Tuesday, October 8, 2013

Petronas, British Columbia`s Exporting Oranges And Gullibility Industry Leader(Updated)

Yes indeed, we have baskets, bushels and wheel-barrows full of oranges, our front pages have nothing but stories on oranges, articles on gullible, and yes, the usual braindead bloggers take the bait, hook, line and sinker..(eh Harv)

This LNG bullshit is really getting thick, the lies, the spin, the hyperbole have united to form a great big steaming pile of...

I also see there was more shipbuilding announcements today...Funny stuff, a contract with no orders yet, no chosen design, a contract going out decades like the one Harper awarded in 2011, the awarding announcement Christy Clark celebrated too, a big Seaspan party in 2011...And though, that 2011 shipbuilding contract has yet to cut any steel, the $8 billion dollar contract awarded in 2011, and a $35 billion dollar decades long contract for the Irving shipyards in Halifax and like here in B.C...not one piece of steel cut and none scheduled to be cut before 2017...6 years after the contract awarding, here in B.C. NO STEEL IS SCHEDULED TO BE CUT BEFORE 2017 TOO....

In fact, these shipbuilding carrots have been dangling for 7 years already(shipbuilding proposals from the Feds have been wafting since 2006), is it real or political propaganda, contracts that go out decades can`t be guaranteed, Seaspan and Irving shipyards were awarded contracts in 2011 and no ship is under construction at either shipyard as we near 2014....All we hear is about engineers working on different vessel designs, my gawd, we built vessels and ferries fast in the 40s, built ships for war, yet now in 2014 we have to take a decade to design a ship, or perhaps these awarded contracts are mere political theatre designed for votes, maybe a ship gets built, maybe cancelled, 8 ships proposed being built become 1 ship under construction...This con-game continues, read the shocking ship-building scam the feds have been running for a decade here..


 {Updated here, Octoiber 12th/2013...Finally some of the media is beggining to notice that this ship building awarding and contracts is nothing but but a Federal vote-getting scam..

From postmedia...They must have read my shipbhuilding scam post from last year, the one linked above

"Exacerbating the problem is another delay — described by one official as “a bit of a slip” — that will push back construction of the resupply ships from 2015 to late 2016, at the earliest.
The officials, who cannot be named because of Conservative government rules, said they knew several years ago there might be a scheduling conflict between the new resupply vessels and icebreaker.

However, they sought to avoid responsibility for any mismanagement, though they did not say what led to the scheduling conflict in the first place.
“We did everything possible to eliminate any conflict,” one said. “It was a known risk. As it became a fact, we started to work on it.”

Plans to acquire new resupply ships were initially announced in 2004, with an expectation that a contract for three ships would be awarded in 2008 and the first delivered in 2012.
However, the plan was scrapped in 2009 after industry reported the $2.1-billion budget set aside by the Conservative government was insufficient.

The budget is now $2.6 billion, and officials say they only expect to be able to purchase two new vessels."
(I suggest read the entire postmedia article linked above)

Exactly what was reported here and here only in British Columbia, no ships built yet, ship building plans announced in 2004..in 2009 no swhips and now cancelled, new budget and more vote buying, new contracts awarded in 2011..Still no shipbuilding, ...Now more awarding of shipbuilding contracts but still no construction, still no money and this fall our federal auditor gewneral is goi8ng to expose the Stephen Harper Government for this scam/fraud/vote buying exercise..Gawd, does the mainstream media ever tire of finishing second to little ole under-resourced bloggers!..Sheesh}

Something really stinks around here and it`s more than Harvey Oberfeld`s last post...This LNG scam is really getting thick, time to clear a few things up..

First off, neither Prince Rupert nor Kitimat`s airshed can handle more than 2 gas powered LNG liquefaction plants....Yet we keep hearing about 10 proposed projects, 10 projects for Kitimat and Prince Rupert..So what projects are being cancelled?..I`m kidding, the real question is what projects are actually going to be built...?

I have been following this scam since its inception, for the last 4 years all we hear is about LNG yet no energy company has signed a final investment order or made a final investment decision, no one...

And I want you to think very carefully, there was articles last week telling us BCers that Christy Clark was heading east to promote LNG, Christy was pumping up LNG in Ontario last week, and last week`s articles proclaimed Christy Clark was early this week going to be in WASHINGTON TO AGAIN, PROMOTE INVESTMENT AND LNG.,


"Her next stop is in Toronto for similar meetings, this time co-chaired with New Brunswick Premier David Alward. The two premiers are representing the Council of the Federation on this issue, and she is trying a more diplomatic approach than some premiers would like. But she says her approach is working: “Our strategy is to bring together all the folks who are concerned about this and make sure the federal government understands that we need it to work differently if we want to grow the economy,” she said. “My sense is the federal government is prepared to be flexible, because they want it to work.”

Then it’s on to Washington, D.C., where Ms. Clark will be promoting investment in her LNG ambitions. While TransCanada Corp.’s proposed Keystone XL oil pipeline is straining Canada-U.S. relations, Ms. Clark is promoting something different than products from Alberta’s oil sands. She is hoping B.C.’s leadership around the carbon tax will help open doors at a time that the Obama administration is pushing a climate-change agenda. “I want to get them interested in what we are doing from a climate-change perspective, and also to make sure they understand the scope of this. We have, arguably, the biggest natural gas fields in the world – we have this huge investment opportunity.”



So ask yourself, if all these companies are begging to invest in B.C. why was Christy Clark looking for investors in Washington D.C.???? And in this article...


Rick Coleman is off to South Korea and Malysia to quote..."Sell LNG investments", and next month in early November Christy Clark is heading to Asia to promote and sell LNG....Why, I thought we had more real investors than sites suitable to build, why are we still looking for investors if this is a for sure thing...Why Is Rich Coleman going to Malaysia ???..Petronas is the only Malaysion enrgy company...Why indeed..

Yet that link above, that same Vancouver Sun article on Petronas clearly states that Petronas won`t be making a "final investment decision until late 2015".....2 years or more before Petronas decides to start building?

Why, Petronas despite their announcement has not made a final investment decision..and there is more...That article above describes how the LNG plant builders were denied Federal capital cost tax relief(CAPP and the energy companies lobbied Ottawa last year for that tax change"denied") what the LNG plant builders wanted was the ability to write off 100% of the capital build costs over 7 years, the Federal Government said no, present tax code laws, it takes 27 years in Canada to achieve the tax breaks Australia offered to LNG plant builders in Australia, there it takes but 7 years to recoup capital costs against 27 years in British Columbia, that too is revealed in that article linked above..

So here`s the deal, LNG plant builders want tax law changed to recoup their build costs...Strike 1..

There`s a glut of LNG liquefaction plants coming on line, 5 more LNG plants in Australia alone are coming on-line before any shovels are in the ground in British Columbia..

Japan wants a better price, all of Asia wants a better price for LNG, the new price structure will be linked to the Henry Hub scales, Cheniere energy has already agreed to sell LNG to Japan, delivered for $10 dollars...at that price nothing gets built in B.C....Especially without the capital cost recoup tax law changes, the advantage is in the $billions per plant to build in Australia compared to B.C...and in the USA... The USA has a huge advantage too, existing import facilities are being converted into export liquefaction facilities..thus saving the energy companies $billions in capital spending..

LNG articles are spinning like tops, Japan has offered up to $10 billion dollars to Japanese state owned enrgy companies operating, or should I say, wanting to operate in B.C....But the money offered is not for purchases of gas supply but for equity stakes/shares..Meaning ownership, Japan offered money for pieces of ownership, ownership has its perks, including not paying wholesale for product..

True private companies like Shell and Chevron, BG group(British Gas)....These companies are flustered, they sell to customers..And none of these private companies have agreed to build anything in British Columbia, and here are the reasons..

As mentioned, Australia and Africa offer huge tax incentives, including writing off the entire build cost over 7 to 10 years, whereas in Canada it takes 27 years....

Plus, our natural gas is a $5 billion dollar pipeline away from the proposed LNG plants on the coast, that would be $5 billion dollars each, as for each company wanting to connect their feedstock to an LNG plant..

Christy Clark has blathered about how each northern LNG community will be getting resource /revenues/rents from LNG profits, we have First Nations wanting resource rent, and we have Christy Clark who ...Who has promised BCers that all Government debts will be retired with LNG tax, crown debt retired, sales tax gone, bridge tolls and ferry fees all paid with LNG revenue, as well as new schools and hospitals, plus a prosperity fund with $100 billion dollars plus for future generations, all that wealth including monies for each gas community and First Nations...All that money to come from energy company`s pockets to Government coffers...Ahhhhh...now that is funny, energy companies making us rich...Really Christy...And you promised these energy giants the best taxation deal in the world..hmmm.

All that money, all those promises, yet not one ship is under construction at BC shipyards, not one shovel is in the ground building a LNG plant, not one company has committed, not one company has been given a sweet enough deal to build anything...That`s why Christy Clark is full of shit, all the BC Liberals are, if it was "a for sure thing" why travel to Asia..And what might you be selling Christy Clark?...Will you tell China that Chevron is building??/Or do you tell China that Chevron will decide in 2016 whether to build, or not....

What price will you sell LNG to China at Christy Clark????....What price will you offer for a product that isn`t produced in B.C. and won`t be for at least 6 years or more...What price will you sell this imaginary product at Christy????

Now do you see, Christy Clark can`t get a firm price selling pulled out of thin air products, she can`t sell contracts, she has nothing to sell but wishes, prayers and maybes or buts, ..Don`t you think Australia is selling real LNG futures, Africa, Papau New Guinea, Russia, Qatar...USA...

Now, time to burst a few LNG trial balloons..Petronas...Let me explain why the Petronas deal is going nowhere fast..

Petronas is a state company, the gas they own is at the wellhead...The pipeline they will own...they will own the LNG liquefaction plant...they will own LNG transport vessels..and they are their own customer..

Here is what Petronas is proposing to the BC Government...We own gas supply...we own the conduit to get it to the coast..we own the LNG plant and the gas produced is already sold..sold to ourselves, Petronas is the Malaysian Government, Petronas does not need energy buying contracts..

Get ready for this...Petronas wants to sell themselves the gas for as cheap as possible, thus avoiding taxation or paying as little as possible, a wink wink nod deal where Petronas plans to sell themselves LNG at virtually a on paper loss...Then what Petronas does with the gas after it has left B.C. is nobody`s business but their own..

When you start merging private companies with state-owned companies the lines get blurred..You tell me where B.C. could tell Petronas what price they can sell gas for to themselves??

You see, Petronas is not just a state-owned company, Malaysia the Government gets 50% of the entire country budget from the profits of Petronas the energy company...In other words, Petronas is not prepared to make everyone rich, they need the money to run a country....I don`t believe we could stop Petronas via tax law or regulation, if they own from well-head to end customer...and if you put a large tax on pure volume produced and shipped they won`t build..

Sources tell me that Petronas believes the one-time physical investment of building the infrastructure is benefit enough for the province of BC...And if BC demands more they will build nothing, that is the word from Petronas....And Petronas knows Christy Clark and the Liberal Government is stuck in a corner,...If they demand too much tax Petronas walks away, if the BC Liberals don`t offer more subsidies and gifts Petronas walks away...Petronas is using their investment dollars quoted in the media do their talking...(That`s why Petronas has announced this investment 6 times or more through various media over the last 2 years)

Let me be succinct, the energy companies want the world and more handed to them or they walk away, in no uncertain terms, these companies have told the BC Government that a little bit of money from projects built is better than a tonne of money from imaginary sources that will never exist...

Greed and human nature, Petronas doesn`t need customers, they provide the gas for their own people, the tens of millions of Malaysian people...The cheaper they sell gas to themselves or their subsidiaries, the more profit they make, wink wink nod, and do you believe the BC Government could mandate what price they sell to themselves for?

Just remember this....Private energy companies like Shell, Chevron and British Gas, EnCana, they make money from selling gas to countries and Governments, Petronas and Japanese National energy companies are in B.C. as countries needing energy and product, not private companies....Could Chevron selling LNG or Shell selling LNG....Could they compete with Petronas selling gas to JAPAN...OR Petronas selling gas to the MALAYSIAN Government?..

What is emerging is energy companies and buyers(countries) are both entering the same British Columbia LNG market, who is a buyer, who is a seller, they are now one of the same ..

Unfortunately our media is not prepared to ask tough questions, or ask why no one has built, or even started building any LNG plants, why is Christy Clark going to Asia and Washington looking for LNG investors...What is Christy Clark selling, $18 dollar LNG or $10 dollar LNG...will she have product to sell in 2020 or 2023?

No media available, no answers forthcoming, especially when no questions get asked...

The day I start basing my articles on nothing but tired rhetoric and a Government press release....If I can`t keep it real the time to stop writing is now.

 The Straight Goods

Cheers Eyes Wide Open


Anonymous said...

Our MILF is going to have to give a lot of blow jobs to see any LNG in this province. Resource revenue is already half of what it was when the BC Libs were elected in 2001. We are well on our way to giving it all away and paying someone to take it off our hands. All these business types, how stupid can you get.

Sukh Hayre said...

Well said.

ron wilton said...

Not to forget that this 'new' Petronas 'deal' engineered by herr harper is the selfsame company flying under the subsidiary flag (to decrease liability no doubt) as 'Progress Energy' which has been touted by Kernel Klink Koleman and miss fluff & puff herself as one of their scores.

I wonder how miss f&p feels about herr harper pissing on her parade.

Progress Energy will be remembered for using the Enbridge tactic of leaving large obstacles and industries out of their proposals.

Enbridge for clearing the Douglas Channel of it's islands and Progress/Petronas for removing the mile wide Skeena salmon river from the maps showing it's proposal.

G.W. Andrew said...

About That Shale Oil & Gas Miracle


Not a day goes by without a story in the MSM by some industry shill about the imminent energy independence of the Great American Empire. Shale oil and gas will revolutionize the American energy prospects. We have hundreds of years of oil and gas under our feet. We will be a net exporter in the next few years. A glorious future awaits. It’s all hype. Royal Dutch Shell is one of the biggest corporations in the world, with financial resources greater than 99% of all the organizations on earth. Their CEO probably knows a little bit more about oil exploration than the Wall Street systers and CNBC bimbos. His company has poured $24 billion into shale exploration in the U.S. It has been a huge failure. If Shell can’t make it profitable, who can?

Elwood said...

Grant, another excellent article exposing the criminal government propaganda and the complicit MSM. The lazy MSM write govt news releases with their names on them. Even schoolkids can write a better article. You should send this post to all the local, provincial, and national press in the country. Once they read this great analysis, they will be forced to wake up!

Grant G said...

Thanks Elwood..

The media won`t wake up, Governments pay the media to sleep, doze, snooze..

Is there no credible media who will look at the proposal, finetooth comb the plan..

It is well known facts on the ground..BC`s northeast sector is declining, drilling has nearly stopped, revenues from nat gas are a mere $200 million dollars this year, throw in ubsidies and gifts and we lost money on nat gas.

And the shipbuilding bullshit..I mean really, does anyone believe Harper would build research vessels and fishery patrol vessels, ..Are you kidding.

Harper don`t believe in sustainable fisheries or science..A mere photo-op...And all you have to do to see a vessel under construction is vote for Harper in 2015..Ships to follow.

Gawd is this promising things 2 elections away, promising contracts going out decades.

This is the new twisted Goebells propaganda.

And what do we get, boondoggles, promises unfullfilled, scaled down projects..

2011 Elwood..as of 2014 no ships under construction here or Halifax..

It is one sick game.