Official (Alberta) Oil Discussion Thread

[Northendzone]

i have what might be a dumb question, but it is my understanding that Canada produces enough oil to meet our own needs - if that is wrong, then the next question is moot.

what would happen if canda were to keep it's own oil and price it at a level that makes sense?

[bizaro86]

Originally Posted by Northendzone

i have what might be a dumb question, but it is my understanding that Canada produces enough oil to meet our own needs - if that is wrong, then the next question is moot.

what would happen if canda were to keep it's own oil and price it at a level that makes sense?

Roughly, the NEP.

[V]

I'm just flat out shocked that Tinordi has actually latched onto something instead of his snide one post drive-bys.

One unfortunate fact is solar will continue to be a terrible investment for the residential and commercial sectors in Alberta as long as they continue to force the use of bi-directional meters instead of net metering. Fix that and you might have a business case for me to install solar.

[CampbellsTransgressions]

Originally Posted by Bootsy

http://business.financialpost.com/ne...bandoned-wells

These are the kinds of ideas and thinking I wish our government was capable of.

The industry pays an orphan well levy in Alberta.

Saskatchewan are actually asking the federal government to provide an advantage over Alberta by paying to cleanup wells that are rightfully the responsibility of the provincial government.

Never mind how ludicrous the suggestion will come across to the Easterners and BCers that are opposed to the industry for environmental reasons. Talk about exposing a flaw in an already sensitive issue.

Federal money should be spent on public goods and public goods only, with each province roughly receiving a fair share.

[IliketoPuck]

Originally Posted by Tinordi

...if the great recession happened three years earlier.

The peak is in 2005 and decline since then. There is clearly some structural adjustments going on in the mid-2000s and exacerbated by the recessions.

GDP now is higher than 2007 but gasoline demand has not rebounded. Even with low prices.

Why? The answers are around us. Energy efficient and alternative fuel cars. Surging public transit investment and ridership. Dreaded bike lanes. Urbanization.

Needless to say, this trend will be monitored closely.

American consumption of oil steadily declined from 2005 through 2012 (from 20,802 Mbbl/d to 18,490 Mbbl/d). However, demand for oil increased in both 2013 and 2014 to 19,035 Mbbl/d (source: BP statistical review of energy, 2015), and is expected to show an increase of ~500,000 bbl/d to ~19,500 Mbbl/d in 2015 (source: IEA January 2016 Oil Market Report).

I think you should check your numbers. Also, you assume that the majority of the world's population can afford alternative energy solutions.

The trend of alternative fuels and energy efficient cars, houses, etc. are great, for those that can afford them; the vast majority of the world's population can't. Moving out of third world poverty and towards a first world society requires substantial sources of cheap energy. There are very few sources of energy in the world as cheap or as efficient as oil.

China and India are undergoing a massive shift towards modernizing their economies, they also conveniently have combined populations of >2.6Bn people. Demand for energy in those countries is only going to increase, which means continued growth in the demand for oil. Although it would appear that demand for oil in America has also been increasing for the last few years, bike lanes and urbanization be damned.

Needless to say, this trend will be monitored closely.

[Bootsy]

Originally Posted by CampbellsTransgressions

The industry pays an orphan well levy in Alberta.

Saskatchewan are actually asking the federal government to provide an advantage over Alberta by paying to cleanup wells that are rightfully the responsibility of the provincial government.

Never mind how ludicrous the suggestion will come across to the Easterners and BCers that are opposed to the industry for environmental reasons. Talk about exposing a flaw in an already sensitive issue.

Federal money should be spent on public goods and public goods only, with each province roughly receiving a fair share.

Yes industry pays an orphan well levy that will never come close to paying for the amount of work that needs to be completed to abandon these wells.

You're right it is a provincial responsibility and a couple of years ago the AB government spent around 30 million dollars towards it. Industry was actually against government help as you are , however in my opinion orphan wells are a public issue since the government has taken them over , they are now responsible.
I would rather the Feds help out this way than a bailout like the auto industry got. Trudeau prides himself on being environment friendly, well this is good for the environment and it would put many people back to work in a field they already have expertise in.
Its not the perfect idea but I think this line of thinking is what is what our government should be brainstorming.
As for the Easterners and BC, at this point I could give 2 flying F's what they think. I think it's pretty safe to say they've wasted federal money on much worse projects than this.

[polak]

Originally Posted by Reaper

Quiet, Hitler.

Hahahaha. That made me spit my coffee on my shirt.

[peter12]

Sorry, but you can't count the decline from 2005-2007 statistically significant. Those are normal fluctuations - just look at the chart from 2000-2003 and you will see the same trend. The gap from 2007-2009 is extremely significant, and obviously explains why fossil fuel demand has decreased in the US over the past 8 years. It was the recession - commodities always go down during recessions.

[Simon96Taco]

UAE Energy Minister says OPEC is willing to discuss a production cut:

http://www.cnbc.com/2016/02/11/us-markets.html

Not sure if this is very meaningful yet, as "willing to discuss" and "discussing" are two different things. Also, I don't know who he is (or thinks he is) speaking on behalf of when he made these comments.

Nonetheless, the comments did spark a rally and oil pulled back much of today's losses on the news.

[SebC]

Originally Posted by V

One unfortunate fact is solar will continue to be a terrible investment for the residential and commercial sectors in Alberta as long as they continue to force the use of bi-directional meters instead of net metering. Fix that and you might have a business case for me to install solar.

How would net metering be a "fix"?

[FLAMESRULE]

Originally Posted by SebC

How would net metering be a "fix"?

I think it allows you to buy/sell power whenever you want. Eg. power at night is about 3-6x cheaper than during the day. So you'd be able to charge batteries (eg. Tesla) during the night when its way cheaper, utilize batteries and solar during the day (even selling surplus stored power at day market pricing), rinse & repeat.

Transmission and distribution in this province has been criminal. Paying for power lines that are not needed (upwards of 3-4x the transmission capacity of whats needed) all the while getting guaranteed rates of return.

[puckedoff]

Originally Posted by FLAMESRULE

I think it allows you to buy/sell power whenever you want. Eg. power at night is about 3-6x cheaper than during the day. So you'd be able to charge batteries (eg. Tesla) during the night when its way cheaper, utilize batteries and solar during the day (even selling surplus stored power at day market pricing), rinse & repeat.

Transmission and distribution in this province has been criminal. Paying for power lines that are not needed (upwards of 3-4x the transmission capacity of whats needed) all the while getting guaranteed rates of return.

Night solar?

[Locke]

Originally Posted by puckedoff

Night solar?

A big issue for solar energy is the inability to store it and use it when you need it.

A further issue is that solar requires a backup, so you could potentially sell the solar energy that you generate during the day when you're not home and thus not using it, to the grid and then get credit for that sale to use the grid's energy when you need it. Like at night. When you're home. Using electricity.

But the current system doesnt allow this.

[nik-]

Originally Posted by Simon96Taco

UAE Energy Minister says OPEC is willing to discuss a production cut:

http://www.cnbc.com/2016/02/11/us-markets.html

Not sure if this is very meaningful yet, as "willing to discuss" and "discussing" are two different things. Also, I don't know who he is (or thinks he is) speaking on behalf of when he made these comments.

Nonetheless, the comments did spark a rally and oil pulled back much of today's losses on the news.

These ####ers are probably having a grand old time just screwing with the markets and people's livelihoods.

[V]

Originally Posted by SebC

How would net metering be a "fix"?

It reduces the cost to the consumer because they're only paying the tariffs and riders based on their net consumption instead of their full consumption before they sell it back.

Look at your bill. Is even half of it based on consumption? To really make solar worth it for the residential and commercial customer you need to reduce the riders, not just consumption.

[SebC]

Originally Posted by V

It reduces the cost to the consumer because they're only paying the tariffs and riders based on their net consumption instead of their full consumption before they sell it back.

I could potentially get on board with charging/paying different rates based on time of day but doing tariffs and riders on a net basis if those fees don't reflect transmission costs (which would not work on a net basis). I had interpreted net metering as disregarding time-of-day effects, which I feel would create an unfair subsidy.

[stampsx2]

Originally Posted by Simon96Taco

UAE Energy Minister says OPEC is willing to discuss a production cut:

http://www.cnbc.com/2016/02/11/us-markets.html

Not sure if this is very meaningful yet, as "willing to discuss" and "discussing" are two different things. Also, I don't know who he is (or thinks he is) speaking on behalf of when he made these comments.

Nonetheless, the comments did spark a rally and oil pulled back much of today's losses on the news.

And it still closed at $26. Starting to wonder if oil will be free soon.

[stampsx2]

What's wrong with this upside down country lately.

Don't know how to do fancy embedded script

Where is the political outrage over oil imports from rogue nations with inferior environmental records and deplorable behaviours toward women, dissidents and minorities

http://calgaryherald.com/storyline/a...an-ports-daily

[rubecube]

Originally Posted by stampsx2

What's wrong with this upside down country lately.

Don't know how to do fancy embedded script

Where is the political outrage over oil imports from rogue nations with inferior environmental records and deplorable behaviours toward women, dissidents and minorities

http://calgaryherald.com/storyline/a...an-ports-daily

Okay but is it not private industries that are importing oil from these countries because it's cheaper to do so? How is that on environmentalists and not just a function of capitalism? How exactly are you going to prevent this practice without implementing some pretty severe protectionist policies or nationalizing the energy industry?

[Fuzz]

They are doing it because that is where they can get it from. If the environmentalists wouldn't block pipelines, it would be cheaper to buy Canadian oil as it sells at a big discount.