Quote:
Originally Posted by DiracSpike
Saudi Oil sells for $80 right now and Canadian oil sells for $20. So right off the bat you're on shaky ground here.
And not sure what the point of the social license argument is but I'd say the fact that easterners are fine buying oil from Algeria Saudi and Venezuela over ours means that it doesn't exist. Or they're jsut incredibly stupid.
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How much added cost is the refining process? How much capilization cost is required to build the upgrading process? What is the incremental increase in profits based on the export terminal vs upgrading and reselling a lower quality oil. Would they even have a suffiecient market?
Sure it has a huge differential right now, but that didn't exist even 6 months ago. Will that differential last? If they start purchasing what affect will that have on price longer term?
My point is that it is a much more complex decision to make than, Saudi sucks and we should buy Alberta Oil. The last Trudeau tried to force the country to support itself in regards to Oil "in the interest of Canada", and that didn't turn out so well.
As for the social liscense it is just pointing out that the argument against Saudi Oil is based on their lack of social standards, you know, their social liscense. And yet the same group of people decry Notely using the term or that it doesn't exist.
As for "easterners" being fine with Saudi oil, that is just more divisive East vs West bullcrap. We live in a market society where profit drives almost every decision. This isn't Joe Blow New Brunswicker making the decision to buy Saudi Oil, it is Irving. The average consumer is only concerned about price. Their decision might change now based on the differential, but EE was never going to be a made in Canada solution, it was going to make them loads of money with their export terminal.