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Maybe "deal" is too generous a term. Let's call it Donald Trump's pipedream.
Contenders for the Republican presidential nomination all favour the Keystone XL pipeline project now on hold thanks to president Obama. Trump, naturally, has gotten aboard only with a few extra stipulations.
“I want 25 per cent of the deal for the United States. They’re going to make a fortune,” he declared in Muscatine, Iowa on Sunday. On Saturday, he said he would ask for “25 per cent of the profits forever.”
Trump, campaigning as an economic nationalist, said he wants the pipeline approved. But he said TransCanada should not be allowed to send Canadian oil through American land—“through farmland and through cities and wherever the hell they’re going” — without paying a hefty price.
“When they do this pipeline, it’s going to be a very profitable thing and it’s really Canada oil coming down — so it’s not — I like Canada, I want these people to be happy, but I want the developers of the pipeline to give the United States a big, big chunk of the profits or even ownership rights, like I do in business. That’s what I do,” he said.
Hmm, a "big chunk of the profits or even ownership rights" - I'll bet that has Christy Clark's ears buzzing and probably a couple of Quebec mayors to boot.
Poor Enbridge, poor Kinder Morgan.
Oh yeah, Trump added that he's not all the crazy about taking Canadian dilbit but he went out of his way to add that he really, really likes us. "I love Canada, by the way." Wait a minute, does that mean we're not getting our wall?
The US (or Canada) can't impinge on future profits of a corporation, because of ISDS in NAFTA, TPP etc. That's why TransCanada is suing the US for $15 billion.
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ReplyDeleteI don't think that sort of thing troubles the Orangutan very much, Hugh. Of course, Trump thinks the revenues from these pipelines line Canadian pockets. Once he gets that cleared up, he'll be fine with it.
Who owns TransCanada now? It used to be a Canadian Company. So did the National Hockey League. Is Trump railing about a company that American rich guys now control?
ReplyDeleteNon Canadians some of them American own 30% of TransCanada. Non Canadians , especially the Koch bros own 70% of the tar sands. A bad case of headupassitis for Trump again.
ReplyDeleteThe energy east problem could be easily solved by Alberta. Just build an upgrader and refinery in Alberta with Albertan money. Alberta could have cleaner oil to ship and keep the filth out of Quebec and New Brunswick. Too bad there's not enough money, imagination or ambition in the oil patch.
ReplyDelete@ Rumley - these are hard days to be a Fossil Fueler. Renewables are closing in for the kill. Carbon pricing is approaching from the other flank. The Attorney General of New York is investigating them for misleading shareholders and investors on the real value of their booked energy reserves. Talk abounds of "stranded assets" and, when it does, high carbon fossil fuels such as bitumen are squarely in the gun sights.
ReplyDeleteThat leaves Big Oil facing a tough rearguard fight. Investing the massive capital to build refineries in Alberta capable of processing 300,000 barrels of bitumen daily isn't particularly attractive given all the downside risks.