Quote:
Originally Posted by Frequitude
Production cuts should have been prorated based on net heavy sales so as not to punish the integrateds who picked the right path. This is the right being forced by government to bail out the wrong and that is not a good signal for attracting capital investment in the future.
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Maybe for locally refined product but anything shipped out is subsidized by low pipeline tolls. In a free market the cost of each transportation option would be roughly equal but pipelines are regulated and tolls set to generate a reasonable rate of return. So everyone pays a premium when pipeline is empty and gets discounted rates when they are full so it’s reasonable that everyone should also take the hit when the pipeline gets overfilled.
https://www.neb-one.gc.ca/bts/whwr/r...ltrff-eng.html