B.C. Economist Slams Bitumen Scam

She's even using the "F" word, as in fraud.   And Robyn Allan says the fraud, on the Canadian people, is being perpetrated by the federal and provincial governments, Big Oil, Enbridge, a rightwing think tank, a major bank and, of course, their media waterboys.

In her latest critique Allan makes several points:

. Bitumen is a "junk" crude which, because it requires upgrading and complex refining and considerable transportation costs, "has always sold at a discount" that has "not changed significantly" and the change "isn't related to pipeline capacity."

. While major oil companies and their supporters complain they are suffering greatly due to the price discount, they are mostly integrated companies involved in upgrading and refining, and are boasting to their shareholders that their profit margins from processing operations have soared due to the cheaper Canadian crude they process.

. Western Canadian consumers were gouged to the tune of roughly 14 cents a litre in 2012 because these discount prices are not passed on at the gasoline pumps.

. The "supply glut" at the U.S. industry hub of Cushing, Okla., was "largely industry induced" and will be sorted out within the next "year or so" - long before the proposed Keystone XL pipeline and the Enbridge and Kinder Morgan projects could ever be completed.

Enbridge issued a statement last year challenging a previous Allan critique suggesting Northern Gateway would harm the Canadian economy.

University of Calgary economists, the sort that Enbridge likes best, can dispute Allan's claims, or at least some of them.  Then again they only have to preach to the choir.

What none of the major parties in Ottawa or the government of Alberta or the Fraser Institute or Enbridge or Big Oil can refute is the existence of a global carbon bubble out of which only the cleanest, low-carbon fossil fuels are expected to remain viable.  That rules out the highest-carbon petroleum option, Athabasca bitumen.  Alberta premier Redford has already lamented the bitumen "bubble" that has plunged her province into debt and deficits.   Harper minion, Joe Oliver, has carelessly muttered the word "stranded" in the context of Athabasca bitumen.

These types know that time is not on their side and, unless they get those pipelines built and tanker ports running ASAP, it's quite likely they never will be.