Did you know the Canadian government had a multimillion dollar advertising campaign in Washington DC informing the US that they should approve the Keystone XL pipeline because it would provide 10's of thousands of refining and spin off jobs? What about at least upgrading or refining it here? I'm not against using the stuff myself (love diesel in the boat & all) but shipping raw bitumen is like shipping raw logs, Tar Sands style.
My problem isn't necessarily the product itself, it's that we're shipping jobs overseas.
Activists (and journalists, it seems) like to conveniently group everything under the banner of Big Oil. I suppose this is to make the target big enough that anything they throw at it will hit. In reality, the oil patch consists or Upstream, Midstream, Downstream sectors which is quite fractionated by multiple companies. Upstream, gets the hydrocarbons out of the ground. Midstream stores and transfers products, Downstream processes the hydrocarbons into various products for sale by end users. The integration of streams in one company is rare, if even existent. Historically, refining capacity is slightly more than product demand.
I’ll try this analogy out for you...
Farmers grow grain. They are upstream. The deliver it to elevators who elevate, clean, store and transport it by rail, trucks and ships. This is midstream. The grain is milled into flour, and another company may make bread out of to eat. This is downstream.
Why isn’t more bread made in Canada? Where is the outrage at the farmers for not building more bakeries? Because a.) Farmers don’t make bread. b.) Bakeries are capital intensive. Neither farmers, nor railroads, nor elevator companies want to employ the capital to build a bakery, as it is not their core specialty, and the demand is already met. c.) Even a farmer, CN Rail, or Richardson International did build a giant bakery for bread export, a new supply chain infrastructure would have to be created to get it to the end user.
I`m not saying this can't happen. Cargill is a company that is integrated through the food chain, and has fantastically deep pockets. But if the motivation is not there, why would they?
Same goes for refinery.
I just made this analogy up. Poke holes in it. I want to use it in discussion with my left leaning Brother in Law farmer.
PS: I like whales. I heard they were in the area on Monday, so I was looking for them on my flight from Vancouver back home the other day, but alas, it is getting dark too soon these shortening days.