Hi, my name is D and this is my writings on subjects. I'm no rapscallion or anything at all. If you want to you can read my writings on subjects if you have free time. If you want to argue with me or call me names then please comment. Negative feedback is very welcome...I love dat shit. Me? I'm not even a noun, I'm a fucking verb, dude.

Thursday, February 9, 2012

The Pros and Cons of Canada's Crude Oil Sands

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(Note: I am not an expert and haven't looked into it all that much, the following is partly hypothetical in nature...though if something written here interests you please feel free to look into it further)

The Facts

-Canadian oil companies have pulled out a bunch of cold thick tar mixed with sand and clay from the ground.

-It is either too costly or no refinery in Canada has the tech, equipment, or experts in order to refine it into useable fuel. Thus, they want to move it to refineries in either Texas, China, or somewhere else.

-Gas prices in Canada have been on the rise, reaching absurdly high levels (http://www.neb-one.gc.ca/clf-nsi/rnrgynfmtn/prcng/cndnnrgprcngtrndfct2011/mg/fg02-eng.jpg)

-Trans Canada Corp's (and other oil companies) stock price has skyrocketed over the last ten years (http://www.transcanada.com/investorcentre.html)


Canada is having issues refining the thick crude tar and wants to ship it somewhere to someone who can get the job done. The first choice seems to have been Libya. Canada had been doing a lot of business with Gaddafi over the last few decades including almost building a huge prison to help him lock up all the "rebels" (source). In fact an employee of the company (SNC Lavalin) who had the contract to build the prison was recently caught trying to smuggle Gaddafi's son into Mexico (source). Canadian company Suncor was well established in Libya prior to the uprising,

"In his recent visit to Tripoli, [a Canadian Politician] was accompanied by an executive from Suncor, Canada’s largest oil and gas company. Before the uprising, Suncor was very active in Libya, producing an estimated 50,000 barrels of oil per day. Concerns about security and whether or not the NTC will honour the contracts Suncor had signed with Gadhafi have delayed its return." (source)

Now that Libya has overthrown Gaddafi's 42-year dictatorship, Canadian oil companies seem to have shifted their eyes to Texas. Trans Canada Corp wants to build the Keystone XL pipeline from Calgary to Texas which many of you have probably heard about (source).

It seems the Americans have the XL pipeline on hold, and Canada wants to ship the stuff to China instead (source). This will be its final destination anyway when it's finally refined (no Western people will get this oil) so why the hell not.

Who will Benefit?

-Canadian oil company executives (TransCan, Suncor, Royal Shell, etc.) and it's shareholders will benefit greatly (billions)

-China will satisfy a small percentage of it's insane energy needs.

-Possibly Texas oil tycoons...if it gets refined there.

-Regular folks who hold stock in the oil companies will get a tiny little bit of money (or they will rig it with insider trading and regular folks won't gain from holding stock either)

Who will NOT Benefit?

-People and businesses who consume oil (i.e. everyone) will still be taxed enormous amounts and charged ridiculous prices at the pumps...which will have a branch off effect to almost ALL limbs of the economy and keep the recession as strong as ever. The gas racket is too profitable to ever be curbed (unless there's some sort of massive objection to it...like a Boston Fuel Party or something). Gas prices will never fall no matter how much oil reserves or production Canada has, it's far too profitable a scheme.

-The ecological effects are very negative. I don't think we'll see a substantial change in our lifetimes but the burning of filthy fuel and the release of emissions into the atmosphere will cause major problems down the line (holes in the ozone layer are bad...our protective shield against the sun's radiation is important and fucking that up will be bad). Humans are basically a wort-like parasitical growth on the planet which eat away at it like a bad fungus, and I think we do have the capacity to destroy our host body (earth) in multiple ways (nuclear bombs, pollution, etc.).

-That bum Gadhafi, thankfully he will not benefit because he cannot be involved in this oil venture any longer...because that bitch-ass is dead.

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