Quote:
Originally Posted by Chadillaccc
Breathe...
and don't ever insinuate that I am a conservative again. Thank you.
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I never said you were Conservative, so you must not have read what I typed? You need to be sure to read what is said before responding if that is the case. LOL
The focus was the NEP, and how that has turned Calgary relatively Conservative for another generation beyond what it already was. Honestly its a type of stockholm syndrome, because the energy markets in Alberta would be healthier today with the NEP than without. Again, the NEP would have reduced oil prices for Canadians - all Canadians - and it would have allowed a Canadian market to price the product higher for export to the US and other markets. This was protectionism, it was price controls, it was placing control of Canada's oil market inside Canadian borders instead of handing all the power over to brokers in Texas and New York, which is where all the power is today for setting the price of Canadian oil. Think of it as creating an independent, Canadian "OPEC" onto itself, if this helps you to understand what I'm saying. Conservatives gave up Canada's right to self regulate and gave up sovereignty over the oil market all because the tar sands had a hard time selling at a higher price abroad in the 80's and 90's with cheap OPEC supply, after OPEC hurt the world oil supply throughout the entire 1970's from where the NEP was born.
This is why the NEP was hated by Calgarians in the 80s... It made the price of tar sands oil more expensive for export just as OPEC dropped the price of their oil in the 80's (after causing worldwide hysteria in the 70's). This happened during the need for investment into development of the tar sands to make them profitable, which was
temporarily bad for Calgary.
What Canadians and oil markets in Canada tend not to realize is that OPEC bankrupted lots of oil interests in North America. The NEP wasn't the cause of it. Half of Denver's skyline was built in the 80's from energy companies, and by the 90's most of those companies went bust. Dallas also underwent an overbuild of office space due to energy companies investing in the 80's, just to see the Dallas market for office space have a glut of unused space for over a decade thereafter when OPEC hit American energy producers hard. So much of that office space was built by energy companies expecting growth when the North American market retracted after OPEC flooded North America with cheap oil.
Yet myopic Conservatives in Canada blame the NEP for all problems. For Conservatives it was an easy political bashing point: NEP, Liberal = evil, bad. Stop, rewind, repeat and you win western Canadian votes for a generation to come. If I were a Conservative party member, I'd use that selling point as well. It works well for that party, even though its the biggest lie in modern political history.
I'm breathing just fine, I happen to find intellectual discourse on these issues interesting. And yes, western Canada still has a stockholm syndrome surrounding the NEP. Its hated by older people in the west for no reason at all, other than short term thinking from the 80's. And ultimately, as markets like Denver prove, the NEP had no real power vs OPEC in hurting investments into tar sands development. The tar sands really didn't become a boom until OPEC started raising prices anyway in the early 00's.
And again, tar sands oil from Alberta is sold today in 2013 for a fraction of other oil sources. New York markets price Canadian oil cheaply, Calgary doesn't earn as much per barrel as other oil sources. And that isn't because of the tar sands more intense extraction process, it is because Canada has no sovereignty on pricing its oil that the NEP would have allowed.