The Oil Drum

Dried-up Arctic ponds evidence of global warming, study says

A University of Alberta scientist has uncovered dramatic evidence of climate change in the Arctic, where ponds that have been part of the landscape for more than 6,000 years are drying up as global warming has nearly doubled the length of the brief northern summer.

Trust tax linked to private equity buyouts

The income trust structure was a major impediment to private equity firms buying up pieces of Corporate Canada, the Finance Department was told one day before Ottawa slapped a crippling tax on the sector.

"Private equity firms generally find it difficult to compete against the income trust alternative, said an Oct. 30, 2006, memo sent to Bob Hamilton, senior assistant deputy minister of tax policy at the Finance Department.

The memo was obtained by The Globe and Mail under access to information law.

For anyone at Finance who knew the trust tax was imminent, one conclusion that's easily drawn from the memo is that taxing trusts out of existence would likely usher in even more private equity buyouts by Canadian and foreign investors, which is what happened.

What Price Victory? (scroll down)

It’s reasonable to assume that, as professionals operating within a government department nominally charged with understanding affairs of finance, the folks working for Flaherty would have some rudimentary understanding of the way key players in the private space—private equity, for example—operate.

That is private-equity firms find undervalued, cash-generating businesses, strip them down and load them up with debt. Interest expenses basically wipe out taxes owed. That’s the nutshell.

What was that about “tax leakage”?

Either the professionals have no clue about their business, or they engineered the destruction of the trust sector. Secretive, incompetent and stupid is no way to run a government.

World oil production has maxed out: Talisman

Talisman chief executive Jim Buckee has never been one to shy away from controversy.

An astrophysicist, Buckee was one of the first energy industry executives to challenge the precepts of global warming and the subsequent demonization of all greenhouse gas producers -- a position that earned him the ire of the environmental lobby.

An adventurer, he took his company into one of the most controversial oil plays in the world -- Sudan -- believing it was a good thing, financially speaking, for the Calgary-based explorer. Some industry analysts believe that decision earned the company a stock market backlash, even though Talisman exited Sudan with a healthy financial gain over four years ago.

So when Buckee suggests, as he did at Talisman's annual meeting Wednesday, that Peak Oil has arrived, we are not completely surprised -- even if that observation is likely to again land him in the eye of a storm.

The nuclear option

Sensing some reluctance from the crowd, Hawthorne later slips into passive-aggressive salesman mode. "I'm not here to sell you a nuclear plant. If you don't want a nuclear plant, I don't want to be here."

But he does want to be there, and he is selling something the idea that a nuclear renaissance is upon us, that emission-free atomic power will save local economies, keep global warming in check and pave the way to a nuclear-based hydrogen economy. The message in a nutshell: the construction of new nuclear plants in Canada is inevitable.

Nuclear power, once shunned, is back on the table in Canada and around the world. Its image as a risky, expensive, dangerous technology amplified by the Three Mile Island accident and Chernobyl disaster is clouding. Only emission-free nuclear power, proponents say, can keep global warming in check without hindering economic growth.

There's serious talk in Alberta about using nuclear power to reduce emissions during oil sands production. Behind the scenes, Prime Minister Stephen Harper has reportedly embraced the cause. And Ontario has already committed to building two new nuclear reactors totalling 1,000 megawatts in the province just the start, industry and political sources contend.

Clean up your own backyard, Stelmach tells Gore

Gore was in Calgary speaking at a sold-out Jack Singer Concert Hall about his Academy Award-winning documentary, An Inconvenient Truth, which argues global warming, spurred by the use of carbon-based fuels such as oil and coal, is the biggest threat facing the world.

He has targeted the oilsands, suggesting far too much natural gas is burned processing northern Alberta's bitumen.

But Stelmach, who hasn't seen the documentary, said Monday in Calgary the province is merely feeding Americans' insatiable demand for energy, so perhaps Gore should look closer to home.