Dear Editor:
At today’s listed price for heavy oil delivered in Asia, Alberta bitumen would get about $2 more than if it were delivered to the key U.S. hub.
This translates to an additional $450 million per year of revenues
The federal government has committed $1.2 billion of taxpayers money to spill response so normal economics would indicate that the Kinder Morgan expansion and access to the Asian market could add a net value of about $200 million per year over the next several years.
This is the value that the federal government puts on the safety of the citizens of the Lower Mainland, the Burrard inlet and the B.C. tourist economy. It is less than one-third the cost of the roof on B.C. Place.
The federal government needs to explain to all Canadians why these risks to B.C. are given such little value and why the Kinder Morgan expansion is in Canada’s national interest.
Clearly there must be much more at issue here. The answer lies partly in the new NEB report which says that Alberta production of raw bitumen will grow by an additional 1.5 million barrels per day over the next 12 years.
This bitumen, together with the dilutants it requires, will need another 2.1 million barrels per day of pipeline capacity. That is almost four times the capacity of the Kinder Morgan expansion.
Doug Taylor, North Vancouver
