Saudi Oil Minister

[boarderbloke]

Those job loses in Alberta and Saskatchewan are not just Albertans, they are also bluenosers, and New Brunswickers, Newfies and Ontarians. PM Selfie is too partisan realize this.

[Hamloc]

It was Peter Lougheed who turn the taps off on the oil sands to get a slightly better deal before signing the NEP back in 1980. It was Brian Mulroney who got rid of the last vestiges of the NEP 7 years later after oil prices had collapsed.

[grassfarmer]

Lots of mis-directed anger towards Eastern Canada, Trudeau and Notley over oil prices. Would have been no different with PC Government in AB and federally. We are high cost oil producers in the global playing field so naturally are suffering the most in a global turndown. Even if pipelines were built tomorrow we would still be among the highest cost oil producers selling into a depressed world market.

[fjlip]

Unless the pipelines are FREE? No cost to Oil Co's, just to the taxpayer.

[grassfarmer]

I'm no expert on this but transportation is not the main issue here. When we talk cost of production, getting the oil out of the ground Canada is really expensive compared to many other areas of the world. Tar sands and fracking shales are not cheap processes. Contrast to the middle east where they can pull it out of the ground for $10 a barrel.
All the focus on pipelines about getting the product to tide water is to introduce an element of competition for our oil by accessing markets other than the US just as we thought we should do to get our beef exported off this continent after BSE. Problem is oil price is low world wide so ours will still have difficulty competing even with free (to the oil companies) pipelines to get it to tide water.

[BFW]

With a pipeline east Grassfarmer but I Believe imported oil on the east cost trades a fair bit higher than Canadian companies get for their oil here because of lack of pipeline capacity. You are correct, low price is the real issue for oil industry here but more pipeline capacity is required to even have a chance of any long term success. Sounds familiar doesn't it?

[Oliver88]

With a pipeline east Grassfarmer but I Believe imported oil on the east cost trades a fair bit higher than Canadian companies get for their oil here because of lack of pipeline capacity. You are correct, low price is the real issue for oil industry here but more pipeline capacity is required to even have a chance of any long term success. Sounds familiar doesn't it?

Good point.
Brent Crude pricing is significantly more than land locked oil.

Access to the railways for grain farmers is another benefit to oil pipelines.

[Hamloc]

What is the price of imported oil landed at port? There is obviously a freight cost from Saudi Arabia to Canada, any ideas?

[BFW]

Saw something in the paper saying imported oil cost on average $17/barrel more than what was being produced in western Canada. Assuming same spec.

[farming101]

CITD lists December crude imports for S Arabia at about $52/bbl

[mustardman]

Ocean freight is Very cheap right now.
Wheat from Vancouver into China is about $12/tonne U.S.
That's only $ 5 /tonne more than I pay to haul 50 miles !!

[grassfarmer]

Ocean freight is Very cheap right now.
Wheat from Vancouver into China is about $12/tonne U.S.
That's only $ 5 /tonne more than I pay to haul 50 miles !!

Not according to this story on oil tanker shipping.

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