Author Topic: The Wreck of BC  (Read 4946 times)

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Offline kimmy

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Re: The Wreck of BC
« Reply #780 on: April 19, 2018, 09:34:15 pm »
The nationalization of the industry (goal was 50% by 1990) was to allow for projects to ensure Canada self sufficiency. Compare Canada to Norway, they both had similar idea and Norway did extremely well but Alberta screwed Canada and we sold out to foreign companies that buy tarsands oil at 15% discount.

The Alberta oil industry was never "sold out" to foreigners.  The Alberta oil industry was *built* by foreigners, principally American.  Alberta entrepreneurs tried raising money in Canada for many years and couldn't get Bay Street to invest a cent. 

And the plan to "increase the Canadian ownership" of the oil industry was based around a regime of punitive measures aimed at foreign companies developing "old oil" resources (ie, drilling and exploring in Alberta).  This had an obvious negative effect on the industry and employment in Alberta.  Perhaps the plan's creators had the idea that (largely fictional) Canadian investors would simply step in and fill the void seamlessly, but it didn't turn out that way.  The net result was that trying to pitch this as a great thing for Albertans sounded pretty much like:  "We're going to burn your house down, but trust us, once we get it rebuilt you're going to love it!"


What the frig do you think energy self sufficiency means?

One of the principal uses for the money looted from the Alberta oil industry was to subsidize oil exploration elsewhere.  Principally offshore and in the northern territories.  (Why the enthusiasm for offshore and the north? Because the royalties from the oil would go straight into federal coffers. Go figure.)

There was no plan to build a pipeline to bring Alberta oil any further east. The plan was to produce oil in other parts of Canada.

The actual plan to bring Alberta oil to eastern Canada happened much earlier.   Diefenbaker's "National Oil Policy" built the pipeline, and required refineries in Ontario and west to buy Canadian oil.  The pipeline was originally intended to go all the way to Montreal, but Quebec refused. They didn't want to buy Alberta oil, they wanted to buy imported oil, which was cheaper at the time.  Ontario and provinces west of Ontario subsidized the early days of Alberta oil by buying it at prices higher than they would have paid for world oil at the time.   This was a great investment that has paid Canada back many times over.  Quebec and the Maritimes didn't help, though-- they continued buying import oil that arrived in tankers, because it was cheaper.


 -k
Masked for your safety.