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Canada Lost $17.13 Billion Over 3 Years Because Trudeau Blocked Canada East Pipe



Canada Lost $17.13 Billion Over 3 Years Because Trudeau Blocked Canada East PipeThe original plan for the Canada East pipeline to reach Quebec and New Brunswick from western Canada, was to carry 1.3 million barrels per day of oil. Based on the Wednesday price for the Canadian grade of WCS, Western Canada Select grade oil of $45.33 U.S., that 1.3 million barrels per day means 20 percent federal royalty to the government of Canada. Over half of Canada's oil produced is of the lower priced WCS grade.
Based on today's closing price of $45.33 for WCS, that 20 percent royalty means $9.066 U.S. per barrel for the federal government, plus royalty fees to each producing province. Each province also gets between 10 to 20 percent oil royalty fee. The WCS price is posted in U.S. dollars but converted to Canadian dollars. at today's 4 pm exchange rate, of $1.3278 Canadian. That means the royalty per barrel of $9.066 U.S. is $12.038 in Canada currency. With the potential to carry 1.3 million barrels per day in the Canada East new pipeline, that means $15.6497 million CDN per day in federal royalty payments that have been missed because of Trudeau blocking the new pipe to the Montreal, Quebec city and New Brunswick refineries. The Montreal and Quebec City refineries and the New Brunswick refinery are using imported oil. This is bad news for the economy of Canada and every province, because of the Trudeau policies. Canada is missing $15.6494 million CDN per day, just on the Canada East pipe blocked by Justin Trudeau, former night club bouncer and former school teacher, currently starring in multiple resurfaced brown and black face photos gone viral. That amount is $5.7118 billion per year based on September 18, 2019 prices. Over the past 3 years of Trudeau blocking it, that one pipe alone is missing $17.1354 billion in royalty payments for the 2017, 2018 and 2019 years under Justin Trudeau. Over a 10 year period, that amounts to $57.118 billion.

Over 20 years, it's $114.236 billion missing from the coffers of the government of Canada. Canada exports about 2.6 million barrels of oil per day alone to the United States via train and pipelines. Previously to the oil downturn in prices 4 years ago, Canada was producing 4.5 million barrels a day of all different grades of crude oil. This can be closer to 6 million barrels a day if the pipelines and oil shipments via ocean ports on both east and west coasts, can be unblocked with an Andrew Scheer Conservative government, in the October federal election. Not all of Canada produced oil is heavy, medium or light grade oil. Today, the Medium Grade WTI price for oil closed at $58.09 U.S. or $77.08 in Canada dollars. This equates to a royalty to the federal coffers of 20 percent of $15.417 CDN per barrel for Medium Grade WTI oil. Canada produces about one million barrels per day of Medium WTI grade oil and a smaller amount of Light oil. Oil production in Canada is being held back because of the inability to get more crude to Canadian east coast refineries and shipping ports on both coasts, because of Trudeau and his Liberal Party. Canada is capable today of producing another million barrels per day, within a few months, if both governments allowed and shipping ports were used to move it from Canada to overseas markets. This huge amount of money is missing from federal coffers because Trudeau has delayed or blocked oil production in various areas, ( Yukon and NWT ) ocean shipping ports in British Columbia or pipelines.

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There is no reason why the Canada East pipe cannot be designed to carry even more than the original 1.3 million barrels per day, to bring even more royalty fees to both the federal government and each producing province. If the Canada East pipe was increased in size by just 15 percent to carry 1.5 million barrels per day, that will give the federal government another $86 million per day in royalty fees or $6.669 billion per year. That equates to $19.7088 billion lost, over the past 3 years of Trudeau. Alberta, Saskatchewan and Manitoba all have light, medium or mixed grade WCS oil that will be shipped through the Canada East pipeline to Canada's eastern refineries and Atlantic Ocean shipping ports. Canada can export crude and refined fuels to Europe and South America and Asia, from the New Brunswick port and refinery, as it has been designed to fill the largest VLCC, 2 million barrel crude oil ships, just moored offshore. Canadian produced heavy crude is upgraded before it is refined, so the final fuel products are cleaner than fuel produced from virgin medium grade oil that has not been sourced from upgraded oil. Upgrading heavy oil removes most of the undesirable things contained in all crude oil. Shipping crude oil through a pipeline is much safer and cleaner than shipping by a train. Cleaner and greener should be the way to go, but Trudeau ignores that fact but pretends to be green. You will notice that i did not include the extra income from payroll taxes of the thousands of extra workers who will be working and the higher taxes that each oil company will pay to the federal government. Add another few hundred million in taxes to the coffers of each provincial government and the government of Canada for all the extra tax income.
This article is written by Mark Smyth in Toronto for Canada Free Press. My email is mark7smyth@yahoo.com and my Toronto cell phone number is 647-464-7336. I have written freelance for Canada Free Press for over 12 years, on various technical or energy related topics.

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Mark Smyth——

A former member of the S.A.E. (Society of Automotive Engineers), Mark Smyth has had a lifelong love for machinery.  Driving a tractor on his family farm at age 4, he raced boats and cars during the 1960s and 1970s, both powered by gasoline and alcohol fuels.  Having even used hydrazine (rocket fuel) as a fuel additive in drag racing, Mark learned all about synthetic lubes from a chemist who developed the very first synthetic lube oils to be certified for U.S. military specs back in 1952.


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