Trans Mountain Pipeline(TMX) #1 reason for failure.

[kanedog]

This is from the last six years of personal experience dealing with TMX as I have the Tmx pipeline crossing my property. It is hard to get this raw info from any other source. I’ve lived and I’m living it. It’s a nightmare.
1. Tmx is cheap af. If they would simply make it rain for communities, the environment and landowners, I estimate they would have over 90% support.
Do proper environmental studies(they have not), have 100% working spill response plans(they do not), restore and further enhance the environmental damage done back in 1954 by the original pipeline and establish huge social license network.
2. Tmx is using fine print and manipulating the old agreement and Canadian Energy Regulator rules from 1954 and applying present day. This has pissed people off to no end.
3. Tmx threatens to put in the pipeline in anyway if landowners don’t sign the agreement. See the attached letter. Govt bullying at its finest.
4. Tmx is slimy af. Their plans are not transparent at all.
5. Tmx is gonna replace the original pipeline when installing the new one. The old one is 60years old and it would be really dumb to mobilize equipment again in five years from now.
6. They are offering 10% of actual land value.
7. At 900,000 barrels/day at $100/barrel, the money is $90,000,000/day income. On a hundred year projection, landowners will receive $2.50/day while Tmx rakes in $90,000,000+ per day. Landowners assume all risk, Tmx assumes nothing. Tmx claims their compensation is “fair and equitable.” What a joke.
Anyways, until they throw money at every person involved it’s gonna be a rough ride. It could cost someone the election.
That’s what’s happening. Woohoo

 

[doorfx]

Attached letter?

 

[Bnorth]

Oh look someone else doesn't understand the difference between revenue and profit.

 

[gunner3006]

So I have been helping my parents with 2 pipelines crossing there farm for over a year now. It is very evident that the personal trying to close this deal is working on a performance based salary. Let me be perfectly clear here. The energy sector cares nothing about you nor will they ever. If you are an end user, be very cautious in the paperwork you sign and the amount of money you agree on. None of them want to deal annually now. They want a one time shot and that’s it. In the end Kanedog, they will have to make it rain. There will be no other option. As much money as there is in the oil and gas energy sector there is an equal amount in green peace, aboriginal rights, environmentalists, tree huggers, not including the money tied up in climate change, carbon taxing. Yes, I live in Alberta. Yes I benefit from oil and gas. But make no mistake about it. It takes them no time at all to pay for a pipeline once it’s put thru.

 

[kanedog]

Oh look someone else doesn't understand the difference between revenue and profit.

Oh look, at $90 million per day revenue it will take 88 days to payback an $8 billion pipeline cost. 88 freaking days! I’m sure the operating costs are gonna be real close to revenue. Come on man. Do the math.
Cool factor-a loaded tanker holds about 2 million barrels. At $100/barrel, a loaded tanker is carrying $200 million worth of cargo. They gonna be loading 15 tankers a month in Vancouver. I’m so excited about receiving $2.50/day for 2 big ass pipelines across my property.

 

[Stompin Tom]

me thinks you gotta work on your facts. There is no way in hell they are getting $100 per barrel to transport oil in the pipeline. That is far more than the delivered product is getting on the open market.

 

[DRD]

Thought TMX just got paid to transport the oil, not dig it out of the ground and process it for shipment. They aren’t getting 100 buck to push it through a pipe.

 

[kanedog]

Ok, who owns the oil then? Somebody’s making 90mil/day. You don’t think whoever buys the pipeline from Canada is gonna own or have a piece of the oil going through the pipeline?
This thread is about why the Tmx is a bumblefack so far. It’s a given there is so much money that my Iphone calculator doesn’t go high enough to figure it out. Now that’s mind boggling.

 

[snochuk]

Cost to pipeline a barrel of oil to market is between $4-$5 depending where it goes to.
Rail is $12-$15 just in case some one wants to compare how stupid rail is.
O ya rail follows major river valleys across BC - lets just have a derailment and tell me how that turns out.

Pipelning oil is not $100 a barrel

 

[imdoo'n]

oil is definitely not trading at $100 a barrel,


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[catalac]

Indeed when every Tom dick and Harry has to be satisfied to the n’th degree all while holding up revenue for 35 million people squat gets done.

 

[kanedog]

That is correct. It is not $100cdn/barrel, it is $75cdn/barrel. It has been up to $150usd/$195cdn in the past. The world oil consumption is not decreasing at all. The population is increasing, the world consumes oil. How much is it gonna be in 5,10, 20 years? 50 years? A frickin lot, that’s how much. Look past today, look to the future. The answer is there.

 

[Caper11]

Facts are not the same as opinions, do not confuse the two.

Popcorn anyone???

 

[kanedog]

Cost to pipeline a barrel of oil to market is between $4-$5 depending where it goes to.
Rail is $12-$15 just in case some one wants to compare how stupid rail is.
O ya rail follows major river valleys across BC - lets just have a derailment and tell me how that turns out.

Pipelning oil is not $100 a barrel

Well you can take of $4,500,000/day or 1.6billion/year to transport it at $5 barrel. 5 years to pay off 8 billion. What a terrible deal. I think a citizen takes takes 25 years to pay off a mortgage.

 

[kanedog]

Facts are not the same as opinions, do not confuse the two.

Popcorn anyone???

I attached a letter from Tmx. 100% fact right there.
In addition to providing facts, I also posted my opinion on how to get this pipeline built.
I’m waiting for your idea how to get this pipeline done. Let’s hear it. The floor is yours.

 

[new_nytro]

Using kanedog’s logic every gas station in BC should be making it rain free pop, chips, and cigarettes because they are making $1.50 a litre on gas...

 

[Stompin Tom]

Well you can take of $4,500,000/day or 1.6billion/year to transport it at $5 barrel. 5 years to pay off 8 billion. What a terrible deal. I think a citizen takes takes 25 years to pay off a mortgage.

yeah, great deal, if you have no costs and everything is pure profit towards debt service.

If you paid every cent of every dollar you earned for the next 5 years you as well could most likely pay off your mortgage.

 

[kanedog]

Using kanedog’s logic every gas station in BC should be making it rain free pop, chips, and cigarettes because they are making $1.50 a litre on gas...

That’s not the point. The point is that in order to persuade the public to support the Tmx project, they need to load people up with money. Not only landowners, but environmentalists, indiginous, enhance fisheries/environment and have emergency response working plans. They have done none of the above. There is no benefit to anyone yet. Nothing. Nada. How they ever thought this approach would work is beyond me.

 

[pfi572]

https://altex-energy.com/economics-of-rail-versus-pipeline/

 

[snochuk]

Well you can take of $4,500,000/day or 1.6billion/year to transport it at $5 barrel. 5 years to pay off 8 billion. What a terrible deal. I think a citizen takes takes 25 years to pay off a mortgage.

$4-5 a barrel is their gross income.
After infrastructure maintenance/upgrading, salaries, general business cost I doubt the net profit is more than $1-2 bbl
Just saying it is profitable but not a diamond mine.