Kinder Morgan: the business case

[Hoid]

Scenario: you own a pipeline transporting X amount of bitumen to market. This stuff is not very popular or useful and not very many places can even handle it and you cannot get much of a price for it.

So you decide that you will triple or quadruple your investment because by increasing the supply several hundred percent you will increase the demand and increase the price of it.

The business case is empty.

Kinder Morgan is looking to get bought out and the Canadian and Alberta governments are facilitating them because they need the votes.

It is the typical government bailout of the typical corporate welfare project.

As it makes no economic sense it makes tremendous political sense.

 

[petros]

You have everything to learn about "batch" shipping.

BTW count SK in for $600M of investment.

 

[Hoid]

^Ignore Lister who says no dilbit has ever been piped into BC

expert opinions always welcome.

 

[petros]

^fact hater

the Trans Mountain pipeline system (TMPL) is the only pipeline system in North America that transports both crude oil and refined products to the west coast. TMPL moves product from Edmonton, Alberta, to marketing terminals and refineries in the central British Columbia region, the Greater Vancouver area and the Puget Sound area in Washington state, as well as to other markets such as California, the U.S. Gulf Coast and overseas through the Westridge marine terminal located in Burnaby, British Columbia. Only crude oil and condensates are shipped into the United States.

https://www.kindermorgan.com/business/canada/transmountain.aspx

 

[Durry]

The ONLY reason we now have to put taxpayer money into the KM p/l is because of the Liberal incompetence.

KM got the approvals, they have the money to build the line, so it should be a done deal at this point.

But the Libs allowed the protesters to high jack the process.

This tax money that is going to KM is clearly the result of the Liberals incompetence

 

[Hoid]

Oil down today as rig counts increase and shale extraction ramps up.

Poor old bitumen - made obsolete by shale fracking

 

[Durry]

Bitumen is in high demand for highway paving, roof construction etc etc.

This cannot be done with light oil.

 

[petros]

The ONLY reason we now have to put taxpayer money into the KM p/l is because of the Liberal incompetence.

KM got the approvals, they have the money to build the line, so it should be a done deal at this point.

But the Libs allowed the protesters to high jack the process.

This tax money that is going to KM is clearly the result of the Liberals incompetence

Making it a partnership (Crown Assets) between the Feds, AB & SK makes it completely unstoppable.

 

[Twin_Moose]

The ONLY reason we now have to put taxpayer money into the KM p/l is because of the Liberal incompetence.

KM got the approvals, they have the money to build the line, so it should be a done deal at this point.

But the Libs allowed the protesters to high jack the process.

This tax money that is going to KM is clearly the result of the Liberals incompetence

Let's not forget the B.C. Libs (Clark) opened the door to the protests so she can get a bigger piece of the pie (Royalties) from Alta. The door she opened ended up backfiring on her with the Judicial appeal on whether or not enough First Canadian consultation took place even on her own approved projects setting back the liquid gas projects.

 

[Durry]

Making it a partnership (Crown Assets) between the Feds, AB & SK makes it completely unstoppable.

Governments should NOT get in the business of building pipelines, this is for private businesses

 

[petros]

Which of these oil sands products did you use today?

 

[Hoid]

Let's not forget the B.C. Libs (Clark) opened the door to the protests so she can get a bigger piece of the pie (Royalties) from Alta. The door she opened ended up backfiring on her with the Judicial appeal on whether or not enough First Canadian consultation took place even on her own approved projects setting back the liquid gas projects.

Yes it is good news for the pipeline supporters that First Nations have already received the legal standing in BC that they are seeking at the Supreme Court right now for this project.

A mere 14 appeals to go and Canada can go back to ignoring Indians again.

 

[captain morgan]

RE: OP

There is a strong business case to be made in applying an eco-tax, carbon tax and recovery of lost revenues by western oil producers (via AB< SK & MB gvts) on burnaby and the BC provincial gvt.

Looks like that bbl of oil could get 30% more expensive in Burnaby.