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August 9, 2006

Crisis in Alaska: "And you, Brutus?", Wed., Aug. 9, 2006, 4:55 PM

I remember the old days when Canada was deeply divided politically at a time there was an energy crisis.

Yes, as a response to the crisis in the late-1970's, there was something called the National Energy Program (NEP) enacted in 1980 by the Federal Liberal Party in Ottawa.

There had been calls from Eastern Canada politicians to nationalize the Alberta oil fields so we in the East could manage to get through the winter with reasonable assurance of having oil. The natural response from Western politicians was the oft-quoted remark: "Let the Eastern bastards freeze in the dark".

"A popular western slogan during the NEP - appearing on many bumper stickers - was Let the Eastern bastards freeze in the dark. —Wikipedia"

Not very nice, but that's what happens to civilized people in a crisis.

So now that we've had a crisis of a similar kind, a few of us in Eastern Canada were wondering why gas prices had dipped -- not skyrocketed -- at the pump this week. Then I started to read a little more about how this BP pipeline " the one that's being shut down " delivers almost 15 pct of the supply needs of West Coast U.S.

Aha. Et tu, Brute?

Yes, maybe we'll hear a similar refrain from Californian politicians to take control of Alaska oil, and response from their peers in Alaska? "Let those Southern bastards freeze in the dark!"

Do you think?

In any case, here's a report from the UBS oil analysts about the situation. I'm sure there are more details coming out daily. Download file.

Posted by Posted by Bill Cara on August 9, 2006 04:55:01 PM | Category: 10 Energy , Cara Today in the Market

Discourse

See that headbutting between the Govenator and PM Blair? They maybe better prepared/-ing themselves.

Who Killed The Electric Car?

"thought experiments"
http://www.juancole.com/2006/08/one-ring-to-rule-them-wholesale.html

A Future Without Oil.

Posted by: pm2075 [TypeKey Profile Page] at August 9, 2006 5:19 PM [link]

Posted by: tinman [TypeKey Profile Page] at August 9, 2006 5:34 PM [link]

"The natural response from Western politicians"??

It was the "natural response" from people that were feeling the effects of being raped by Easterners/Liberals and the NEP!!!

When you feel as violated as Albertans did at that time, lashing out with “Let the Eastern bastards freeze in the dark� was all that could be done.

The slogan may not have been very nice but the question as to whether the Easterners or the Albertans were the "civilized people" is probably dependent on where you lived.

The ramifications of a NEP2 may result in more than a bumper sticker next time.

Bill, if you don't feel this is appropriate you are free to delete it. Obviously this hit a raw nerve.
Bob

Posted by: bobj [TypeKey Profile Page] at August 9, 2006 5:56 PM [link]

Bobj,

It's a great response, so why delete it?

Whenever I venture onto emotional grounds like this, I usually get reprehended because there are always two views. Most of the time, it's deserving, but I did say a "natural response". I didn't say it was the wrong response.

Had I lived in Alberta at the time, I probably would have voted for Separation.

We are a product of our environment, for sure. Sometimes we have to adapt, and look at the bigger picture.

In 1979 or 1980 I did a cross-Canada tour in a Winnebago where I stopped in 86 towns and cities in 90 days to give talks to some 5,000 local doctors about the subject of computers in the office/hospital. At the time (due to NEP), when introducing myself in Western Canada, I had to change my home address from Toronto to Cavan Ontario because too many Westerners didn't want to hear the word Toronto. I figured nobody knew where Cavan was.

Time usually heals.

Thanks for reading the blog. Feel free to comment at any time, in any way.

/Bill

Posted by: Bill Cara [TypeKey Profile Page] at August 9, 2006 6:30 PM [link]

i have heard reports recently that said bp neglected mainainence on parts of the pipeline for over 16 years. as a corporation they seem to profit in spite of themselves. the refinery accident in texas and now this. both of these stemming from a a lack of foresight to spend on maintaining equipment and training personnel. i live in california and anticipate much anger at bp when the reality that the alaska issue impacts us much more than other states. when the oil crunch wears off, either because of the expanded acceptance of alternative energy or supply source stabilization, bp's management will hinder the company due to its lack of ability to compete with better run companies.

however nationalization or profit capping on oil companies is not the answer. were citizens willing to pay more when the oil companies were struggling in the 90s?

Posted by: rick s [TypeKey Profile Page] at August 10, 2006 1:33 AM [link]