Money: Q&A: What it really means for Alberta to 'turns off the taps' on oil to B.C. - - PressFrom - Canada
  •   
  •   
  •   

MoneyQ&A: What it really means for Alberta to 'turns off the taps' on oil to B.C.

12:50  02 may  2019
12:50  02 may  2019 Source:   cbc.ca

‘Stay tuned’: Jason Kenney to proclaim ‘turn off the taps’ bill, won’t use it yet

‘Stay tuned’: Jason Kenney to proclaim ‘turn off the taps’ bill, won’t use it yet "I've been clear it is not our intention to reduce shipments or turn off the tap at this time," said the Alberta premier.

Alberta Premier Jason Kenney now has the political authority to " turn off the taps " on oil and gas exports to British Columbia should he choose to do it . Kenney himself cautioned the measure would only be used as last resort should the B . C . government stay the course in trying to block development.

How would Alberta ' turn off the taps ' if the new law is used? " It will give the Alberta government the authority to control what's flowing through the pipeline and in what volume. So basically the producers or the shippers will have to apply for a license that would stipulate what product is being shipped and

Q&A: What it really means for Alberta to 'turns off the taps' on oil to B.C.© Dennis Owen/Reuters Steel pipe to be used in the oil pipeline construction of the Trans Mountain Expansion Project sits on rail cars at a stockpile site in Kamloops, B.C., in May, 2018.

Alberta Premier Jason Kenney now has the political authority to "turn off the taps" on oil and gas exports to British Columbia should he choose to do it.

Kenney confirmed Wednesday that the legislation has been proclaimed into law — though B.C. moved quickly to dispute his legal ability to actually use it.

Kenney himself cautioned the measure would only be used as last resort should the B.C. government stay the course in trying to block development of the Trans Mountain pipeline expansion.

Jason Kenney cites ‘deep frustration’ as Alberta’s ‘turn off the taps’ law is proclaimed

Jason Kenney cites ‘deep frustration’ as Alberta’s ‘turn off the taps’ law is proclaimed "We will never be afraid to stand up for Alberta," Kenney states in an editorial announcing the move.

What it really means for Alberta to ' turn off the taps ' on oil to B . C . In the wake of the decision, Alberta 's minister of energy is banned from " turning off the taps " until a full review to determine whether the legislation is constitutional is completed.

EDMONTON — Jason Kenney, the soon-to-be premier of Alberta , rode to victory vowing to implement policies that would empower the province to fight back against its foes. Among them was Kenney’s promise to “ turn off the taps ” to British Columbia.

For now, the possibility of closed taps might feel a little distant.

But what if the Alberta government did eventually act? What if all the constitutional tests tilted in Alberta's favour?

CBC News asked Dinara Millington, vice-president of research at the Canadian Energy Research Institute, to explain what it could really mean for Alberta to "turns off the taps" to B.C.

The interview has been edited for length and clarity.

Q&A: What it really means for Alberta to 'turns off the taps' on oil to B.C.© CBC CBC

Are there "taps" to be turned off?

"No, there is no actual physical taps that say Refined Petroleum Products to B.C. — turn that off. No, there are no actual, physical taps."

How would Alberta 'turn off the taps' if the new law is used?

"It will give the Alberta government the authority to control what's flowing through the pipeline and in what volume. So basically the producers or the shippers will have to apply for a license that would stipulate what product is being shipped and what volume. Then the government will have the decision to make whether that's going to be allowed through or not.

Trudeau taps veteran Jeremy Broadhurst to run Liberal re-election campaign

Trudeau taps veteran Jeremy Broadhurst to run Liberal re-election campaign OTTAWA — Prime Minister Justin Trudeau has turned to veteran Liberal Jeremy Broadhurst to run the governing party's bid for re-election this fall. Broadhurst, who is currently serving as chief of staff to Foreign Affairs Minister Chrystia Freeland, is to take on new duties as national campaign director by May 13. The appointment signals an attempt to reach out to long-time Liberals, some of whom have privately grumbled that their experience has

If Alberta Premier Jason Kenney really does use Bill 12 to stop the flow of oil to British Columbia, more than just gas prices are at stake, experts say. That means the bill would not actually “ turn off the taps ,” he said, but would rather reduce the flow of fuel products. The bill would require businesses to

CALGARY — A Calgary judge has denied British Columbia’s attempt to block Alberta legislation that would allow that province to stop oil shipments to the coast. In a decision released Friday on the so-called Turn Off the Taps bill

"What's most likely going to happen is the squeezing out of certain types of crude or refined petroleum products to British Columbia — so, altering the mix of products that flow down the pipe. That could sort of induce that market discomfort in B.C. I don't think it's going to cripple the market but there will be an overall market discomfort.

"If more heavy crude or conventional light crude is being shipped, that might squeeze the room for refined petroleum products like gasoline and diesel, for example, that's being shipped to British Columbia."

How big would the effect be on B.C. consumers?

"The effect on consumers in B.C. would be through the relationship of supply, demand and pricing. And if your supply is going to shrink and demand is going to continue to be the same or even grow, you can imagine there will be an immediate price impact.

"Probably the most impacted portions of the B.C. economy would be those businesses and individuals that do not have the ability to switch fuels.

John Horgan reacts to Jason Kenney's comments as B.C. signals intent to fight 'turn-off-the-taps' law

John Horgan reacts to Jason Kenney's comments as B.C. signals intent to fight 'turn-off-the-taps' law Alberta's Premier Jason Kenney is blaming B.C's obstruction of his province's oil and gas industry — specifically to the Trans Mountain expansion — for $1.70-per-litre gas prices in the lower mainland.

Alberta Premier Rachel Notley is threatening to turn off the oil taps in a fight with British Columbia over the Trans Mountain pipeline expansion. Alberta has already imposed and pulled back on a ban of wine from B . C ., but Notley said the government will not stand for further delays and harassment.

Can Alberta really ‘ turn off the taps ’ to B . C .? Here’s what we know about Jason Kenney’s plan. Hall said it ’s clear from Kenney’s comments in the legislature that the law is meant to squeeze Alberta ’s western neighbour. “ It ’s to lay some hurt on B . C . and so the government of B . C . says, ’I’m

"If you're driving a vehicle, you're not going to go out and buy an [electric vehicle]. You might, but that's an investment that takes time. Another sector that I can see that would be heavily impacted [would be] forestry and agriculture and even the mining sector because they're very dependent on diesel fuel and they don't really have a lot of other choice to switch the fuel."

Q&A: What it really means for Alberta to 'turns off the taps' on oil to B.C.© Denis Dossman/CBC Denis Dossman/CBC

What impact could this have on Alberta refineries?

"Alberta refineries that do supply a certain amount of volume to the market, they would have to find another market segment where they can sell their products to. The Alberta domestic consumption market is not large enough to absorb all that volume. So if refineries cannot find homes for their product, they'll be definitely impacted — and the impact will be on their margins."

When the taps are turned back on, how quickly would the situation be rectified?

"As the supply sort of returns back to its normal conditions, I would say you will see an immediate impact on price.  Outside of the overall market segment, the relationship between the governments and things like that might be impacted.

But in my opinion, the Alberta government, B.C. government and the feds should find a compromise to the situation instead of risking the escalation of the situation."

Read more

B.C.'s request for injunction against Alberta turn-off-the-taps law delayed 1 month.
B.C.'s request for an injunction against Alberta's Bill 12, which would allow the province to restrict shipments of oil and gas to B.C., has been delayed one month. B.C. Attorney General David Eby's office confirmed the hearing has been tentatively rescheduled for June 6. The hearing was originally scheduled to be held at the Calgary Courts Centre Tuesday morning. Alberta Premier Jason Kenney enacted the bill into law on April 30, shortly after he and his new cabinet were sworn in. In response, B.C. filed legal paperwork at Alberta's Court of Queen's Bench for an injunction and constitutional challenge on May 1.

—   Share news in the SOC. Networks

Topical videos:

usr: 1
This is interesting!