{"id":7208,"date":"2015-04-10T06:03:21","date_gmt":"2015-04-10T11:03:21","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7208"},"modified":"2015-04-10T06:03:21","modified_gmt":"2015-04-10T11:03:21","slug":"harpers-folly-canada-losing-30-billionyear-on-tar-sands-oil","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7208","title":{"rendered":"Harper\u2019s Folly: Canada Losing $30+ Billion\/Year on Tar-Sands Oil"},"content":{"rendered":"

Harper\u2019s Folly: Canada Losing $30+ Billion\/Year on Tar-Sands Oil\u00a0<\/a><\/h3>\n

Oil is our most-precious commodity as fuel for the global economy. It is also becoming a scarce commodity, as global production has flattened, while global demand continues to climb relentlessly, everywhere in the world\u00a0except for<\/a>\u00a0the dying economies of Europe and North America. It is a classic \u201cseller\u2019s market.\u201d<\/p>\n

Then we have Canada. Under the Harper regime; Canada has rapidly\/recklessly ramped-up production of tar sands oil (vying with U.S. shale-oil production for the title of \u201cworld\u2019s dirtiest oil\u201d). In less than 20 years; tar sands production has increased by a factor of ten, from less than 200,000 barrels per day to over 2 million barrels per day (mb\/d) in 2014. This amounts to annual tar sands production of roughly 750 million barrels.<\/p>\n

\"Tar<\/a><\/p>\n

Thanks to this reckless over-production; Canadian tar sands oil production has created three ultra-expensive\/ultra-inefficient bottlenecks for itself:<\/p>\n

a)\u00a0\u00a0\u00a0\u00a0\u00a0 Insufficient refining capacity<\/p>\n

b)\u00a0\u00a0\u00a0\u00a0\u00a0 Insufficient shipping\/pipeline infrastructure<\/p>\n

c)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Insufficient skilled labour<\/p>\n

Because of (a) and (b); Canada\u2019s tar sands oil has been sold at \u201cdiscounts\u201d of up to $40\/barrel. Because of (c) and other factors;production costs<\/a>\u00a0for tar sands oil (which was already the world\u2019s most-expensive) continue to soar.<\/p>\n

 <\/p>\n

Legions of workers must be flown in, housed and fed, adding to costs. Competition for labour is so fierce that some companies now subsidize mortgage payments on $600,000 houses to entice workers to stick around.<\/i><\/p>\n

The combination of a grossly insufficient labour force, and grossly insufficient infrastructure to support this production is that while it is \u201cthe lowest priced oil in the world\u201d, currently trading at a pathetic $36.02 per barrel, it is the\u00a0most-expensive oil<\/i>in the world to produce.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

\u00a0<\/i><\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Harper\u2019s Folly: Canada Losing $30+ Billion\/Year on Tar-Sands Oil\u00a0 Oil is our most-precious commodity as fuel for the global economy. It is also becoming a scarce commodity, as global production has flattened, while global demand continues to climb relentlessly, everywhere in the world\u00a0except for\u00a0the dying economies of Europe and North America. It is a classic […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[1082,1642,103,595,749,781,782],"class_list":["post-7208","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-alberta","tag-bitumen","tag-canada","tag-oil-production","tag-stephen-harper","tag-tar-sands","tag-tarsands"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7208"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7208\/revisions"}],"predecessor-version":[{"id":7209,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7208\/revisions\/7209"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}