Alberta Liberal Leader David Khan and MLA David Swann issue the following release criticising the NDP’s deeply flawed railcar strategy.
Khan stated, “The NDP’s railcar strategy is scary shell game economics. Alberta taxpayers will be on the hook for $3.7 billion for the next 3 years. The potential benefit is a paltry $4 increase in oil prices for producers. It will move less than 1% of daily production by July. Some analysts say it creates tremendous risk with questionable return on investment for the Province.
“Most of the oil and gas sector is not currently pursuing a rail car strategy. In fact, shipment volume has fallen by over 50% just this month. Some companies say their rail shipments will be 0% in March. That is largely due to the NDP Government’s own production curtailment plan. So, why is the NDP Government plunging ahead with yet another new plan that contradicts their last plan?
“The current price differential is about $14 for Western Canada Select (WCS). That would make current rail shipments uneconomic for most oil companies. How can the NDP predict the WCS price for this July or July 2020 or July 2022?
“Another possible solution will soon be available which won’t burden Alberta taxpayers with more massive debt. The Line 3 replacement pipeline is coming online this fall. It won’t cost Alberta taxpayers a penny.
“The NDP are short on details. They are not explaining who the oil buyers will be. They are not explaining which export markets will be filled. There are concerns about rail safety and the impact on grain shipments. Albertan taxpayers deserve more answers with $3.7 billion on the line.”
Swann stated, “We need a more focused long-term approach instead of short-term reactionary policies. We need to focus on building a pipeline to tidewater. We need to develop a welcoming investment climate. We don’t need a scrambled-together batch of NDP pre-election pronouncements.”
Khan added, “The NDP’s strategy seems thrown together to score political points. It looks a lot like election campaigning to win votes using billions of our taxpayers dollars. Albertans won’t be fooled.”
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