LMT July 23 2018

10 Last Mountain Times • Monday, July 23, 2018 • lmtimes.ca
They say a picture is worth a thousand words. Here’s that picture.
-photo taken at LMRP on the evening of July 18 by Lynn Gettis
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budgeted goal of $180 million. Over the past five years, the sector has contributed
$1.3 billion in dividends to the GRF.
The report says Crowns continued to address infrastructure renewal and improvement
in 2017-18, investing $1.6 billion in capital projects, and have forecast
an average $1.4 billion per year over the next five years to meet the province’s
demand for safety, growth and renewal. The Saskatchewan Transportation Company
(STC) also tabled its 2017-18 annual report last week. The report reflects
the final period of vehicular operations and the results of wind-up activities for
the period ended March 31, 2018. Total net proceeds from the sale of vehicles,
equipment, land and buildings up to March 31, 2018 were $27.6 million, resulting
in a dividend payment of $22 million. Negotiations on one final property sale are
ongoing. The balance of net proceeds will be provided as a dividend upon dissolution.
-media release
OBITUARY
PANKO - Avril Susan
(nee Cardiff)
May 24, 1947 - July 19, 2018
Avril Panko passed away peaceful on July 19, 2018 with
her family by her side. Avril was born in Nokomis, SK. She
grew up in Govan, SK and later settled in Regina. Avril is
predeceased by her parents, Jim and Vera Cardiff, and her
brother, Bruce. Avril’s memory will be carried on by her
husband Gary and her four children; Kyla (Mike) Kelly, Brad
(Saffron) Panko, Bree (Phil) Panko McDermott and Jeff Epp.
She will be lovingly remembered by her grandchildren: Andrew
and Carter Kelly; Jacob, Ethan and Mason Panko; Gus
and Judd McDermott; and Kendall and Delaney Epp. Avril
will be forever missed by her sister Edie (Lorne) Tarasoff
and their children Nathan Tarasoff and Avril Skolney.
Through all of her community service and social activities she leaves a number of
friends and great memories. She will be remembered for her creative endeavours in
life and her unwavering support for her family.
A special thanks to Jodi, manager of 5A General Hospital, and the staff for their
care and thoughtfulness. In lieu of flowers, please consider a donation to the Alzheimer’s
Society.
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ber of costly constraints on the energy sector, including an overdependence on the
U.S. market and increased reliance on more costly modes of energy transportation.
These constraints have contributed to depressed prices for Canadian heavy
crude (Western Canada Select or WCS) relative to U.S. crude (West Texas Intermediate
or WTI), and other international benchmarks.
Because of Canada’s lack of pipeline capacity, oil producers have been shipping
their crude by rail, a more costly mode of transportation. So oil producers absorb
higher transportation costs, leading to lower prices for Canadian crude.
Depressed prices for Canadian crude result in lost revenues for Canada’s energy
sector and the economy more broadly. According to a recent study, between 2013
and 2017, insufficient pipeline capacity - and the associated depressed price for
Canadian heavy oil - resulted in $20.7 billion of foregone revenues for the sector.
This significant loss equals almost one per cent of Canada’s gross domestic product.
Canadian heavy oil producers are estimated to lose another $15.8 billion this
year in revenues compared to what other producers of similar products receive.
That’s roughly another 0.7 per cent of our national economy lost because we can’t
deliver our product to international markets and secure better prices.
This loss of revenue has far-reaching effects for Canadians. It means less investment
and less opportunity, with lower levels of job creation and ultimately less
overall prosperity.
The approval of the Line 3 replacement project is, therefore, a step in the right
direction. It will allow Canadian oil producers to increase export capacity to the
U.S. and mitigate costly transportation constraints.
However, Canadian crude oil producers will still export their products to the
United States, which will further exacerbate overdependence on the U.S. market.
Nearly 99 per cent of Canadian heavy crude is exported to the U.S., meaning the
U.S. is essentially Canada’s only export market.
Given soaring U.S. oil production in recent years and competition from American
producers, finding new customers for Canadian heavy crude is critical. To do
this, Canada clearly needs to build pipelines to tidewater - the Trans Mountain
expansion - to deliver oil to Asian markets.
The Enbridge Line 3 pipeline approval will help relieve the transportation bottlenecks
and raise the price of Canadian heavy oil.
However, Canada really needs to reduce reliance on the U.S. by accessing new
markets, and building the Trans Mountain expansion is key to achieving that goal.
-Elmira Aliakbari is associate director of Natural Resource Studies and Ashley
Stedman is a senior policy analyst at the Fraser Institute. www.troymedia.com
Disclaimer: opinions expressed are those of the writer