I am finding it funny how so many have dropped down in to a state of denial over the effects of the NDP have on Alberta to this point. All you read in Social media is that the “NDP has no control over the price of oil and that is what is causing this current down turn” And to a point this is true in the case of exploration and development of conventional oil but it’s a complete misunderstanding of the unconventional side the oil Sands. Now for those that don’t know the oil sand employs around 22,000 directly and around 250,000 indirectly around Alberta in supply and manufacturing. Now when a project is set up for the oil sands it’s usually a year or two ahead of the start date of the project and then the project can take 3- 5 years or longer to complete.

So with that said the manufacturers start building the products to be used on site in shops all around Alberta and even Canada in some cases since there is a nice chunk made in Ontario. These companies start manufacturing the parts required now for those parts to be installed over the next few years on site. And then in 3-5 years the project will come on line and THEN only THEN does the price of oil actually affect the project. This is the part most are missing the price of oil has nothing to do with the manufacturing end of the oil sands and that is the part that is being effected by the inaction of the NDP the most and causing the lay offs of thousands in Alberta’s manufacturing sector. To date a loss of 42 billion in projects that have been shelved for 4-5 years projects that in April were a go. Also note the time frame of the shelving there is a reason 4-5 years and if you think about the time frame to the next election it becomes clear.

As an example I will use Nisku the second largest industrial park in North America and a central point of Alberta’s oil sands manufacturing but this is happening all around Alberta in small towns and big city’s alike. Leading up to the election the park was in full swing and projects were being set up and products were being sourced as they have been for the last 15 years with every thing being needed yesterday. Since the election there has been a 60% drop in activity in the region and in all manufacturing in Alberta that is related to the oil sands. The reason for this is uncertainty in a number of areas like Taxes, Royalties, modes of transporting the raw product out of the Ft Mac area and off to market as well as the lack of willingness of the NDP to protect the investments made as demonstrated by the ongoing bashing of the industry by both provincial and federal members of the NDP. Now I am sure some of you are asking “How can this jack off make these claims?” well its easy I am a general manager of the third largest industrial supplier in the world as well as the primary supplier to the oil sands and strong market share holder of the rest of Alberta’s manufacturing sector. Simply put if they use a shovel to dig a hole in the oil sands we supplied it the bolts they use to bolt the valves together again we probably supplied it same as the safety glasses or the fitters gloves. This makes me privy to the day to day operations of these company’s since in most cases we are integrated directly in the companies business like in the oil sands where we have three branches located in the mine site servicing all aspects of the operation exclusively. So yes I have insider knowledge and since just after the election I have been called into dam near every one of my customer’s locations to be informed that this project or that one has been put on hold or even just canceled outright its first hand knowledge.

In almost every case the reasons I listed above were the ones given to me by these companies in the meetings I have had and I have yet to hear a single one of my customers state it was because the price of oil today. I will state this again it has jack all to do with the price of oil today when these projects will not even come on line for years yet why the hell would they care what the price of oil is today when these projects wont produce oil for another 5 years? So next time some dipper no mind barista tries to tell you its not the NDP’s fault just bring this little fact up and watch their heads explode because so far all I have seen from dippers is that when you confront them with facts they grow silent and or belligerent either way you might just get them thinking and that can only be a good thing.