Quote:
Originally Posted by Corral
O&G is hardly laissez faire here. If it truly were, the oil sands would be a fraction of its size. Government subsidies royalty breaks and other incentives fueled the boom post 1995 which now faces a transportation problem. True market economics would have factored in the risks but we all know externalities get overlooked when short term thinking is rosy.
Its really the privatize the gains socialize the losses ideology that turns me off. Just look at Fort Mac. For all the money generated up there, that town still looks like the 70s. Reap the wealth and let social and environment costs fall elsewhere. Thats big oil for you.
|
“Privatize the gains”? You do know that the crown receives royalties on every barrel produced in this province, right? Any subsidies and incentives they gave to develop the technology to produce the oil sands have been paid back in multiples, and the vast share of capital expended to grow production to current levels has been private capex by the private companies that are present there. As mentioned by accord share and bond holders have been slaughtered lately while the government collects their nut no matter what. The “public losses private gains” phrase was en vogue when it was actually applicable, when banks in the us made billions making knowingly risky bets and then had the liability paid off by the taxpayer. Now it’s just common leftist parlance to throw that out about any industry they don’t like. Its not at all applicable in this case and if you want to make that argument you’re going to need better evidence than your personal opinion on the decor in fort McMurray.