February 20, 2019

Notley’s “zero risk” investment to move oil by rail just got four times more expensive

Sheila Gunn ReidRebel Host | The Gunn Show

Alberta premier Rachel Notley is making herself a railway mogul to hide her failures on pipelines and this bad idea is going to cost four times more than the $1billion price previously estimated.


CBC reported:

“The Alberta government has signed contracts with Canadian National and Canadian Pacific to lease 4,400 rail cars to take oilsands crude to American and international markets. Provincial officials say the program will cost $3.7 billion over three years and result in $5.9 billion in revenues over the same period. The anticipated net revenue is $2.2 billion over the same period.”

This sounds more like a Nigerian prince scheme than a stopgap plan to move oil. We just give Notley $3.7 billion to buy some trains, and she’ll give us back $5.9 billion? Sure.

Notley says this is a “zero risk” investment and a good value for Albertans, and not the shameless, desperate waste of tax dollars Alberta doesn’t have, in an effort to gloss over the NDP’s complete and total failure on the pipeline file.

She’s offloading the risk and costs the private sector used to carry, onto Alberta taxpayers instead.

Today, I’ll show you how much Notley’s failures have cost us in lost pipeline capacity. I’ll put her measly, but expensive, 120,000 barrels of oil per day in her 2020 train pipeline into some real perspective.

For example, Keystone XL, the pipeline the NDP desperately need but never wanted, requires the intervention of a President that the NDP can't help but insult. Keystone XL would move nearly 830,000 barrels of Alberta oil per day and it wouldn't cost us a red cent except maybe the need to tone down the anti-Trump rhetoric and a trip or two to Washington.

It Notley really wanted to move some oil, she would be in Washington grovelling to President Trump for some help.

But for her, it's easier to spend $4 billion we don't have, rather than swallow her pride and do the right thing for Albertans.

Comments
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commented 2019-02-22 18:49:33 -0500
Subtract the total from all future transfer payments to Quebec.
commented 2019-02-21 10:46:40 -0500
I have heard no mention of the horrible tragedy of Lac-Mégantic – and what those rail cars were carrying, or the death and destruction and property damage resulting…
commented 2019-02-21 09:22:10 -0500
Just one of many articles that call Notley’s no-risk claim ridiculous

https://www.bnnbloomberg.ca/notley-sees-no-risk-in-crude-by-rail-plan-analysts-say-not-so-fast-1.1217033

“(Notley is] spending $3.7 billion of … Albertans’ money to try to create $2.2 billion of profit in the long term, on her ‘zero-risk’ policy,” he said. “As an investor, that’s irresponsible. A regulator would probably take my license away for making a statement like that – ‘zero-risk’ – that’s ridiculous.”
commented 2019-02-21 07:40:12 -0500
Pipelines are a far safer way to transport oil.
commented 2019-02-21 07:14:40 -0500
Follow the money.Somebody is obviously making a lot of money in this caper.
It is complete folly to move this volume of oil by railcar. The logistics involved and risk are orders of magnitude greater with rail cars compared to pipelines.
Insanity rules Alberta.
commented 2019-02-21 07:01:54 -0500
Oh for the want of another Ralph Klein!

But instead we will get Jason Kenny.

Well, better than Notley, that is for sure. Lesser of two evils.
commented 2019-02-21 06:23:43 -0500
Once you give a leftist party a majority number of seats in a legislature , there are no restraints on their spending ,lust for and application of power.
Essentially a dictatorship forms for the length of their mandate.
I presume there are no legal injunctions or lawsuits that can be filed to prevent this travesty of an agreement from moving forward.
You can call Notley Chiquita , the head of the banana province of Alberta.
commented 2019-02-21 04:45:58 -0500
Anybody else wonder how a justification can be made to ship oil via rail rather than pipelines on the second biggest land mass in the world? Even the Russians, at number one on the land mass scale, ship their oil and gas via pipelines!… Hello Ottawa, Hello Ottawa, any, and I do mean ANY, of you dumb turds even listening?
commented 2019-02-21 02:42:21 -0500
Never knew a commie or a socialist to ever do anything below the predicted initial cost!
commented 2019-02-20 23:49:42 -0500
Wow! I thought she was talking about wagon trains, dose this mean she will put the carbon tax up for all those dirty diesel engines. Wot a Wanker.
commented 2019-02-20 23:17:10 -0500
Sheldon, if need be. It could come.
commented 2019-02-20 21:21:50 -0500
Not only is it a hair brain idea from different perspectives, but the taxpayer will have to subsidize the shipment of every tanker full of oil, because the differential on a barrel of oil is now to close to the price of WTI.
commented 2019-02-20 20:47:54 -0500
Check out Alberta fights back.com
commented 2019-02-20 20:35:13 -0500
Interesting. Warren Buffet has interests in Canadian Pacific, and has just recently re invested in Suncor. What a coinkidink.

https://money.usnews.com/investing/news/articles/2019-02-20/buffetts-suncor-bet-to-revive-investor-interest-in-canadian-energy

“the Berkshire’s new 0.7 percent stake in Suncor, valued at C$488 million ($370.54 million) at current prices, is already worth 23 percent more since Berkshire bought it in the last quarter. It comes more than two years after it sold for $618 million a 1.4 percent stake it had bought in 2013 and added to in 2015.”
commented 2019-02-20 20:17:10 -0500
The oil by train is a ‘Hail Mary pass’ on the part of Notley to retain power. While most Hail Mary’s fail, Toronto did defeat Calgary in the 2017 Grey Cup on one. So voters need to stay on guard, not take the next election for granted, get out to vote and not stay home assuming the NDP will be defeated.

Also, where are the Transport and Energy Ministers on this file?
commented 2019-02-20 20:00:25 -0500
Billboards are popping up in Alberta to have a referendum on separating-lets do this Albertans we’ve taken it up the arse long enough-time to look after ourselves,Confederation is nothing but enslavement under a federal govt.
commented 2019-02-20 19:48:21 -0500
My God between this stunned cow and the dope in Ottawa they are seriously f-cking up our oil and gas industry,this is a clear example why govt should stay the hell out of the private sector!! We need to vote this skank out and Alberta needs to separate hands down!!!
commented 2019-02-20 19:21:47 -0500
Rachel Notley has zero understanding of economics. In her warped world, governments make everything. That Marxist hag needs to go!