The National Energy Board released an update to earlier report of January.
You wonder sometimes why they issue such reports . They keep giving predictions only to correct them several months later . I mean their stuff is close to meaningless . Take this as reported by National Post:
‘In an update released Wednesday, the regulator projects inflation-adjusted oil prices rising to US$68 a barrel by 2020 and US$90 by 2040, $12 and $17 a barrel lower, respectively, than in its January report.’
I mean if in nine months they are off by $12 and $17 a barrel of oil , why make such crazy predictions ? The variables these days are such that such predictions are useless. On the issue of just shale production , the future is uncertain, not to mention the utter unpredictability of OPEC given the likes of Iran , Iraq , or Russia.
In spite of the weakness in making such predictions the update goes on to say, predict:
‘The NEB projects oil production to increase from 4 million barrels a day in 2015 to 5.7 million barrels a day by 2050, which is 391,000 barrels a day less than what it estimated in its January report.’
And then they go on and say the carbon tax announced by the PM was too late to be factored in their report. Well, what’s the value of the report if such vital information is not factored in? Why not delay the update so the report has some validity ?
‘Prime Minister Justin Trudeau has also committed to imposing an national carbon price on provinces that don’t initiate their own programs, but Milutinovic said the policy was announced too late to be incorporated into the report.’
And finally read this
‘Similarly, the NEB assumes liquefied natural gas exports begin in 2021, even though no export projects have been sanctioned.’
The politicians are bad these days and now former credible agencies are joining the club.