She's a very smart lady . . .  she's enticing the oil industry to switch their   
   focus from extraction of oil and gas for export to manufacture of goods.  And   
   what corporation doesn't like 'royalty credits' where they had to pay   
   royalties before?   
      
   This could well be the way to turn around other polluting, exporting,   
   subsidy-gobbling industries that have no future in coming decades.  And   
   imagine if Alberta finally weans itself off extraction of dirty oil and starts   
   to contribute to the Canadian    
   economy, instead of to shareholders' profits.   
   ___________________________________________   
   Canadian Press | Feb 1, 2016   
      
   Alberta aims to diversify beyond energy extraction with new program   
      
   CALGARY - The Alberta government aims to create thousands of jobs and reel in   
   billions in investment by providing $500 million in royalty credits to the   
   province's petrochemical sector.   
      
   The Petrochemicals Diversification Program announced Monday is one example of   
   how the NDP government aims to encourage more value-added processing in   
   Alberta -- turning raw materials into more lucrative products within the   
   province rather than shipping    
   them elsewhere.   
      
   "We understand that to create long-term sustainable jobs, we need to diversify   
   beyond just energy extraction into other areas of strength," said Economic   
   Development and Trade Minister Deron Bilous.   
      
   Alberta's petrochemical industry has a tough time competing with Texas and   
   Louisiana because of higher construction costs, he said.  The program seeks to   
   narrow that gap and attract investment.   
      
   The initiative will focus on two types of natural gas: methane and propane,   
   which can be used in the manufacturing of fertilizers, plastics and other   
   products.   
      
   The government said it expects 3,000 jobs during construction and 1,000   
   directly and indirectly once plants start up.  It said there's the potential   
   for two or three new facilities to be built in Alberta and investment of   
   between $3 billion and $5    
   billion.   
      
   Ed Gibbons, who chairs Alberta's Industrial Heartland Association, said the   
   program is good news for the Edmonton area, which is home to numerous   
   petrochemical plants and refineries.   
      
   "We anticipate that today's announcement will provide the tipping point for   
   investors with the scale now pointing toward Albertans' direction," said   
   Gibbons, an Edmonton city councillor.   
      
   The credits will be paid out over three years once the projects are complete   
   in an effort to reduce risk to government.  The idea is for the petrochemical   
   companies to trade or sell the credits to oil and natural gas producers, which   
   can use them to    
   offset their royalty payments to the province.   
      
   One recommendation from last week's royalty review report was to examine ways   
   to encourage more investment in facilities that turn raw resources into more   
   valuable products.   In addition to natural gas, the expert panel also   
   recommended looking at ways    
   to make higher-value products out of oilsands bitumen.   
      
   The application process for the program opens this week and will close in   
   April. Bilous said shovels could hit the ground this year.   
      
   University of Calgary economist Trevor Tombe said there are times when   
   government subsidies are justifiable -- but this isn't one of them.   
      
   "If a facility is not able to compete in the market on its own grounds, then   
   -- absent a market failure _ a subsidy will actually lower GDP," he said.  "It   
   will actually harm the economy."   
      
   At a time when the province is contending with a hefty budget deficit, it's a   
   questionable spending choice, Tombe said.   
      
   "Things like child care or education, health care, homelessness support --   
   these are areas where subsidies can be justifiable on social policy grounds.    
   Dollars spent on the petrochemical industry means those are dollars that can't   
   be spent in other    
   valuable areas."   
      
      
   http://ipolitics.ca/wp-content/uploads/2015/10/CP-oilsands-image.jpg   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)