ROCKMAN wrote:Fox - I think I get it now.
I'm also starting to understand a bit more of the details as well. If this project is to be seen as an "In the best interest of the nation" project (as I do see it) then you're right, the government does have some responsibility to underwrite it and make sure it is successful
It also hit me this morning about another aspect of it all. By taking its royalties as bitumen (approx $5B/year at a rough price of $35/brl) is the Alberta government setting itself up to skirt transfer payments or other tax agreements with the federal government?
As much as I loath governments, for the most part they're actually not idiots. So it's doubtful that Alberta would be taking on the bitumen without at least having a fundamental idea of how to spin it to their advantage.
Perhaps political leverage over the US and the rest of Canada is part of that. If they can claim control of 50% flow of the new pipeline (and about 15% of Canada's current oil production), that allows them the ability to dictate more than just a better price. It allows them a serious say at who becomes a "Have" and "Have Not".
That may explain the motivation behind it all however being in the "Have Not" (Ontario) group, I like the idea even less