Tuesday, October 11, 2005

Sask: It's all because of Grant Devine

SaskEnergy announced today that they are seeking approval for a 41 per cent rate increase for natural gas. According to Pat Atkinson (right), the NDP minister responsible for SaskEnergy, the massive increase isn't about increased demand for energy or the world price of oil, it's all about Grant Devine (for those who don't remember, Devine was the disastrous premier of Saskatchewan in the 1980s).

According to Atkinson, we can blame the high price of natural gas on the fact that Devine sold off natural gas fields in the1980s. She claims that if it weren't for that, we would be like the City of Medine Hat and own our own gas and everything would be great.

A few facts elude Atkinson. Grant Devine sold off gas fields back when oil companies were flaring off natural gas because it was worthless. Also, she forgets a little thing called NAFTA. Even if she achieved her dream of the government owning everything, we would still be paying the exact same price for gas that our neighbours in Alberta pay.

A great deflection for the government though, although it's getting really tired. Is Devine also to blame for out-migration, high taxes and slow job growth?


John Murney said...

Gee David, get with the game! Don't you know Grant Devine is responsible for all of the evil in the world, including flooding in New Orleans?!
Bizarre comments from Pat Atkinson, likely our next Premier.

Chad Moats said...

I think the point was that had Sask Energy still had control over the wells in the province that the crown would have much more flexibility in pricing. We are still paying less then the Mecca called Alberta.

Shawn said...

Christ help us if Pat Atkinson becomes premier. Alberta will grow by 100,000 within a year because of enterpreneurs and small business people seeking refugee status.

TonyGuitar said...

No matter what Grant Devine did. The fact remains that gas companies and governments do not want to mention that there are gas reserves to last us easily into the next cetury.

That does not take into account the extreme low estimate of 15 years of additional reserves of clean burning coalbed methane gas that Calgary-based Trident Exploration Corp is tapping into.

The futuristic Trident plant is only the industry's first.

Closely held Trident and Nexen Inc, along with a US first nations group, are moving to develope more Manville gas production by spending 400 million over the next 18 months.
Based on it's reserves size, there is an estimated 300 TRILLION cubic feet of potential gas reserves.
No wonder they don't want the general public to become too aware of these huge numbers. They want rates to be high enough to pay the Pipelines and pumping stations costs off in jig time.

A 41% hike simply means the greedy are really putting the boots to the little guy and the poor.

Isn't it in Lloydminster, where people drive a pipe down in the back yard and enjoy free heat and cooking gas?

Other companies about to move into Manville coalbed gas production are; CDX Gas LLC, Burlington Resources, EnCana Corp, Ember resources Inc.

This is fleshed out in fullet detail in a Canada.com News story, Sat. July 23rd/2005 datelined Fort Assiniboine Alberta.

The National Energy Board estimates CBM production could jump from 500 million cubic feet per day at the end of the year to more than three billion cubic feet per day in the next two decades

Calgary's First Energy Capital Corp says Coal Bed Methane projects need a natural gas price of $4.25 per M-cu.ft. for a 10% return or more. July 16th gas traded at more than $7.50 US.

Production costs for CBM gas are somewhat higher, but the 41% rate hike still seems too much, too abrubtly. 73s TG

Chad Moats said...

Good point and if it wasn't for the NAFTA, we wouldn't be forced to sell it at one price on the open market and the buy it back for a loss. Right now, we have to pay market price and places like NY, Chicago and Detroit have such a demand and the money to pay for it thus prices increase. It's all speculation. Gotta love the unregulated market, competition sure has brought us lower prices. Howrah !

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