Monday, May 20

Energy

Keystone-XL, the Alberta Petroleum Marketing Commission and the Borrowers
9Apr By Bob AscahNo Comments
Agencies, Credit Ratings, Energy, Energy, Government Finances, Opinion/Research

Keystone-XL, the Alberta Petroleum Marketing Commission and the Borrowers

At the end of March, the Alberta cabinet passed Order in Council 104/2020 which authorized the “President of Treasury Board and Minister of Finance to make advances to or purchase securities of the Alberta Petroleum Marketing Commission.” In addition, the Minister was given the authority to raise:  “up to $2 000 000 000, by the issue and sale from time to time of notes, bonds, debentures or interest-bearing or non-interest-bearing treasury bills issued by the Crown in right of Alberta or any other securities under which the Crown in right of Alberta is the debtor (collectively referred to hereafter as “Government securities”) for the purpose of making advances to or purchasing securities of the Alberta Petroleum Marketing Commission in respect of the development of ...
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Keystone XL- Some Questions- Analysis and Opinion
2Apr By Bob AscahNo Comments
Energy, Energy

Keystone XL- Some Questions- Analysis and Opinion

  On Tuesday 31 March, Premier Jason Kenney announced the province was making a $1.5 billion investment to “kick-start” the Keystone X-L pipeline owned by TC Pipelines (formerly TransCanada Corporation-TRP-TSX). Calling Albertans “resilient,” this “bold move” was deemed necessary to “ensure a future for our largest industry.” The Premier, in his brief announcement, equated jobs and the economy with pipelines. Noting that the “world needs a reliable, democratic source of energy,” Kenney elaborated on a theme popularized by Stephen Harper and Ezra Levant known as “ethical oil.” Drawing a line between Alberta’s vast oilsands- the biggest resource play in any democracy- and the XL pipeline to get Alberta’s bitumen to market- this investment will immediately create 7,000 jobs, according to Alb...
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Teck withdraws from Frontier
1Mar By Bob AscahNo Comments
Energy, Energy, Environment, Investment, Politics

Teck withdraws from Frontier

Teck's withdrawal signifies a major turning point in the struggle between forces opposing a fundamental shift in the use of fossil fuels and governments and industries resisting a transition. The company's signalling that Teck would have to write off $1.l billion of its spending on the Frontier project, foreshadowed the difficult corporate decision. The immediate political fallout: in Ottawa a sigh of relief. In Alberta: instant anger but also a slow realization, a coming to terms that the "last boom" was indeed the last boom. It is now time for the adults in the room to come to terms with a new tomorrow. It will be especially painful for the Kenney government which had placed so much attention on the project, demanding "Ottawa" approve the project. But the tone was irreleva...
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Teck-Frontier -Opinion
12Feb By Bob AscahNo Comments
Energy, Energy, Opinion/Research

Teck-Frontier -Opinion

There are alternatives to Teck-Frontier I have not witnessed this level of political intemperance in Alberta since I was a graduate student at the University of Alberta in 1980. I am alarmed and deeply disturbed with the nasty rhetoric that has been displayed recently by the Alberta government – notably the statement by Jason Nixon, the Environment and Parks Minister. At issue is the impending decision by the federal government on the Teck-Frontier project. Proponents of the project stress the project will create 7,000 jobs during construction and up to 2,500 workers during operation. The project, which has been under review for ten years, is estimated to deliver $70 billion in taxes over 40 years of production and billions of dollars in spin off activity. There is no doubt that it ...
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Syncrude Royalties- Hyndman’s papers
3Feb By Bob AscahNo Comments
Energy, Energy, Fiscal History

Syncrude Royalties- Hyndman’s papers

In the mid-1970s, major efforts were made by the Alberta government to support the expansion of oilsands production. Up until this time, Great Canadian Oil Sands (GCOS), operated by Sunoco, was the only source of commercial bitumen. With the rapid increase of oil prices in 1973, the provincial government encouraged the development of a consortium involving private and public funds. Construction began in 1973 and production commenced in 1978. Between February 1975 to March 1980, the Alberta government had cumulatively advanced $281.8 million to the project of a total cost of $2.875 billion. Prior to 10 March 1980, the Province sold some of its interest to Alberta Energy Company for $54.9 million and had received cash receipts of $48.1 million from the sale of its entitlement of synthet...
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Environmental Liabilities-Part 2 AER Bombshell
6Nov By Bob AscahNo Comments
Energy, Environment, Opinion/Research

Environmental Liabilities-Part 2 AER Bombshell

Originally posted on 5 November 2018 On Thursday, 2 November 2018 a startling Power Point presentation made by the Vice-President, Liabilities of the Alberta Energy Regulator [Go to National Observer] was released under Alberta's Freedom of  Information and Protection of Privacy Act.  The path-breaking investigation was undertaken by staff at the National Observer, Toronto Star, StarMetro Calgary, and Global News. Find the full Powerpoint presentation here. AER-FEB 28-wadsworth-liability-260 BILLION (1)   Mr. Wadworth (pictured) worked at the Bruce Nuclear power plant in Ontario prior to his taking the VP's job at the AER.   Mr. Wadsworth is a graduate of Royal Military College.  In 2017, according to AER's disclosure under the Public Sector Compensation Transparency A...
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Environmental Liabilities Part 1- Exxon-Mobil
6Nov By Bob AscahNo Comments
Energy, Environment

Environmental Liabilities Part 1- Exxon-Mobil

Originally posted 5 November 2018 Two major stories hit the wire this past week  spotlighting the emerging realization that financial markets do care about the scale of environmental liabilities of energy companies. In this post the lawsuit filed  by New York State's Attorney General is examined.  In Part 2, the story about estimated environmental liabilities reported by the Alberta Energy Regulator to industry in a private meeting in February 2018 is explored. On 24 October the Attorney General of the State of New York, Barbara Underwood, brought a lawsuit against Exxon-Mobil. The lawsuit alleges ExxonMobil "fraudulently, systematically and repeatedly has deceived investors about the impact that future climate change regulations could have on the company's assets and value."New York...
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Pressure reaching boiling point over Kinder Morgan project
10Apr By albertarecessionwatchNo Comments
Energy

Pressure reaching boiling point over Kinder Morgan project

Originally posted 10 April 2018 Political agendas- staying in power and getting re-elected Are environmental groups under undue influence of foreign players? Possible Solution - feds exercising its jurisdiction over marine activities? Canada's oil and gas industry and financial community and their media allies have ramped up pressure on politicians in Victoria, Ottawa, and Edmonton to reach a deal. Capital hates regulatory uncertainty and Kinder Morgan's board has finally said "enough is enough."  The parent company of Kinder Morgan Canada is based in Texas and its Texas roots have been used to bolster opposition to the pipeline. (more…)
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CAPP’s Position- Analysis and Opinion
12Feb By albertarecessionwatchNo Comments
Energy, Opinion/Research, Uncategorized

CAPP’s Position- Analysis and Opinion

Originally posted on 12 February 2018 On Wednesday 7 February, Tim McMillan, president of the Canadian Association of Petroleum Producers (CAPP) spoke to the Edmonton Chamber of Commerce. The CAPP head spoke optimistically about  growing demand for oil and natural gas, based largely on International Energy Agency forecasts. It was a "terrific outlook" with Canada being perceived as a "supplier of choice."  But dangers lie ahead, according to the CAPP head. From: The Globe and Mail, Wednesday 7 February 2018 A grainy audio of his talk (with some audience comments) and question and answer is available here. (more…)
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