Thread by @sunnshiiny

The problem with Ms Krause’s statement is that we learned a backlog of bitumen that Canadian developers create produces humongous profits for American refinery owners.

https://twitter.com/fairquestions/status/1394873577241923585

When Rachel Notley put a temporary limit on oil sands production, the price of oil jumped immediately.

By maintaining current production levels, and a bottlenecked transport system, US producers can manipulate the price they pay for Canadian product, & thus, the royalty rates.

After its refined, oil sands is sold at the same price as Brent Oil standard price back to Canadians and across the globe.

Resulting in astronomical profits for American upstream owners and shareholders.

At the expense of Albertans and the expense of Canadian fuel consumers.

No wonder Kenney cancelled the provincial quota imposed on developers. And cancelled the train transportation contract that would have made Alberta a decent profit in return on investment.

Mr. Kenney and this commission may have just got caught in a industry cabal scheme.

🤣😂😅😆😂😂🤣😂😂😅😆😅😂🤣😂😅😆😅😂🤣😂😅😆😂😂🤣😂😅😆😂🤣😂😅😆😅😂🤣😂😅😆😅😂🤣😂😅😆😅😂🤣😂😅😆😅😂🤣😂😅😆😅😂🤣😂😅😆😅😂🤣😂😅😆😂🤣

I can’t stop laughing! This is too perfect!

Vivian Krause attempted to spin a new narrative and gets caught red handed spilling the beans!

That’s why the report is unpublishable. Because upstream producers have been conspiring to scam Albertans for decades! Threatening to withdraw from oil sands if royalties are raised.

Whining about lack of pipelines. But at the same time covertly suppressing pipeline construction and blaming environmental groups and indigenous communities for the stalls and delays.

If this turns out to be true I’m going to split my sides open from laughing so hard.

My god! The report has been extended several times. No one knows it’s contents.

The author continues to rake in revenue. And a huge oil industry scam in modern times stays quiet.

Jason Kenney, rigid ideologue and defender of free markets did a 180 degree about face & suggested temporary production cuts in 2018.

Notley planned to purchase rail cars & engines to move product to increase prices.

Intervention despite a free market.
cbc.ca/news/canada/ed…

I remember when Notley announced a temporary limit on oil sands development.

cbc.ca/player/play/13…

After some back and forth between the government and opposition, Jason Kenney actually conceded a cut in production was warranted.

Odd since this clearly was a temporary abandonment of his rigid ideology.

Kenney approved socialist intervention.
cbc.ca/news/canada/ed…

Notley made the cuts. And the price of Alberta product literally jumped 70% overnight. By March 2019, just 4 months later, the price had risen over 35% from the year before and within a $10 difference between WTI and WCS.

Ahh, but then we had an election in April 2019 and UCP took over.

Never able to take personal or professional responsibility, UCP blamed NDP for the low oil prices.

But industry giants and smaller independent local producers had negotiated for low royalties, low tax & free markets.

Documented here: cbc.ca/news/canada/ca…

Kenney removed NDP imposed production cuts in December 2020. But he had cancelled the increased rail capacity shortly after winning the provincial election. Costing Albertans $2B in penalties and a loss of revenue.

calgaryherald.com/opinion/column…

Ask yourself why.

There is every reason to believe the additional rail car capacity would have narrowed the price between WTI and WCS even further. The more Alberta can transport to customers, the more valuable the resources and more royalties collected.

I wonder if anyone has determined how much was paid by those 16 large companies that were forced to reduce production and increase the royalty price per barrel for taking Alberta natural resources?

I wonder if it’s close to $4.7B collective revenue that those companies lost?

Many of them chose to hightail it to US locations for their head offices. When?

We remember it as shortly after the tax breaks Kenney gave large oil industry producers.

Many thought it was because the industry was dying. It’s not and won’t for awhile.

The industry giants probably remember it as shortly after Trump signed a 2 year trade deal with China in October 2019, where CCP committed to buying $52B in fossil fuels, namely oil and gas.

There’s an international jurisdictional law that location of the main office determines the nation who owns the product. Head office on Canadian side of border, is Canadian product. Head office state side, it’s American product once it crosses the border. Tricky.

$52B is not chump change. That’s a lot of product. Which when said product shipped across the border the head offices located in US can sell that product as American in origin.

So what happened at the beginning of the pandemic to oil production? Alberta producers were literally paying others to take oil sands and store it. Price per barrel was less than $0.

Imagine the profits on resources that royalties not only didn’t factor, but Albertans actually paid for industry to take possession because there was too much oil being produced.

Did UCP cut production? Nope. They gave away bitumen for weeks. Somebody’s made a pretty penny.

The industry continues to make record profits from Alberta resources.

Alberta was turned into a Petro State (province) by successive con govts long ago. Diversification of Canada’s economy has blinded Albertans to suppression of democracy.

Corruption in Petro States is common.

It’s always been the oil industry ensuring refining and pipelines remain unattainable to Canadians.

That’s how they make record profits on resources that were deemed too costly to turn a respectable profit.

That’s how they keep Albertans well paid indentured servants to the industry. That why Alberta has been a one party government for 81 of the last 85 years.

The Matt’s are in a tizzy. Trying distraction and disinformation to get you to forget what Vivian Krause just revealed: the landlock of Alberta fossil fuels industry has meant trillions in profits for American and other foreign investors. At our expense, of course.

Conservatives are corrupt self serving back stabbers. Always have been since Lougheed left. Oil is a lucrative business. Even being a Petro State province has made most wealthier and better paid than people in any other province.

Was it worth it? What did we reap by allowing conservatives to sell our resources and our futures out from under us? An annual trip to Mexico, expensive vehicles and camping RVs.

What does it mean when a province gains the world’s riches but loses its population’s souls?

That’s a question for the Dominionist evangelicals who put their faith in a corrupt party, a contemptible corrupt man, a greedy and abusive industry and lost their souls to avarice and delusion.

Alberta... So sad you’ve got to cry and so absurd you’ve got to laugh.

@threadreaderapp please compile