Canada Free Press: The original plan for the Canada East pipeline to reach Quebec and New Brunswick from western Canada, was to carry 1.3 million barrels per day of oil.
Based on the Wednesday price for the Canadian grade of WCS, Western Canada Select grade oil of $45.33 U.S., that 1.3 million barrels per day means 20 percent federal royalty to the government of Canada. Over half of Canada’s oil produced is of the lower priced WCS grade.
Based on today’s closing price of $45.33 for WCS, that 20 percent royalty means $9.066 U.S. per barrel for the federal government, plus royalty fees to each producing province. Each province also gets between 10 to 20 percent oil royalty fee.
The WCS price is posted in U.S. dollars but converted to Canadian dollars. at today’s 4 pm exchange rate, of $1.3278 Canadian. That means the royalty per barrel of $9.066 U.S. is $12.038 in Canada currency.
With the potential to carry 1.3 million barrels per day in the Canada East new pipeline, that means $15.6497 million CDN per day in federal royalty payments that have been missed because of Trudeau blocking the new pipe to the Montreal, Quebec city and New Brunswick refineries. more