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05-12-2018, 08:50 AM
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Banned
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Join Date: Mar 2018
Posts: 123
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Why refineries are not being built in Canada/Alberta
http://edmontonjournal.com/news/cana...a-c443e4a36251
Very interesting article (not sure if I agree with all of it, but it does make valid points).
Especially valid is the amount of money it takes, the current refineries are not at full capacity, and we are exporting more refined oil than importing.
Quote from the article:
"Good luck getting private investors to fund all these new refineries
Refineries aren’t cheap. Kitimat Clean would have cost $22 billion — about the same as Canada’s annual defence budget. And it’s not exactly an ideal time to enter the refinery trade. We already share a border with the world’s most prolific and experienced refiner of oil (not to mention the fact that most U.S. refineries paid off their mortgages long ago). Any new Canadian refinery would also be poised to celebrate its opening day just as North American oil demand is set to taper off. According to a 2016 analysis by BP, U.S. energy demand will peak in 2027 and “decline from that point.” Within that energy mix, meanwhile, oil is increasingly getting muscled out by alternatives such as renewables and natural gas. Add it all together, and “more Canadian refineries” is rapidly becoming a terrible place in which to bet a few billion dollars. And a note to B.C.’s Green Party-backed provincial government: Expending vast amounts of resources to build doomed industrial facilities is usually quite bad for the environment." The last refinery built is the disaster Sturgeon refinery, and if the government had not contributed, it would never have been built.
If private investors won't build the refineries, should the taxpayer be? I thought we are private enterprise?
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05-12-2018, 09:35 AM
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Join Date: Jul 2014
Posts: 1,916
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Shell’s Carmen Creek project, they crippled shell with laws and taxes until it was no longer feasible to try and operate in the province.
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![Old](images/statusicon/post_old.gif)
05-13-2018, 12:34 AM
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Join Date: Oct 2008
Location: Alberta
Posts: 2,824
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Quote:
Originally Posted by muledriver
http://edmontonjournal.com/news/cana...a-c443e4a36251
Very interesting article (not sure if I agree with all of it, but it does make valid points).
Especially valid is the amount of money it takes, the current refineries are not at full capacity, and we are exporting more refined oil than importing.
Quote from the article:
"Good luck getting private investors to fund all these new refineries
Refineries aren’t cheap. Kitimat Clean would have cost $22 billion — about the same as Canada’s annual defence budget. And it’s not exactly an ideal time to enter the refinery trade. We already share a border with the world’s most prolific and experienced refiner of oil (not to mention the fact that most U.S. refineries paid off their mortgages long ago). Any new Canadian refinery would also be poised to celebrate its opening day just as North American oil demand is set to taper off. According to a 2016 analysis by BP, U.S. energy demand will peak in 2027 and “decline from that point.” Within that energy mix, meanwhile, oil is increasingly getting muscled out by alternatives such as renewables and natural gas. Add it all together, and “more Canadian refineries” is rapidly becoming a terrible place in which to bet a few billion dollars. And a note to B.C.’s Green Party-backed provincial government: Expending vast amounts of resources to build doomed industrial facilities is usually quite bad for the environment." The last refinery built is the disaster Sturgeon refinery, and if the government had not contributed, it would never have been built.
If private investors won't build the refineries, should the taxpayer be? I thought we are private enterprise?
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Explain what the disaster is please?
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![Old](images/statusicon/post_old.gif)
05-13-2018, 06:28 AM
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Join Date: Jul 2014
Posts: 1,916
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Government funded. Guaranteed paid production with tax dollars.
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![Old](images/statusicon/post_old.gif)
05-13-2018, 07:35 AM
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Join Date: Apr 2013
Location: Half Moon Lake ( North )
Posts: 1,465
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Thanks, good read
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![Old](images/statusicon/post_old.gif)
05-13-2018, 07:54 AM
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Join Date: May 2018
Posts: 79
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Interesting read for sure. At the end of the day, wherever it is refined, prices at the pump will still be high I think.
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![Old](images/statusicon/post_old.gif)
05-13-2018, 08:14 AM
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Banned
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Join Date: Mar 2018
Posts: 123
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Quote:
Originally Posted by petew
Explain what the disaster is please?
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The huge amount of taxpayer dollars that are at risk. If this was such a good idea and viable, why didn't private industry fund it all?????
The most recent report, which was released last week, includes an overview of the Alberta Petroleum Marketing Commission’s handling of the business deal between the province and North West Redwater Partnership. Last year, then Alberta Party leader Greg Clark called on the auditor general to audit the $8.5-billion Sturgeon Refinery since there’s a big risk to Alberta if the project doesn’t succeed. The province has committed $26-billion in resources over the next 30 years to try and ensure failure isn’t an option.
http://www.fortsaskatchewanrecord.co...refinery-risks
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05-13-2018, 01:43 PM
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Join Date: Aug 2012
Posts: 2,169
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I think its funny that people moan about trying to get refineries built and then moan two pages down the newspaper about how refiners are a cartel and fix prices or supply. Hardy hardy har har har
Lots of people also complain about how we sell bitumin for cheap to other countries then complain about how no one wants to build bitumin extraction projects.
People are silly, no one burns bitumin or oil in their cars. Companies like exxon mobil, shell, valero, total, etc dont really like competition. If you can get producers to produce yet not refine the refiner gets a better price. Alberta is an excellent example produces waaaay more oil than we burn and we have to sell it at a discount to exxon, valero, BP etc to get it marketed.
Managing refining capacity to keep refineries full without flooding the fuels market is an ideal situation for the major oil companies. Eventually all oil turns into fuel.
There is lots of crying about the sturgeon refinery probably because it is taking a big steamer in shell, esso and suncors refining breakfast in alberta. They go from basically writing themselves a diesel fueled paycheque to having some one else take a slice of the pie
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05-13-2018, 09:00 PM
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Join Date: Feb 2017
Posts: 1,032
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They should be built.
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05-14-2018, 07:51 AM
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Join Date: Sep 2007
Posts: 2,382
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Since Canada is a net exporter of "refined"product, that tells me that we already have enough capacity within our refineries to provide for our country. What we do not have is atheism ability to ship from.coast to coast easily.
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05-14-2018, 09:40 AM
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Join Date: Sep 2012
Posts: 6,307
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Sturgeon Upgrader best thing that could happen in Alberta. We now have a competitor for Big Oil and should help to keep our diesel burner fuel prices down. Will also be great for farmers so their diesel fuel costs do no go through roof. Co-op refinery in Regina helps keep fuel costs alittle bit honest as well.
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