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For Your Information Magazine Speaks for Alberta Energy OligarchsThe online Oil Sands Magazine is a mouthpiece of the Alberta energy oligarchs who are integrated with a faction of the U.S. financial oligarchy. The magazine is not shy in describing and promoting the private interests of the energy oligarchy as evidenced in the following excerpts from the article "Why Venezuela is Alberta's biggest competitor." "Venezuela was once the largest supplier of heavy oil to the US. [Venezuela] took steps to liberalize its petroleum sector in the 1990s, allowing private investment into its oil and gas industry. [ExxonMobil, Total, Shell, Chevron and BP invested heavily in the Venezuelan oil sands producing heavy oil - TML Ed Note.] U.S. Gulf Coast refineries retooled their operations to accommodate this heavy sour feedstock, taking advantage of its discounted price. Imports to the U.S. [from Venezuela] peaked at 1.8 million barrels per day in 1997. "But in 1999, Hugo Chavez convinced the people of Venezuela they were being robbed by the greedy oil companies, dramatically raised taxes and royalties on new and existing projects. The government cannibalized its energy sector, diverting oil and gas revenues into social programs. Chavez began exporting more oil to Asia in an effort to diversify away from U.S. customers. Exports to the U.S. declined abruptly in 2002 . U.S. refiners who relied on this lucrative heavy oil stream went into panic mode, as their main supplier was dwindling fast." [The magazine fails to mention that the Venezuelan oil sector during this period suffered unrelenting attacks of sabotage and a growing refusal of U.S. and European energy companies to reinvest the value they expropriated from Venezuelan oil production back into the means of production. -- TML Ed. Note] "Alberta can thank Venezuela in part for the strong growth in oil sands production seen over the past years. Chavez's erratic behaviour sent many oil majors north to the safe haven of Canada. Although capital and operating costs are much higher in Canada, lower royalty rates, oil-friendly government regimes and excellent proximity to U.S. refineries made Canadian heavy a highly desirable replacement for the heavy sour Venezuelan crude the U.S. so desperately needed. "Oil majors like Shell and Exxon have long had a stake in Alberta's oil sands, dating back to the 1950s. Exxon, through its ownership of Imperial Oil, bet big on the oil sands, launching the behemoth Kearl Oil Sands Mine. French oil major Total bought its way into Alberta's oil sands through the purchase of Deer Creek in 2005, Synenco in 2008 and UTS in 2010. ConocoPhillips, who already owned 9 per cent of Syncrude, divested its mining assets in 2010 and moved its eggs into the thermal in-situ basket through a partnership with Cenovus. BP also joined the thermal in-situ parade, partnering up with Husky and Devon Energy in 2012.[1] "Not only do these projects produce the right kind of heavy oil, they also add significant long-life reserves to the company's balance sheets. Money flowed steadily into Canada. Heavy oil production, primarily exported to the U.S., rose proportionately as new facilities came online. Life was good in the oil patch. [The magazine presents only a half-truth. Money flowed into Alberta but also flowed out in the form of expropriated profit. The lower royalty rates and oil-friendly government regimes in Alberta have meant that very little of the new value oil workers have produced has stayed in Alberta to develop a diversified economy and for use as investments in social programs. The magazine denounces the Venezuelan governments of Chavez and Maduro for raising taxes and royalties on new and existing projects and diverting oil and gas revenues into social programs, which it calls, "reckless social spending." -- TML Ed. Note] "The election of a left-wing U.S. president in 2008 sent billions of taxpayers dollars flowing into renewables. The country's largest investment funds scrambled for a piece of the action, pushing the climate change agenda to ensure money would keep flowing their way." [Note that the magazine throws darts at pay-the-rich schemes for renewable projects, which have made billionaires out of left-wing politicians such as former Clinton Vice-President Al Gore but the same magazine constantly demands pay-the-rich schemes for carbon energy oligarchs such as themselves from oil-friendly government regimes. Two are Premier Kenney's $7.5-billion state handout for the Keystone XL project and Prime Minister Trudeau's $4.5-billion purchase of the Trans Mountain pipeline to Vancouver with more to come from secret talks underway between the federal and provincial governments. -- TML Ed.] "The U.S.-funded anti-fossil fuels campaign set its sights squarely on the oil sands and blocked all exits for Alberta's heavy oil. Canadian politicians joined the bandwagon.... Heavy oil production soon outpaced pipeline capacity, forcing crude onto expensive railcars, straining the profitability of Alberta's oil sands operations... "Many people believe Venezuela's government is far too unstable to attract foreign investment. To be fair, Venezuela's problems began long before the collapse in oil prices. Chavez's successor, President Maduro, is a leftist enforcer of his predecessor's outdated policies. Reckless social spending has rendered their currency worthless, resulting in a 700 per cent inflation rate.... "The quasi-democratic government has found
unlikely allies in the governments of China and
India, who are desperate for energy security. The
country has received serious cash injections from
China, estimated at $56 billion over the past nine
years, taking oil payments in lieu of cash." Note
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