Governments already subsidize energy transport by taking land away from its rightful owners -- usually productive farmers and ranchers -- and giving it to pipeline or power line companies.

Governments already subsidize energy transport by taking land away from its rightful owners -- usually productive farmers and ranchers -- and giving it to pipeline or power line companies.

 

It's called expropriation in Canada and Eminent Domain in the US.

 

This legal land theft is always an unwarranted intervention by governments as part of a politicized, central planning agenda designed to give politicians credit for economic development.  It is also often called "socialism for the rich."

 

Which is what the Notley NDP is up to in Alberta with their gift to TransCanada Pipelines -- a pledge to ship 50,000 barrels per day for two decades by the Alberta Petroleum Marketing Commission.

 

Our complaint is not with TCPL, who we do not expect to turn down the subsidy.  Our objection is that the Alberta government is picking winners in the marketplace and doing so with public resources.  

 

Not only should the Alberta government not be in the oil shipping business -- or even the ownership of oil -- it should not be involved in distorting the energy transport sector -- which includes pipeline landowners -- for political purposes.

 

The Notley government -- no friend to farmers and ranchers --   faces re-election in spring of next year and is seeking credit as a pipeline project booster.  This appears to us as a clumsy attempt at boosting their vote count after failing to defend Energy East or Enbridge's Northern Gateway projects -- and effectively conspiring with the Trudeau government to impose a punishing carbon tax in exchange for a "social license" to move oil that has not materialized.