Memo to Minister Lunn - Firewalls Will Not Stop Pine Beetle.

Federal Natural Resources Minister Gary Lunn is reported to have said his goal is to stop the mountain pine beetle from moving east beyond Alberta. The MPB is already well established in Alberta by the way and is moving east quite effectively. The methodology Lunn intends to use is burning larges segments of the forest instead of letting the beetle eat it. Mighty clever Mr. Minister! Mighty clever!

Lunn is reported to being “committed” to spending another $50m “…to keep the beetle out of B.C. boreal forest,” (WHAT!!!) The MPB has already devoured 40% of the BC forest and conservative estimates indicate the tipping point has passed and likely 80% is gone. This is like watering the lawn after the tsunami has hit the house.

Mr. Minister burning “firewalls” will not stop the beetle. They migrate on air currents so they will just leap over your stupid firewall and continue on. The beetle rides on air currents and that is how they got into Alberta from BC in the first place. They managed to cross the Rocky Mountains on air currents for God’s sake…how is a firewall going to make any difference in the face of that reality?

Firewalls are effective at one thing, controlling the spread of forest fires. That is what they should be used for. The beetles leave vast areas of standing dead dry trees that are prefect for a lightening strike and a massive size and number of forest fires. Given that reality burning firewalls around forest related towns like Banff, Jasper, Grande Cache, Hinton, Edson and Whitecourt would make sense. Firewalls are needed to protect these towns from forest fires NOT to stop the spread of the beetles.

B.C dropped the Beetle-ball and now it is obvious the Feds are being stupid about what to do about the infestation. Mother Nature is not happy and she is showing it. Our species like all others in the forest have one intelligent and responsible response to the beetle…ADAPT.

Here is a Great Blog on the Alberta Royalty Review - "King Ralph Shilling for Big Oil."

I can’t say I always agree – or even agree very often - with fellow Alberta Blogger Eugene Plawiuk. But Boy oh Boy I have to admire his work on the post he just did on the Royalty Review Report and reaction to it.

This post is an example of the Blogosphere at its best. Great piece of work Eugene – I will read it carefully and with great interest - once I finish the report itself.


For those outside of Alberta - I suggest you will want to read the Royalty Review Report too. 60% of the billions being invested on oil sands development gets spent outside Alberta in the rest of Canada.

Claims of Oil Royalty Review Causing Market Meltdown is Bogus

Another update on oil patch stock market fear mongering from the Hunter Royalty Review Report is in order. The Royalty Review Report came out on Tuesday and the next day business press was rife with quotes and claims of a draconian disaster and a “tumbling” market for the energy sector

Yes there was a dip in some stock prices reported for companies like CNRL and Suncor. Well by Friday, in the face of a $.51 cent drop in oil prices the G&M reports that CNRL and Suncor were ranked #3 and #4 in the Market Lifter Index. The TSX was up 101.64 points on Friday and these two companies were jointly responsible for about 16 of those points.

As for CNRL –it shed 5.9% of stock value on Wednesday and on Friday the stock was up $1.64. Meaning it had recovered all but 1.5% of that pre-Royalty Review Report value decline in only two trading days and it is trading at $76.84 - only $3.14 off its 52 week high.

Some melt down.

Does Harper Have Any Sense of Humour?

Jane Taber of CTV and the Globe and Mail notes in her Hot and Not column this morning that Prime Minister Steve is rumored NOT to be attending the annual Press Gallery Bun Throw…AND in the PMO best Faux Fascists form, he has ordered all his Cabinet Member NOT to attend either.

Guess what all the dinner jokes are going to be about now. Guess which political leader will bear the brunt of the most barbs. Expect CPAC to tape it and rerun it more times than the Cons ever did for their paid for negative TV ads on Dion. No doubt the MSM media will run clips and the caricatures too.

Harper has been PM about 2 years now. He should know by now the “Parable of the Press” is that they giveth and they taketh away. The Cons being a total no-show at the Press Gallery Dinner is definitely Not Hot Steve. The Gallery will be sure to get even if you don't come out and play with them.

Besides a bit of humorous self-deprecation about now would be good for The Steve don’t you think? He may need it when Jack Layton sends him a reminder since their by-election win in Quebec the Dippers now have enough votes to save or cave the Cons. I wonder what Jack wants to see in the upcoming Throne Speech. I wonder if Harper shares my curiosity?

Oil Patch Fear Mongering is Very Removed From Reality

Business writers have been hyperventilating over the market impacts of the Hunter Royalty Review Report on oil sands share prices. Globe and Mail today has an example of an over reaction quotes: “Oil companies’ share prices have tumbled on investor concerns that incomes will be adversely affected and make future project less viable.”

A decrease in the TSX in the past day has been blamed on the Royalty Review Report recommendations as well. Horsefeathers! The Globe Index Drags today shows the cause was mostly by Research In Motion, three big Banks and Suncor was the only oil company reported. BTW, the smallest of these stock market "drags" only has a capitalization of over $31B.

Well yes some of the oil stock declined – more of a dip than a “tumble and only for a day. CNRL shares dropped 5.9% on Wednesday and the Chairman is leading the pack from the oil patch against the Royalty Review. BTW he is reported to own about $830,000,000.00 in CNRL stock so a 5.9% hit in one day hurts, "technically" but he is hardly homeless.

For the record CNRL stock rose $.21 or 0.2% yesterday and so far today it is up $1.73 or 2.29%. It has traded in a 52 week range between a low of $40.29 and $78.90. Still trading in spitting distance of its 52 week high is hardly a disaster for the company and its investors.

Albertans need to be sure the oil patch rhetoric over the veracity of the Royalty Review Report calculations tempered and evidence based. The facts need to be protected from the fantasies and the tenants need to start rethinking their roles and responsibilities to the resource owners…and show the owners a little respect too. They are citizens and therefore - voters. come to think of it, these same citizens may be shareholders in Alberta-based oil companies where they are voters too.