‘It could be a win-win-win situation’

Thomas Mulcair makes his pitch for resource development.

Mulcair told reporters the increasing supply of oil in the U.S., combined with soft demand, is already having an impact on the Canadian energy industry. He said while Eastern consumers pay higher prices for oil, producers in Western Canada are hit by the price differential — the discounted price they must accept for their crude as a result of surging production and jam-packed pipeline capacity in the U.S.

“It’s in the interests of everyone to try to get the best possible price for our natural resources, to add the jobs here,” Mulcair said at an NDP rally at a nightclub on 17th Avenue S.W. He said focusing on shipping oil from Western Canada to central and eastern provinces, and processing it domestically, could be a solution and a nation-building project on par with railroad construction in the 1800s. “It could be a win-win-win situation.”

The IEA report is here.




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‘It could be a win-win-win situation’

  1. Maybe we can call it the National Energy Policy part 2?

    • Oh come on. Give me at least a *chance* to have someone other than a conservative elected here.

      • Yeah. Didn’t think about that.

    • This proposal is nothing like the NEP. The thing Albertans were bitching and moaning about was that Trudeau decreed that Canadian oil be sold to Canadians at below-market prices. It appears to be a way to control the high inflation of the time, which was driven by oil supply shocks.

      Of course, the real problem was that the price of oil crashed in the mid-1980s (same with gold) and the resource welfare checks disappeared… Then Albertans started complaining about the GDP they lost because of lower oil prices.

      This time around, oil only needs to stay below $80/barrel to shut down a lot of bitumen sands production. Whether Albertans ship their “ethical oil” east or not, they will only have themselves to blame (same as last time, actually…)

      • It was just a poor joke.

  2. They built railways in the 19th century. Power and phone lines, bridges and highways in the 20th. The visionary 21st century technology is broadband internet (wired and wireless.) Under Harper, Canada has fallen to the bottom of the developed world in this capacity. The opposition should be talking about this much more than dirty energy.

  3. Oh Tommy Boy, what happened to Dutch Disease? I thought the whole reason we needed to shutdown the oilsands was because profitable businesses in Western Canada make Eastern Canada’s rust-belt noncompetitive by driving up the value of the Loonie? Wasn’t that entire premise of his ill-informed rant? And according to the Greenie’s shouldn’t all of our manufacturing base be running on Unicorn farts and and fairy dust in 6 months anyway? Beardo doesn’t have a clue what he’s talking about.

    • Despite Mr. Oemn’s deliberate misinformation campaign, a more deailed plan by the NDP would be useful.

  4. Regardless of whether the Keystone or the Northern Gateway pipeline is built, the significant price discount on Alberta oil sands products will be permanent. When you have just one customer and that customer can buy from anywhere in the world, you will be squeezed. The energy supply situation has also changed so dramatically in the last decade that high prices for energy are now considered low probability events.

    Meanwhile, Canada still imports 40% of the oil it uses domestically.There is no current government strategy to exploit this price difference. It’s the old “Hewers of wood, drawers of water” meme at work.

    Canada has to put a price on carbon because the rest of the world is doing just that. If we don’t, then our customers will do it for us, because the dirty oil discount means a lower price for them.

    Canada desperately needs a National Energy Strategy, and NOT a National Energy Program Part II. I lived in Calgary during the NEP and that was real ugly. One out of 3 homes that changed ownership in Calgary in 1985 was a foreclosure. Home prices dropped by 25% between 1981 and 1986.

    Now someone explain to me how it will be different this time.

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