[Newsbot]

Title: Alberta announces $500M royalty credit program to build petrochemical plants
Category: Business
Posted By: DrCaleb
Date: 2016-02-02 07:44:58
Canadian

[DrCaleb]

Fucking NDP. Driving investment and jobs out of the province. Bastards!

[andyt]

Sounds good. But is this really the better strategy than building oil refineries?

[uwish]

petrochemical plant ~ $500M Heavy oil upgrader ~ $8 BILLION

you do the math

[DrCaleb]

uwish uwish:

petrochemical plant ~ $500M Heavy oil upgrader ~ $8 BILLION

you do the math

In addition, most petrochemicals are made on the south coast of the US and shipped back here. Makes sense to value add our petrol before shipping it.

[uwish]

DrCaleb DrCaleb:

Fucking NDP. Driving investment and jobs out of the province. Bastards!

don't let one possible good thing out way the $10's of Billions of dollars driven out by their royalty review that essentially, did NOTHING! Just because they get a checkmark here, doesn't right the wrongs. Just like grading, there is a weighted average and while this is a check for sure, it is no where near the weight of the other X!

[andyt]

DrCaleb DrCaleb:

uwish uwish:

petrochemical plant ~ $500M Heavy oil upgrader ~ $8 BILLION

you do the math

In addition, most petrochemicals are made on the south coast of the US and shipped back here. Makes sense to value add our petrol before shipping it.

Of course. But why does it not make sense to add value to your oil products instead? What we hear about with Alberta is oil, not natural gas.

[DrCaleb]

uwish uwish:

DrCaleb DrCaleb:

Fucking NDP. Driving investment and jobs out of the province. Bastards!

don't let one possible good thing out way the $10's of Billions of dollars driven out by their royalty review that essentially, did NOTHING! Just because they get a checkmark here, doesn't right the wrongs. Just like grading, there is a weighted average and while this is a check for sure, it is no where near the weight of the other X!

People are attributing oil sands investment 'leaving' to the royalty review, when there has been no causal relationship shown. I haven't seen any reports that any investment has left, other than projects getting delayed because low oil prices mean they aren't viable. Same with drilling rigs. But lack of investment is not the same as a company pulling up stakes and leaving.

And having a royalty review on occasion is a prudent move.

http://business.financialpost.com/news/ ... rs-nervous

[DrCaleb]

andyt andyt:

DrCaleb DrCaleb:

uwish uwish:

petrochemical plant ~ $500M Heavy oil upgrader ~ $8 BILLION

you do the math

In addition, most petrochemicals are made on the south coast of the US and shipped back here. Makes sense to value add our petrol before shipping it.

Of course. But why does it not make sense to add value to your oil products instead? What we hear about with Alberta is oil, not natural gas.

That is already in the works.

$1:

An upgrader would convert bitumen into synthetic crude for refining elsewhere. The Sturgeon Refinery will take 79,000 barrels of diluted bitumen per day — most of it supplied by the Alberta government — and make it into ultra low sulphur diesel fuel and other high-value products including diluent, a light hydrocarbon used to dilute bitumen for transport by pipeline, and low-sulphur vacuum gas oil.

“What we do is different than upgrading,” MacGregor said. “We make products that are finished, and they don’t need any intermediate processing. And those products are short in Western Canada. We don’t even supply enough to meet our own demand today, and that’s a situation that’s unlikely to change. And they are also products that are ... in demand by the world.”

http://www.edmontonjournal.com/Sturgeon ... story.html

[martin14]

DrCaleb DrCaleb:

But lack of investment is not the same as a company pulling up stakes and leaving.

Tell that to the guys out of work.

[andyt]

DrCaleb DrCaleb:

andyt andyt:

DrCaleb DrCaleb:

In addition, most petrochemicals are made on the south coast of the US and shipped back here. Makes sense to value add our petrol before shipping it.

Of course. But why does it not make sense to add value to your oil products instead? What we hear about with Alberta is oil, not natural gas.

That is already in the works.

$1:

An upgrader would convert bitumen into synthetic crude for refining elsewhere. The Sturgeon Refinery will take 79,000 barrels of diluted bitumen per day — most of it supplied by the Alberta government — and make it into ultra low sulphur diesel fuel and other high-value products including diluent, a light hydrocarbon used to dilute bitumen for transport by pipeline, and low-sulphur vacuum gas oil.

“What we do is different than upgrading,” MacGregor said. “We make products that are finished, and they don’t need any intermediate processing. And those products are short in Western Canada. We don’t even supply enough to meet our own demand today, and that’s a situation that’s unlikely to change. And they are also products that are ... in demand by the world.”

http://www.edmontonjournal.com/Sturgeon ... story.html

Good stuff. This is what we need, instead of always only focusing on exporting.

How does the Alberta government supply dilbit?

[DrCaleb]

martin14 martin14:

DrCaleb DrCaleb:

But lack of investment is not the same as a company pulling up stakes and leaving.

Tell that to the guys out of work.

The Saudi government isn't taking Rachel's calls.

[DrCaleb]

andyt andyt:

Good stuff. This is what we need, instead of always only focusing on exporting.

How does the Alberta government supply dilbit?

It's part of the last royalty review that Stelmach did. Instead of increasing royalty rates, the GoA would simply take bitumen in kind. So they started building the Northwest Refinery to process the bitumen owed to us as part of the royalty regime.

Added:

http://www.energy.alberta.ca/About_Us/BRIK.asp

[uwish]

DrCaleb DrCaleb:

uwish uwish:

DrCaleb DrCaleb:

Fucking NDP. Driving investment and jobs out of the province. Bastards!

don't let one possible good thing out way the $10's of Billions of dollars driven out by their royalty review that essentially, did NOTHING! Just because they get a checkmark here, doesn't right the wrongs. Just like grading, there is a weighted average and while this is a check for sure, it is no where near the weight of the other X!

People are attributing oil sands investment 'leaving' to the royalty review, when there has been no causal relationship shown. I haven't seen any reports that any investment has left, other than projects getting delayed because low oil prices mean they aren't viable. Same with drilling rigs. But lack of investment is not the same as a company pulling up stakes and leaving.

And having a royalty review on occasion is a prudent move.

http://business.financialpost.com/news/ ... rs-nervous

have a little look at this

http://www.advisor.ca/investments/marke ... rta-189361

It shows data from the last royalty review(s) and how it impacted investment in Alberta's energy sector. Do you really think this time is any different? That was $60 oil and as soon as steady eddy said royalty review massive capital was walked out of AB to our neighbours.

It happens EVERY time someone even hints at royalty review. I am not saying we should never do them ever, however; I work first hand in a industry that shelved projects for a year NOT BECAUSE OF OIL PRICE, but because of the words Royalty Review.

You see heavy oil is a fickle industry, we can't just shut in wells, our projects take 10 years to plan out and we have to build significant infrastructure, that happens when oil is low or high because the outlook on first steam on some of these initiatives is 15 years away.

[DrCaleb]

Good link! Thanks!