Quote:
Originally Posted by Changing City
The oil pipeline proposed to cross Manitoba to Sarnia appears to be for an entirely new line.
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Quote:
Originally Posted by ssiguy
I can understand Ford wanting a pipeline to Sarnia. Currently every drop of oil consumed in Ontario comes from Alberta via the US. That said, the logistics of this is going to be harrowing and hence very expensive and take a long time to build. IF any company comes forward, which I highly doubt, it will be at least 15 years before any oil starts flowing.
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That's crazy. I assumed it was mostly recylcing the Energy East to convert the less used Gas mainline to oil and then extend to Sarnia. Buliding an entirely new line as a backup for a fairly small refinery is pretty crazy. We would be better off building a new refinerey. This pipeline would cost a lot more than the Sarnia refinery is worth.
Quote:
Originally Posted by ssiguy
The boom/bust oil economy is coming to an end because oil is definitely a commodity on it's way out. It won't be sudden but it will be a continual decline much like coal was in the mid-20th century. It will be profitable for many decades but at the same time any new infrastructure will be very hard to justify. Big oil companies know this better than anyone which is why, despite getting the go ahead for a new pipeline to Vancouver, no company has yet to come out with a business case for investing in it. Unless the gov't come out with BIG construction subsidies, businesses know they will get little return on investment.
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There are huge investments happening in oil and gas worldwide. People would rather invest in politically unstable jurisdictions because frankly we are just as unstable in our own way. There is absolutely consensus demand remains strong for 30 year+ horizons.
Meanwhile Australia still exports $60 Billion a year in Coal. So even well past peak there is a lot of value to be had.
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