January 17, 2016

Sturgeon Refinery: Why do NDP prefer projects where Albertans are sure to lose?

Holly NicholasRebel Commentator

The Sturgeon Refinery that’s about 60% complete and located 45 km away from Edmonton, is looking more and more like a government boondoggle.

The refinery is expected to process bitumen to convert to diesel fuel and other products.

Initially backed by the Progressive Conservatives as a joint venture between CNRL, North West Upgrading and the Government of Alberta, it was quietly announced that an additional $2 billion would be committed to the project, bringing total costs to $8.5 billion.

Now the NDP has increased its borrowing limit for the project from $300 million to $400 million, raising concerns over the risks to the Alberta tax payer as a result of the governments continued financial contributions to the endeavour.

There are also concerns about the profitability of the project and Moody’s is considering a credit downgrade. It’s recently come out that the profits from the refinery over 30 years will be $200 to $700 million – for a $8.5 billion investment.

So not only is the government taking the most risk since CNRL and North West Upgrading will operate the refinery, but the profit margins on this are razor thin.

In all reality, Albertans stand to lose billions of dollars on this project just as a result of variable market trends. And the Alberta tax payer will be on the line for an estimated $26 billion in toll fees.

There’s a reason why no new refineries have been built in Canada in over 25 years. They aren’t profitable, nor do they add value and they’re a burden on the tax payer.

Greg Clark of the Alberta Party and Brian Jean of the Wildrose Party have come out and criticized this project for being such a burden on Alberta tax payers. And it looks like the NDP want to do more refining in Alberta, as per their election platform.


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commented 2016-01-26 15:02:21 -0500
How can you even ethically suggest this was the fault of the NDP Holly? Have you read the agreement, signed under the PC’s. The NDP cannot break this previous commitment, the risk was forced upon them by CNRL and the PC’s. Read the agreement, post the truth.
commented 2016-01-23 16:46:19 -0500
Shows what I know. I always thought refining within the country was a good thing. Why have they not traditionally been profitable?
commented 2016-01-18 13:32:29 -0500
“Please explain how the WILDROSE is partly to blame, when they weren’t in power… "

Initially Wildrose correctly identified this project as a boondoggle-in-the-making and an example of corporate welfare. But then Danielle “Hotpants” Smith hopped between the sheets with Grinnin’ Jimmy…so there went the voice against it when it was most needed.
commented 2016-01-18 10:42:40 -0500
commented 2016-01-18 08:45:35 -0500
To Charles Moulton,

You said, “t was the two flakes from the Conservative and Wild Rose Party that screwed us on this deal”

Please explain how the WILDROSE is partly to blame, when they weren’t in power…
commented 2016-01-17 20:18:19 -0500
The oil companies canceled all of the merchant up graders when Stelmach raised royalties on the oilsands, and told government to build them themselves. So the stupid government went ahead with one. It will end in a fiasco for the taxpayers like all of the other government scams that ended in failure. After which the government said they were no longer going to be involved in the business of business. Which turned out to be another government lie.
commented 2016-01-17 18:11:03 -0500
Hi Holly, that was another great video. It is rare to see somebody have so much knowledge of the oil industry, economics, and politics. On top of all that, you present your news in a way where you can be taken seriously. I look forward to more videos from you.
commented 2016-01-17 17:23:36 -0500
Refining bitumen in Alberta has always been a bad idea. And it is even a worse idea when the government is involved. Has anyone ever known when a government in Canada did not spend more on a project that they got back in return? Governments should never be in business as they always screw it up.
commented 2016-01-17 16:18:12 -0500
Sounds typical for any government project
commented 2016-01-17 16:09:16 -0500
We need to stop letting the left muddy the waters. The pc’s were really liberals at best we have not had a real conservative govt here for decades. They will blame this boondoggle on us as conservatives saying we are slaves to our corporate masters. We need to take over the wildrose from inside and establish a real consevative choice. Small local govt no more union pressures on healthcare and education and no more ill advised partnerships or sweetheart deals for industry.just lowered taxes and less regulation
commented 2016-01-17 15:26:11 -0500
We have to be fair, when it comes to this type of shit.
The NDP is a government that is designed to destroy the province. This we all agree on. But when the construction of this project began it was way before any of the NDP losers were voted into power. This article should be re-stated.

The Question should be; With the low oil prices why is it that the Alberta Taxes payers have to deal with this cost right now? Why can’t the oil companies pony up and finish building the refinery? They are the ones in the end that will be making all the money.
commented 2016-01-17 15:17:12 -0500
I have to say, this one! Is on the Conservatives. They were the ones that signed the bill, and even I can see the NDP is just trying to keep thier heads above water.
This is why the Conservatives are now out of power. It was all these stupid deals they made that caused us to rebel.
No I did not vote for the fucking NDP. But on this one, it was the two flakes from the Conservative and Wild Rose Party that screwed us on this deal.
commented 2016-01-17 15:05:57 -0500
With the NDP, you get it from both sides.