Re: Alberta revises royalty-in-kind, New Hardisty terminal Enbridge’s second largest, October 20, 2009
The Alberta government is planning to take up to 75,000 barrels per day of unprocessed bitumen in lieu of royalties and have these upgraded in Alberta. It has issued a call for proposals to build the plant that would upgrade this bitumen into synthetic crude oil. Meanwhile, Enbridge is building a pipeline and additional facilities to ship up to 450,000 barrels per day of bitumen to Wisconsin. Similarly, TransCanada is building a pipeline to carry 500,000 barrels of bitumen to southern markets each day. The government’s effort to get added-value for our bitumen is a drop in the bucket compared to the value we will forego if we allow the export of nearly 1 million barrels of bitumen per day for upgrading and refining in the USA.
Upgrading this bitumen in Alberta could add over $20 billion a year to our economy. Construction of the required upgrading plants would provide thousands of jobs and billions to our economy.
Bitumen exports must be capped at the current volume. The Alberta Bitumen Upgrading Company should be established. This company would be modelled along the lines of the Alberta Gas Trunk Line Company established by the Social Credit government in 1954. Bitumen producing companies that don’t have the expertise, capital or desire to be in the upgrading business would be invited to invest in this company. Albertans would be given first choice to buy shares. The Alberta government would also be a shareholder.
Alberta Social Credit Party
28 Silver Mead Bay NW
Calgary, AB T3B 3W6