February 12, 2019

UPDATE: NDP-adopted, UCP plan to curtail oil production blows up on Alberta politicians

Sheila Gunn ReidRebel Host | The Gunn Show

The NDP-adopted, UCP plan to curtail Alberta oil production is blowing up in all of our faces in huge and potentially expensive ways.

The decidedly un-conservative idea to have Alberta’s inept NDP government take command of the oil economy in order to manipulate prices, came from an unlikely source: United Conservative Party leader, Jason Kenney.

And because it came from the right side of the aisle, the embargo on Alberta oil was embraced with little skepticism or analysis from some (usually) smarter conservatives.

It was disappointing to see them embrace ideas that could have been cooked up in Caracas or in offices of the Tides Foundation.

Premier Notley ran with Kenney’s idea and imposed government-mandated production cuts beginning January 1. At the time, I predicted upstream job losses. You can watch my original coverage of Notley’s OPEC-style supply management of the oil industry at www.LiftTheEmbargo.com.

The problems the curtailment would cause were predicted — and are now upon us.

Late in January, less than one month into the embargo, the Lakeland Connect reported that without changes to Notley's the formula by February 1st, oil company CNRL would be shutting down their assets in Bonneyville, Elk Point and Lloydminster including their ECHO pipeline.

The company estimated that approximately 500 to 1,000 direct employees, and up to 2,400 contractors and service providers, would be out of work in the Lakeland region without a change to the rationing.

By February 1st, the government announced that it would ease limits on production in February and March for CNRL, allowing the company to avoid massive layoffs and keep their pipeline open.

But nearly 3,400 hundred jobs and a pipeline, isn't all that the curtailment put in jeopardy.

Notley’s plan to buy 7,000 rail cars and 80 locomotives to ship oil by rail in lieu of a pipeline - which according to Notley would cost $350M, and according to rail experts would cost up to $1B - is now basically valueless.

Imperial oil is cutting its crude-by-rail shipments from 168,000 barrels per day in December to near-zero this month. CEO Rich Krueger said the “ill-advised, ill-informed” production cuts ruined the economic case for shipping oil by rail to customers in the United States.

The Financial Post is reporting that oil by rail volumes fell fifty-six per cent in the first week of February compared with three weeks earlier.

I guess Notley’s dreams of being the Fat “Thomas the Tank Engine” Conductor, are being curtailed too.

None of Alberta’s major political parties are talking about this extreme boondoggle… because they’re all to blame.

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commented 2019-02-13 13:57:51 -0500
“The decidedly un-conservative idea to have Alberta’s inept NDP government take command of the oil economy in order to manipulate prices, came from an unlikely source: United Conservative Party leader, Jason Kenney.”

No shit. Imagine an idea like that coming from another pinko in a blue suit.

Kenney, Scheer, Prentice, Clark, Ford….

Yup, Ford too. The guy who said he was there for the little guy is just another back-stabber.

commented 2019-02-13 09:53:53 -0500
commented 2019-02-13 09:36:39 -0500
commented 2019-02-13 09:35:33 -0500
To the people of Alberta and the rest of Canada also, I would say, watch the video above.
commented 2019-02-13 01:08:16 -0500
All these leftists are like stupid seeking missiles. If there is a stupid idea they hit the bullseye every time.
commented 2019-02-12 22:06:21 -0500
Maybe Jason Kenny said there should be oil production cuts on purpose to make the UCP look better. Welcome to the People’s Republic of Venezberta.
commented 2019-02-12 21:31:56 -0500
William….You’re preaching to the choir…metaphorically. To be fair, I’ve not hear Sheila trumpet her support for kenney but has been hopeful the upc would pull their head from their ass’s. But its still the former pcp’s in red clothing in the back room calling the shots. I despised them more than the current ucp, if that is even possible.
commented 2019-02-12 21:24:19 -0500
Lastly….Hey Murray Edwards, you were one of the clowns standing with snotley at the oilsands slapping each other on the ass, virtue signaling about the carbon tax, and what great thing it was. Well….be care what you wish for there mr. edwards.
commented 2019-02-12 21:13:03 -0500
Yes, you could hold this out as evidence that Sheila is breaking with the UCP. I also note that an associate of hers, Bernard the Roughneck (Neil Hancock), also came out against Kenney recently; so maybe a change is in the works. Time will tell. SGR’s reportage has been woefully biased. She keeps attacking the NDP for policies which are the same as the preceding Conservatives. Kenney is currently embroiled in several scandals which she has not touched.
On the issue of “it was Kenney’s idea” – to be truthful several oil firms proposed this before Kenney; and of course the environmentalists have been calling for cuts for eons.
Also she says “no major party opposed” – wrong, the FCP opposed and rounded on Kenney for supporting it.
Her keenest observation about Jason and the Astronauts is that his policies might as well as have been proposed by Greenpeace. He has also repeatedly called for shutting the existing Trans Mountain line to “punish those lefties in Victoria.” This is exactly what the environmentalists want. Kenney supports conventional “global warming science” and a carbon tax. He’s the most two-faced politician I’ve ever seen.
commented 2019-02-12 20:42:39 -0500
Further…..William….is Ms. Gunn-Reid still pimping for a job with kenney as you have not so eloquently claimed in previous posts?
commented 2019-02-12 20:40:18 -0500
Charred / Peter….You’re both bang on about Kenney. I’ve posted before that in my neck of the woods, the vote against the merger, for which i voted against, didn’t even register in the results. Then Kenney, when voted in as leader, was an instant non support of the upc for me. So people, this is the classic case of voting for what you dont want (Notley ndp), instead of voting for what you do want. Let that be a lesson for the up coming election. I won’t be voting upc provincially or scheer’s cpc federaly. Im voting for what I want.
commented 2019-02-12 19:58:04 -0500
Kenny is proving himself to not be a Conservative at all.

Just as there may not be too much difference between Scheer and Trudeau, it appears there will be little difference between Kenny and Notley as well.