Pipelines, energy and natural resources

[Brad Sallows]

Amen to that! The laws of supply and demand rule supreme in all commodity industries...

The cornerstone of all that is pricing. One of the great problems to be solved is figuring out where stuff has to go to make more stuff. How can timely information possibly be created and received and acted upon? That insufficiency of information is why command economies fail.

Answer: prices.

 

[daftandbarmy]

Begging for federal welfare - anything but lifting business killing BC regulatory requirements...

Minister says B.C. expects billions from feds for forestry if U.S. talks fail​

Federal negotiators "must recognize that if they are unsuccessful" in addressing U.S. duties and tariffs on timber, B.C. will need help, says B.C. Forests Minister Ravi Parmar.

https://www.timescolonist.com/business/minister-says-bc-expects-billions-from-feds-for-forestry-if-us-talks-fail-12220882

 

[Brad Sallows]

Federal negotiators "must recognize that if they are unsuccessful" in addressing U.S. duties and tariffs on timber, B.C. will need help, says B.C. Forests Minister Ravi Parmar.

You wait for a loooong time for something to come along that move governments to do things you've thought they should do. Then a crisis arrives. Some governments start doing some of the things, but also put a lot of energy into pressing other governments to act first. Obviously there is not enough external pressure.

Let the crisis go on.

 

[HavokFour]

Begging for federal welfare - anything but lifting business killing BC regulatory requirements...

Minister says B.C. expects billions from feds for forestry if U.S. talks fail​

Federal negotiators "must recognize that if they are unsuccessful" in addressing U.S. duties and tariffs on timber, B.C. will need help, says B.C. Forests Minister Ravi Parmar.

https://www.timescolonist.com/business/minister-says-bc-expects-billions-from-feds-for-forestry-if-us-talks-fail-12220882

Sounds like an avenue for a deal to be made. That money could be tied to revenues made from a pipeline to the coast.

 

[Kirkhill]

The cornerstone of all that is pricing. One of the great problems to be solved is figuring out where stuff has to go to make more stuff. How can timely information possibly be created and received and acted upon? That insufficiency of information is why command economies fail.

Answer: prices.

Prices are difficult to plan but easy to change.

Planners insist in sticking to their plans even in the face of failure.

Retail businesses have to adjust their prices on a daily basis according to what the market will bear.

Ultimately every business venture is an experiment. The only reliable means of managing risk is through scaling. Start small and work up.

You have to suck it and see.

 

[Brad Sallows]

Prices are difficult to plan but easy to change.

Planners insist in sticking to their plans even in the face of failure.

Retail businesses have to adjust their prices on a daily basis according to what the market will bear.

Ultimately every business venture is an experiment. The only reliable means of managing risk is through scaling. Start small and work up.

You have to suck it and see.

What does that have to do with the information conveyed by prices?

 

[Kirkhill]

What does that have to do with the information conveyed by prices?

Prices change day by day.

Projects are planned years in advance based on anticipated prices.
As the project approaches IOC the price acceptable to the market may or may not be the price, or hopefully the price range, anticipated when the project planning commenced.

At that point decisions need to be made.
Accept the loss and shut down the project.
Hope for better days and plow on .
Hand the project off to another fallguy.
Figure out Plan B with what you have on hand.

 

[daftandbarmy]

Prices change day by day.

Projects are planned years in advance based on anticipated prices.
As the project approaches IOC the price acceptable to the market may or may not be the price, or hopefully the price range, anticipated when the project planning commenced.

At that point decisions need to be made.
Accept the loss and shut down the project.
Hope for better days and plow on .
Hand the project off to another fallguy.
Figure out Plan B with what you have on hand.

Time for a quote:

"The only function of economic forecasting is to make astrology look respectable"

John Kenneth Galbraith