About Me-email is... grant.go@aol.com

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garden bay, west coast, Canada
persistent digging,never say never

Wednesday, November 28, 2012

Chinese Tigers Playing with Canadian Sheep(updated October 4th)


The curse of Asia, LNG prosperity fantasy, it amazes me that so-called educated people are so stupid, sure enough many people aren`t blessed with critical thought processes but one doesn`t have to be smart to remember the not so-recent past.

At one-time North America was the electronic manufacturing capital of the world then Japan entered the market and things changed, bit by bit Corporations left the US of A and moved to cheaper labour markets, first Mexico, then Korea now China with their labour laws and zero environmental standards took over almost all electronic manufacturing, now they produce everything from flashlights to Starbucks coffee cups, everything is made in China, this domination has led a race to the bottom, electronic goods built so cheaply that even small repair businesses in the west have had to close shop, TV repairs obsolete, video repair obsolete, parts for repair are almost as expensive as a brand new replacement, in other words, throw away technology when it fails...

Vaughn Palmer has written another article on the need to rush into the building of  LNG terminals, his third in short order, Vaughn is stressing the importance of rushing in before the window of opportunity closes....Sorry Vaughn, the window was never even opened, the Chinese merely fogged up the glass with hot air dreams.

Vaughn talks about how Australia is way ahead of us in LNG exporting, they too are expanding operations to satiate the Asian market, Russia too, and Vaughn Palmer is correct when he talks about a north American glut of natural gas, with new hydro-fracking shale gas is available in quantity everywhere, thus the North American price has plummeted to prices not seen in a decade, current prices EnCana gas and other producers in Canada make zero money on extracting it, the Province too, $3:00 per unit is the rock-bottom price for making money on this finite resource....right now the price is $2;40

I have studied the LNG market, I also studied the Chinese technique of tip-toeing into a market and in a few short years they dominate it, right now Super tanking business is in the tank, vessels are losing money, the Chinese have bought up most of the super tankers and are buying 80 more new vessels, they`re single handedly taking over the shipping game, phony subsidies from the regime in Bejiing create the illusion of profit when none exists....Even Sinopec and Petro-China are losing $billions subsidizing their domestic driver`s gasoline and diesel, nothing is as it seems in China.
______________________________________________________
"China’s plan for 80 super tankers worries owners

Beijing’s goal to transport half its oil imports on its own ships brings huge problems for foreign fleets

Keith Wallis in Boao, Hainan Island
07 November 2011

Plans by mainland ship owners to order up to 80 super tankers would be disastrous for foreign ship owners who would likely see charter rates plunge and vessels left idle, a senior shipping industry figure warned.

Torben Skaanild, secretary general of the Baltic and International Maritime Council (Bimco), said if all 80 ships were ordered “it would kill the tanker market for years - it would be a catastrophe”.

Skaanild was speaking on the sidelines of the World Shipping (China) summit at Boao on Hainan Island on Friday about renewed speculation that China Ocean Shipping (Cosco) and China Shipping Development as well as other mainland owners intended to embark on an ordering frenzy for new tankers. This was to ensure mainland ship owners met Beijing’s target that 50 per cent of China’s oil imports should be carried on its own ships by 2015.

Figures from China’s customs bureau show the mainland imported 130 million tonnes of crude oil in the first half of this year, equivalent to 434 super tanker shipments, and up 7 per cent year on year.

Moves to acquire a further 80 very large crude carriers (VLCCs) would more than double the existing combined fleet of China’s four largest ship owners, who together control 56 super tankers each of about 300,000 deadweight tonnes.

Based on existing orders, China Shipping Development plans to add a further three VLCCs to its fleet by 2013 and Nanjing Tanker Corporation, part of Sinotrans and the China Shipping Company, will take delivery of a further 10 large tankers by the end of next year. They are among 30 super tankers on order to Chinese ship owners.

Captain Wei Jiafu, Cosco chairman, confirmed that mainland ship owners would acquire a further 80 VLCCs over the next four years.

Explaining Cosco’s strategy, he said it was likely to form shipping joint ventures with mainland oil companies such as China National Petroleum (PetroChina), China Petrochemical (Sinopec) and China National Offshore Oil Corporation (CNOOC). These joint ventures were likely to order new tonnage.

Skaanild said some independent owners were worried about the impact on the crude oil tanker market if China went through with its tanker-owning target. Bimco, which had 900 owners as members who controlled 66 per cent of global merchant ship tonnage, believed in free competition, he said, “but we have to express our concern”.

With ship owners facing the worst crisis for years as too many vessels chase fewer cargoes, Skaanild said some owners would not survive, so there would be plenty of ships to buy. Bimco’s position was that owners should not be building new ships.

Peter Sand, Bimco’s shipping analyst, said the VLCC market was in dire straits. “Last year, a modern VLCC earned US$37,929 per day, while year-to-date 2011 earnings are down 55 per cent at US$17,157 per day,” he said - an amount that barely covered operating costs. 

_____________________________________________________
I can`t help but laugh, the British Columbia government is drinking the Asian bubble tea, BC Liberals have sold Vaughn Palmer the juice too, BC Liberals are spouting the line that they will receive 4 to 5 times the North American price from Asian buyers....Now that`s funny, really it is.

Vaughn Palmer in his latest article also talks about the massive reserves of shale gas China itself has, it`s reported that China possess the largest supplies in the world, 5 times as much shale gas as North America, and it`s true...

_______________________________________________

"According to the US Energy Information Administration, China holds the largest reserves of shale gas in the world, enough to supply China for more than 300 years. There’s no current commercial production of shale gas in China, but several companies have exploratory projects underway, including Sinopec, PetroChina, Royal Dutch Shell, BP and Chevron.
An official from CNPC commented that the compant has found shale gas in around 20 locations, with each able to produce over 10,000 cubic meters of gas per day. Reuters reported that Shell has found shale gas in China, a development that could cap imports in a market natural gas producers are hoping will drive demand. Shell has observes good primary production from its two vertical well. Chevron, which experienced a dry well in its first well has now found encouraging results in its second well.

China is poised to become the world’s largest producer of shale gas,"
 Huge Potential for Shale Gas in China | Derrick Petroleum Services
_______________________________________________
So here`s the deal or should I say, here`s the Chinese game, Australia is ramping up LNG export production, Qatar is Ramping up LNG export facilities, Russia is in the game too and let`s don`t forget the USA, everybody ramping up in a big rush to service Asia`s growing needs....

So what happens?...Everybody is chasing these enormous future profits and big LNG price from China, really, think about it, China has more gas than anyone else in the world, enough for 300 years yet these north American idiots think China is going to open up their wallets and pay a giant premium from us,  now that`s even funnier...

China has everyone right where they want em, chasing a fantasy, once LNG ramps up around the world China will be in a position to set the price, peg one country against another, in other words with that much LNG available domestically China merely has to look at their own reserves and the price will crash!...LNG exporters will be selling it at a loss, all that fracking pollution for peanuts...Where have we seen this play before.

And there is more, much more, let`s talk dirty tar sand oil...Currently the Tar sands use enough natural gas each day to heat 10 million homes, just imagine if the price of this gas was...

4 to 5 times the North American price, this LNG fantasy price the BC Government is drooling over...Well, what would that do to the price of extracting dirty tar sand oil from Alberta?...It would drive the price through the roof, right now the only reason the tar sands can be mined cheap is the low price of natural gas and free water and free land for 1000`s of miles of poison lakes.

China will have all the exporters cutting each others throat for the business, the price will go low and stay low, for China doesn`t need LNG from anyone, they have more than anyone, they need oil, cheap oil and that means cheap natural gas...

Only fools and their money think they can out fox the Chinese, they have done this to almost every industry and the BC Liberal Government and Canada is falling for it hook, line and sinker, those fools and their money will soon part.

There is one more issue with China not extracting their shale gas at this time, fracking requires billions and billions of gallons of water, China has over 300 million people now without fresh clean drinking water, they are also having severe droughts and most of their rivers have been poisoned, mind you the Chinese don`t care about poisoning their people but China is moving slow on fracking, from what I have read China will be dedicating some of its new nuclear facilities to power desalination plants from which China can turn vast amounts of salt water into fracking water...

CHINA The Government: drinking water for 32 million farmers, but ten times more are left without - Asia News

 CHINA For the Chinese, pollution and the environment top list of problems - Asia News

You can read Vaughn Palmer`s latest splash here, not much in it but hyperbole and Palmer`s subtle messaging, too bad Vaughn doesn`t know what he`s talking about.

The bottom line is this, with China holding the largest shale gas reserves in the world any thought of BC having China over a barrel and reliant on our natural gas is a joke....

Lastly, BC...if we had 3 LNG terminals humming away BC would deplete all our gas in 3 decades, China has 300 years worth of gas, China`s population is 50 times that of Canada, yet they have enough gas to supply their population for 300 years, how silly and sad that BC wants to exhaust our finite supplies for a short fantasy sugar rush.

China and Asia have taken over the electronics manufacturing, we can`t compete with their slave labour, same thing with shoes, clothes, housewares, food products, China also leads the world in intellectual property theft, human rights abuses, environmental crimes, counterfeit goods, cyber attacks, China is not investing in Canada they are buying it, whole operations, free trade zones, their own coal mine, their own workers, their own Chinese standards in Canada, a foreign country operating in Canada as if they own it, maybe they do...

My advice to the Province is build 1 LNG terminal and proceed slowly after that, I also suggest that CSIS maintain their diligence and watch the Federal Conservatives very closely.

And if Christy Clark or any Canadian politician thinks they can outsmart or wall China in well....

Whatever their smoking must be some good shit, perhaps that might be a better fiscal investment than playing reindeer games with Bejiing..



Updated here (October 3/2012), this story was written on February 8th/2012, and today October 4th/2012 the experts have come around, actually the experts might  have just plagiarized my this story, all of these BC economic advisors are now looking like fools, Christy Clark is really looking the fool....

Vaughn Palmer can explain it to you, in fact Vaughn Palmer might as well just put a link to my story(the above story) rather than waste written words, for there is nothing new, the scenario Vaughn talks about was already presented above and discussed below at The Straight Goods, on February 8th..

Here is Vaughn Palmer`s input


http://www.vancouversun.com/business/bc2035/Palmer+Clark+ever+more+ambitious+natural+plans+bump/7340278/story.html

And now we can ad Rafe Mair`s take......

 http://thetyee.ca/Opinion/2012/11/26/Gaseous-Dreams/

Enjoy the reads, I mean the original read, the one above.

The Straight Goods

Cheers Eyes Wide Open

36 comments:

Grant G said...

Oh, before I forget, a big hello to all you new members of The straight goods.

I`m gonna need a bigger site to house you all.

Welcome aboard.

Salut

kootcoot said...

"China is not investing in Canada they are buying it"

Well Said.....touché

Anonymous said...

I,m sure Harper has grandiose plans, to govern the entire globe at China's side.

The U.S. and Canada, broke their necks, to ship their factory's to China, for the very cheap labor. The goods China puts out, are very poorly made cheap crap.

Harper is also permitting China to buy up the tar sands. It's only a matter of time, before China will control all of the tar sands. They are also bringing their own people over here, to take our jobs as well....With Harper's blessings.

Hugh said...

Producing LNG requires a lot of energy, whether by burning the gas, or from BC Hydro. Any new electricity acquired by BC Hydro is hugely expensive. Site C, for example, would cost BC Hydro est. $8 billion.

Another source for BC Hydro would be the Bute Inlet proposal, which would mean a massive, privately-owned industrial development of the Homathko and Southgate Rivers which flow into Bute Inlet.

Anonymous said...

Harper and his Cons ( and BC liebs) have played right into the game of the Chinese.
Suckers.

Grant G said...

Hugh, there is enough extra power in BC for 1 LNG terminal..

Damn Straight, any other LNG terminals can build their electric generating plant with their gas, no subsidies from taxpayer.

I don`t care about our emissions..eer, let me rephrase that, for British Columbia to pretend we care about emissions(Domestic)is a sad joke, record coal shipments, dirty tar bitumen for export,...

Greenhouse gases don`t know borders, also, if BC is going to be a petro state with gas and coal and export it without a carbon tax than BC`s domestic carbon tax MUST be Scrapped..

Leave the damn Bute alone, no more run of river projects for industrial use, industry can burn gas. these rip-off private IPPs where they get $%140 per mega-watt...Who pays it?..Nit industry, they get the powers for the lowest industrial rate, no more subsidies from homeowners to mega profitable mining and gas outfits!

Good day

Hugh said...

I agree, Leave the Bute alone!

Hugh said...

Now that exporting LNG is ok, I guess BC Hydro will be ramping up Burrard Thermal. Cheaper than IPP power.

Anonymous said...

Seems Harper just signed a whole slew of deals with China. We can kiss Canada good-bye. We can also kiss our jobs good-bye. If we thought Vancouver was overrun and bought up by the Chinese. Wait until they bring all their workers here.

The Canadians who gave China our factories and such, have had corruption within their company's, from the Chinese ripping them off.

Well, that is supposed to be corrected. There can be equal footing now, between both country's investing in each others Nations. Harper will permit China, to buy up as much of the tar sands, as they want.

Say good-bye to our country people. Canada will be gone. Well, Canada was gone anyway, as soon as Harper got his majority. I wonder if we tax payers will also have to give billions of our tax dollars, to China's large corporations too?

e.a.f. said...

Yes I do expect we will have to give our tax dollars to Chinese companies. We give it to other foreign companies so why should China miss out.

WE give our tax $s to foreign companies all the time by giving them tax breaks, reduced tax rates, grants, etc. IT IS TIME TO STOP CORPORATE WELFARE. Tax these companies at the same rates they were in the 1960s & 70s. Foreign owned companies should pay more in taxes because they don't contribute to canada. In some countries foreigners are not permitted to own land, i.e. India. In some countries land owners who are not legal residents of those countries have to pay property taxes at almost double the rate of residents. It is time Canada got with the agenda and kept their natural resources in the ground so they will be there for future CANADIAN generations.

China is investing in a number of countries with oil, gas, and other natural resources. Once the country starts to rely on these markets they will begin playing one off against the other and it will again be a race to the bottom.

Yes I do expect Harper is in China giving away our country. Making deals so they can own more of Canada. Don't forget old chrustie here in B.C. when she went to china a consortium of businesses gave her almost a billion $s for demonstrate their interest in coal mining in B.C.

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Anonymous said...

Well, well, well. The start of a very dark time in Canada. We are all aware of the corruption in China (and here) so we must all report things eve more so now.

Canaccord, Chinese bank unveil $1-billion fund to invest in Canadian resources


boyd erman

Globe and Mail Blog

Posted on Thursday, February 9, 2012 6:05AM EST




One of Canada’s biggest investment banks is teaming with a Chinese bank to create a $1-billion (U.S.) fund to invest in Canadian resources companies, an initiative unveiled as part of Prime Minister Stephen Harper’s visit to China.

Canaccord Financial Inc. (CF-T9.130.242.70%) and Import Export Bank of China will create what they call the “Canada-China Natural Resource Fund.” Senior executives from the companies were scheduled signed a memorandum of understanding on the plan with Mr. Harper and Chinese Vice-Premier Li Keqiang present.

Mr. Harper’s trip to China has in large part been focused on closer ties between the two countries economically, and he has used some of his time to urge officials there to allow Canadian companies to invest in China.

Going the other way, Chinese capital has been flooding into Canada’s resource sector, especially in energy. State-owned enterprises have invested in Canada’s oil sands, and looked at huge deals in mining.

That flow of money may only increase with this fund. Canaccord and the Chinese bank, known as Eximbank, expect to raise a good chunk of the $1-billion from large Chinese investors. The fund’s objectives also include sustainable development and “substantial returns on investment,” according to Canaccord. It will be set up at arm’s length from its owners, and will be run by independent managers hired by the fund’s backers, the firm said.

“The ‘Canada-China Natural Resource Fund’ demonstrates the importance of Canadian financial markets in the development of resource companies and the continued expansion of Chinese participation in natural resource projects around the world,” Canaccord chief executive officer Paul Reynolds said in a statement.

Canaccord has focused on expansion in China, buying an advisory firm in the country and partnering with Eximbank to drum up business.

Anonymous said...

Frightening...

http://www.valuewalk.com/2012/02/canada-thumbs-nose-at-us-starts-free-trade-takes-with-china/

Anonymous said...

The Campbell connection

Interestingly, Patrick Kinsella, Bruce Clark and Erik Bornmann all came together in a business venture called Canada Payphone in the late 1990s, along with major Gordon Campbell backer Peter Brown's Canaccord Capital.

Anonymous said...

Both Jack Poole and Peter Brown are close confidants and key political and financial supporters of Gordon Campbell.

BC billionaire Jimmy Pattison told the National Post in 2001 that: "If Gordon Campbell is king, then Peter Brown is emperor."

Canaccord Capital has contributed over $195,000 to the BC Liberal Party since 2004 and Brown has personally given over $25,000 in that period.

http://www.peak.sfu.ca/the-peak/2004-1/issue3/fe-gordo.html


Feb 9, 2012
Also, Canaccord Financial and the Export-Import Bank of China announced their plans to establish a $1-billion U.S. fund dedicated to investing in Canadian natural resources.

China is looking for more oil and gas from Canada, with Chinese Vice-Premier Li saying Thursday his country wants to increase imports of energy and natural resources from Canada.

So much information to be found. Campbell and Co. still lurking in the background in pretty well everything.

rahul said...
This comment has been removed by a blog administrator.
Anonymous said...

Good post Grant, as always.

Canada is now losing G.M. This will mean, 2,000 job losses for Canadians. Canada had given millions to G.M. However, G.M. is going to the U.S. Seems Mulcair is exactly right. Canada's high dollar, is killing our manufacturers.

Harper has also made it easier to shop in the U.S. Makes a person wonder why Harper, is willing to lose billions in revenue to the U.S?

Watch out for, Obama, Harper and Calderon's secret border talks. People should perhaps read: Harper gives a speech in New York, at the Council of Foreign Relations. This was, Sept 25/2007.

Anonymous said...

Canada is now losing Bombardier as well. Nothing left soon but minimum wage jobs thanks to Harper et al.

Crankypants said...

I too am of the opinion that the proposed multi LNG plants will turn out to be a non-event when all is said and done. It seems that all too often we are inundated with supposed good news announcements promising a gazillion jobs and prosperity for all. It may make great press and photo-ops but the results are usually underwhelming.

Anonymous said...

Campbell gave our mill industry to China. China owns BC mines. They are permitted to bring their own people to work them. Harper and the BC Liberals, lied about the jobs Enbridge would bring. China is building the pipeline.

We are accused of not working low wage jobs, in another location. It costs thousands to move a family. When they bring foreigners over. They get free transportation, they are housed and, free food in camps, or only a few dollars a day in some jobs.

This is not given to the people of Canada, and especially in BC. People are too damned poor to move, if it's a minimum wage job. If it's a good paying job. Some can borrow from relatives to cover their moving. And they can pay back the borrowed money. It's usually by u-haul or borrowed trucks.

With gasoline at this outrageous price in BC, some people have even lost their local poor paying jobs, because they can't afford the gas nor car insurance. And of course, hydro, heat and 30% hike in food costs, have now been raised through the roof. Like, a low income family, can afford to pay over $15.00 for one scrawny, three pound chicken?

People who never thought, they would have to rely on Food Banks, are now forced to. Such is life in BC. We are Christy's family's first. We don't feel like, Christy's family's first. We are last instead.

Anonymous said...

How about, Queen Elizabeth is giving Harper, a honorary knighthood?

That will certainly turn the Canadian citizens, against the Queen. Some Canadians already resent the Royal Family. Good thing Canadians didn't know, before Charles and Camilla came to Canada.

Anonymous said...

I've always said that ordinary Canadians should all kick in to a huge pot which would offer all these neo-con politicians a few million each if they would get out of politics and leave the country.

If only there were a country willing to take them... Transylvania perhaps?

Just kidding:
"Film fans might imagine that Transylvania is a dark, foreboding region filled with mountains, creepy castles on crags, pale-faced nobles with sharp teeth, and a menacing menagerie of werewolves and vampires. The real Transylvania is more of a daylight fantasy: flower-filled meadows, lost-in-time villages, sun-drenched plains dotted with churches and castle ruins, and family-friendly ski slopes. This complex and exciting region makes a superb holiday destination."

Exactly the kind of place BC used to be before big industry shills got their fangs in so deep that they are bleeding us white like physicians of a bygone age bled their patients.

This age of globalism can't end soon enough.

Anonymous said...

Do we forget how the Japanese wanted BC coal?
Once production was boosted the Japanese successfully re negotiated lower prices!
What are the chances of the Chinese doing the same?
Lots...

Anonymous said...

Grant, never has it been more important to let the youth movement loose in Canada. As far as I am concerned they will be the only ones to stop this insanity of Harper and his right wing henchmen.

Message to our youth, please use your energy, your useless future, anger and fight for Canada. Your parents are so engrossed in their stock portfolio and coupled with their lazy ethic and easy lifestyle that they have lost the way......

Anonymous said...

From another site:
http://www.quadrant.org.au/magazine/issue/2012/6/chinese-espionage-and-australia-s-national-interest


Something to think about.

Hugh said...

A $TRILLION in benefits to BC! Oh boy!

Hugh said...

You probably saw this, how a US company would undercut LNG price:

http://www.vancouversun.com/business/energy/price+deal+shifts+landscape/7339980/story.html

Grant G said...

Thanks Hugh, yea I read that..What gets me is this...I predicted and called this exact scenario last February when I wrote this post...

almost a year before anyone else wrote a damn thing, funny stuff for sure(eh Farrell, and others)..

That`s what happens when you have Enbridge(ken boesenkool) and Encana gas(Gywn Morgan) working in the premier`s office.

Northern Insights..phew, Northern copy cat without attribution..

Cheers

Anonymous said...

http://en.wikipedia.org/wiki/List_of_pipeline_accidents_in_the_United_States

http://en.wikipedia.org/wiki/List_of_pipeline_accidents_in_the_United_States_in_the_21st_Century

Hugh said...

I was wondering what you thought of this:

"B.C. collects a royalty on the gas that producers sell to customers, but there is no royalty on gas that is used to produce gas in the field.

It is not clear whether this exemption also applies to gas that is used to run pipelines and generate the electricity needed to produce LNG. The foregone royalty amount is very large, says Austin.

“When gas is used to produce gas, then the government loses royalty. So there’s an actual cost to the government in not supplying electricity to the gas industry in order to get gas out of the ground.”

from:

http://www.vancouversun.com/business/2035/Natural+Managing+bounty/6862883/story.html

Grant G said...

Hogwash, LNG for export is a bust, that statement is generated from the IPP boys,....

They want guaranteed power dirt cheap, who will pay the 130$ KW hour????

Not the LNG boys, they need huge volumes of electricity,..

Thanks Hugh, it`s a straw man argument...

Here`s the real deal, LNG for export is looking very sad indeed, the BC LNG exporters figure with FREE electricity they can make a go of it...

Guess who would pay $4 billion dollars per year in hydro electric costs?....You got it, us, the taxpayer..

Read this article here Hugh...


http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/west-coast-lng-advocates-face-tough-road-ahead/article4593452/

Grant G said...

In case you thought I was wrong about the IPP river rapers...


http://billtieleman.blogspot.ca/2012/10/david-suzuki-keynote-speaker-to.html


David Suzuki sells out BC tax payers again,...

You can thank David Suzuki and Tzeporah Berman for getting Gordon the thief Campbell reelected in 2009..


http://powellriverpersuader.blogspot.ca/2010/05/silwnce-from-tzeporah-berman-and-david.html

Anonymous said...

Didn't I jsut see on the news that Catalyst on the island may need to shut down as there is not enough water in the Cowichan river to keep it going. They need the "river power" to run the plant. El Gordo sold us out and Christie and Co., Stevie and Co., carry on as well. Same for LNG, they need the Site C for the huge amount of power they're going to need to sell off another resource. Too bad for us little guys, we'll be paying more for hydro. That's what the smart/dumb meters were for, certainly not efficiency.

Grant G said...

No worries, LNG in BC isn`t going to happen, at least not on a large scale..

The first LNG plant proposal can`t even get 1 long term contract at dollar amounts that warrant a multi-$billion dollar investment..

China has gone into recession, Pat Bell announced today that even cheap pine lumber exports to China have crashed..

Silly BC Liberals, they listened to Communists and oil executives, now we`re hooped..

Cheers

Anonymous said...

See you have not published my last few comments. That's cool, please don't publish this one either, but take note:
Their, is the possessive form, as in their policies, or their car or their snowmobile.
There, is an adverb, as in there is the car, there is the truth, there is the lie. what is there.

Your is is possessive, as in your car, your boat your house. You're is a contraction of you are. As in you're an idiot to bring this to my attention.

Its is a possessive, as in the government and its ministers, the jeep has its advantages, civilization is its own worst enemy.
it's is a contraction of it is. As in it's a shame, it's part and parcel of the contract.

http://englishplus.com/grammar/00000256.htm

Hope I have not insulted you, but little things like those can make a big difference, especially when you are otherwise writing so much better than I can.

Grant G said...

Must have missed it in editing, thanks