Friday, July 30, 2010

What happens if the Enbridge Pipeline is never built?

The oil from the tar sands are still going to be produced and will still find someway to market.   If not to China via Kitimat, then it will likely be transported to the US and then sold to China.   Another option is for it to come to Vancouver and then be shipped out.

The tar sands are one of the most important sources of oil for the next generation.   As the technology gets better and the costs and energy needed to extract a barrel of oil, the costs will drop.   As the costs drop, more of the tar sands will be developed.   All this oil will find a market, it will be sold.   It is realistic to expect 10% of the world's oil supply to come from the tar sands within 15 years.   There is a market for all of it.

The Enbridge pipeline means a lot of jobs in construction in the northwest and then a few jobs afterwards along the line and at the port.   No pipeline and all of these jobs will go somewhere else.  

The pipeline will also pay a lot of money is property taxes to local government and First Nations.  No pipeline, no taxes.

Putting barriers in front of tar sands oil will only make money for people that find ways around the barrier.   If the issue is not wanting the oil produced, you need to develop other sources of energy that are cheaper so that demand for oil drops.
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