About This Source - Bloomberg QuickTake: Now
Bloomberg L.P. is a privately held financial, software, data, and media company headquartered in Midtown Manhattan, New York City.
It was founded by Michael Bloomberg in 1981, with the help of Thomas Secunda, Duncan MacMillan, Charles Zegar, and a 12% ownership investment by Merrill Lynch.
Recent from Bloomberg QuickTake: Now:
Bloomberg Quicktake: Now published this video item, entitled “The Keystone XL pipeline Was Canceled in This Small Town. What Happens Next?” – below is their description.
With the Keystone XL pipeline canceled, Alberta doesn’t have any promising avenues for exporting more oil. Time to trace a post-oil future.
If Canadians were hoping for better times with a new man in charge to their south, they were quickly disappointed in at least one respect. One of President Joe Biden’s first acts after taking office was to revoke the permit for the Keystone XL oil pipeline.
The move wasn’t a surprise, but it dismayed national and provincial leaders north of the border nonetheless. It thrusts squarely back on their shoulders a problem that has dogged the province of Alberta’s oil and gas industries for decades — how to get what they produce to international markets. Alberta dominates Canada’s oil production and if it can’t develop its own export system, those riches risk being left in the ground.
The challenges to achieving such a thing are both geographical and political. Alberta is landlocked. In that sense it’s little different to Azerbaijan or Kazakhstan in Central Asia, or Uganda in Central Africa. While the territories between the oil sands deposits and the open seas may not all be foreign countries, what with Canada’s federal structure, they might as well be. And Alberta’s neighbors don’t share its enthusiasm for hydrocarbons.
Canada’s west coast would be the most obvious jumping off point for oil and liquefied natural gas exports to Asian markets. But stiff opposition in British Columbia has prevented Alberta’s oil and gas producers from taking full advantage of that opportunity. And, sadly, Alberta’s own politicians have refused to give other provinces much incentive to help out.
Back in 2012 I shared a platform with Ted Morton, then Alberta’s energy minister, at a conference organized by the Canadian Energy Research Institute. I was bemused to hear him say that because pipelines to the Pacific Coast were of national importance, it was the federal government in Ottawa’s responsibility to get them built, not the provincial authorities in Edmonton. Moreover, he said Alberta wouldn’t share its oil and gas royalties with British Columbia to facilitate transit accords. Every cent would stay in Alberta.
That seemed to me then, and still does now, a very short-sighted attitude. If Alberta’s economy was to rely on the extraction and export of hydrocarbons, then the Alberta government ought to have been doing all it could to facilitate getting the product to market. Yet giving British Columbia a financial incentive to host export pipelines was one tool Alberta never seemed willing to take out of the box.
Several years earlier, Paul Stevens of the University of Dundee in Scotland caught my attention at another conference when he presented a list of criteria for what makes a “good” transit country — or, in Alberta’s case, a good transit province. They relate to a territory’s ability to attract investment and the degree to which it can hold a pipeline and its users to ransom once it’s in operation. I’ve summarized them in the table below.Bloomberg Quicktake: Now YouTube Channel
Got a comment? Leave your thoughts in the comments section, below. Please note comments are moderated before publication.
In This Story: 2012
2012 is a film directed by Roland Emmerich and released in 2009. The film depicts a natural disaster in which the Earth’s core heats up, causes unprecedented solar storms and ultimately wipes out most of the world’s population in a major flood.
1 Recent Items: 2012
In This Story: Azerbaijan
Azerbaijan, the nation and former Soviet republic, is bounded by the Caspian Sea and Caucasus Mountains, which span Asia and Europe. Its capital, Baku, is famed for its medieval walled Inner City.
5 Recent Items: Azerbaijan
In This Story: Kazakhstan
Kazakhstan is the world’s largest landlocked country. It has a population of 18.3 million residents, and has one of the lowest population densities in the world. Since 1997, the capital is Nur-Sultan, formerly known as Astana. It was moved from Almaty, the country’s largest city.
Kazakhstan was the last of the Soviet republics to declare independence during the dissolution of the Soviet Union in 1991.
Kazakhstan is the most dominant nation of Central Asia economically, generating 60% of the region’s GDP, primarily through its oil and gas industry. It also has vast mineral resources. Kazakhstan is a member of the United Nations (UN), WTO, CIS, the Shanghai Cooperation Organization (SCO), the Eurasian Economic Union, CSTO, OSCE, OIC, CCTS, and TURKSOY.
2 Recent Items: Kazakhstan
In This Story: markets
4 Recent Items: markets
In This Story: Pacific
The Pacific Ocean is the largest and deepest of Earth’s oceanic divisions. It extends from the Arctic Ocean in the north to the Southern Ocean in the south and is bounded by the continents of Asia and Australia in the west and the Americas in the east