanada-says-reroute-planned-pipeline-232123880.html

So much noise there. My question is why not sell OUR oil to US first at a reasonable price, and then worry about the bigger plans? I think what I am missing is Corp/Gov greed here!!!

...By US above, I mean Canadians.

 

[SkyRider]

It is extremely difficult to do business in the U.S. now. Way too many political considerations.

 

[fmahovalich]

I asked that same question OP.... apparently we do not have the refineries in Canada....so we ship the crude to the Gulf Coast...and then we buy it back in various form, including gasoline!

 

[Kenny-sauga]

I asked that same question OP.... apparently we do not have the refineries in Canada....so we ship the crude to the Gulf Coast...and then we buy it back in various form, including gasoline!

I haven't done my research but what makes good economic sense. Sell crude or built refineries? Both are long tern fixed assets, so company will get their fair share of depreciation as a tax write offs. It might also be more profitable to sell the final product rather than buying it back.

 

[Kenny-sauga]

On another note, we are still paying the debt relief for the hydro plant(s). Where did out petro tax dollars went? Why we did not built refineries in the first place?

Its too many variables and I am tending to be nationalist. Canada first. No!

 

[fmahovalich]

i THOUGHT THE SAME THING.... wHY NOT BUILD THE REFINERIES RIGHT AT THE WELLS.

aLAS...i GUESS ITS A BIGGER PICTURE THAN i SEE!

 

[Kenny-sauga]

Yeap. You are right. It definately is a bigger picture. And lets not forget the famous gun registery.

And for additional food for thoughts...lets add the cost of lobbying to the cost of pipeline and could probably have a refinery and a quarter

 

[SkyRider]

... wHY NOT BUILD THE REFINERIES RIGHT AT THE WELLS.

Building a new refinery is hugely expensive. For example, Kuwait's new refinery is expected to cost $19billion.

 

[anon1]

Aren't the companies extracting the oil American owned and want the crude to go to THEIR refineries in THEIR country for security?

 

[fmahovalich]

You are right Anon...

But that is perplexing...


It is OUR OIL...(CANADIAN) within one of the world biggest OIL FIELDS!!!

 

[zz000ter]

Build a few more refineries here in Canada!

 

[Mencken]

The US gulf coast refineries are, or are becoming, underutilized. There are also many of them that can process or upgrade heavy oil. Hence the need for increased pipeline capacity from the oilsands. It makes no economic sense to build refineries when there is excess refining capacity in the US.

Basically Canada gets more $ for its oil if there is an increased capacity to get the crude to market...any market.

Building refineries near the production would not help...you still have to get the product to markets, and the pipeline capacity from Alberta to markets is basically at or near capacity.

 

[Ceiling Cat]

The way I read it, it is all a smoke screen. Build the pipeline, do not build the pipeline. In the end it will not make a bit of differnece. The U.S. government wants the oil, and the pipeline. It is Militarily, politically, and economically strategic to the USA. This pipeline will be built by hook or crook.

 

[Kenny-sauga]

Ceiling Cat has a point.

So, US will get the pipline, oil, and jobs in the US. What will Canadins get? We will buy the refined gas back from US and pay an arm and a leg!!! f**** that

 

[fuji]

I have to wonder if it isn't in Canada's long-term interests NOT to build this thing, and slow down our the development of new oil production a little.

Oil is going to run out in the future. Why are we in such a hurry to sell it all now? The future value of that oil in the ground is going to go UP, not down. Why not slow down development a little, and sell it at higher prices in the future?

Everybody wants more profits now now now, and for understandable reasons--but from a national point of view, in terms of the national interest, isn't the national interest best served by maximizing the long run value of our resources?

 

[Kenny-sauga]

There is nice book on Alberta's oil sand. Below is the title, and ISBN. I recommend reading it.

Ethical Oil by Ezra Levant
978-0-7710-4643-8