How We Got Into the High Cost Natural Gas Problem

Swift Current - May 26, 2001 - By: Bev Currie

price of
natural gas
M.L.A. Brad Wall asks us if we think the provincial government should provide financial relief because of the rising cost of natural gas. I have a better question. Why is the price of natural gas so high in Saskatchewan?

history
For the answer we have to go back a bit in history. There was a time when the Saskatchewan Power Corporation reserved, for Saskatchewan residence, all the natural gas in the province. It also purchased gas reserves in the Alberta Manny Islands gas field. None was exported and prices were regulated. Two right wing governments put an end to this policy.

deregulated
In the sixties the Ross Thatcher Liberal government sold the Great Sand Hills gas field to a private company for twenty five cents an acre and in the eighties the Grant Divine Conservative government sold Sask Power's reserves of 787 billion cubic feet of natural gas and 495,000 undeveloped exploration acres to Sask Oil for a pittance of its real value. Then he sold Sask Oil to his friends, again for much less than its real value. Grant Devine also deregulated natural gas allowing it to be marketed through distribution companies.

Medicine
Hat
Meanwhile the residence of the city of Medicine Hat enjoy natural gas prices that are 70% lower, and power prices 25% lower than the rest of the consumers in Alberta. Why? Because Medicine Hat has its own gas reserves which it acquired when gas was abundant and cheap. Saskatchewan once had the same policy but the parents of Mr. Wall's Saskatchewan Party put an end to that.

Saskatchewan
Party
We know Mr. Wall and his Saskatchewan Party are unabashed supporters of privatization and deregulation. I wait for him to explain how privatizing and deregulating our natural gas has benefitted Saskatchewan consumers. I'm waiting, but I'm not holding my breath.

Bev Currie
Box 852, Swift Current
S9H 3W8



Swift Current - May 26, 2001 - By: Bev Currie

price of natural gas	M.L.A. Brad Wall asks us if we think the provincial government should provide financial relief because of the rising cost of natural gas. I have a better question. Why is the price of natural gas so high in Saskatchewan?

history	For the answer we have to go back a bit in history. There was a time when the Saskatchewan Power Corporation reserved, for Saskatchewan residence, all the natural gas in the province. It also purchased gas reserves in the Alberta Manny Islands gas field. None was exported and prices were regulated. Two right wing governments put an end to this policy.

deregulated	In the sixties the Ross Thatcher Liberal government sold the Great Sand Hills gas field to a private company for twenty five cents an acre and in the eighties the Grant Divine Conservative government sold Sask Power's reserves of 787 billion cubic feet of natural gas and 495,000 undeveloped exploration acres to Sask Oil for a pittance of its real value. Then he sold Sask Oil to his friends, again for much less than its real value. Grant Devine also deregulated natural gas allowing it to be marketed through distribution companies.

Medicine Hat	Meanwhile the residence of the city of Medicine Hat enjoy natural gas prices that are 70% lower, and power prices 25% lower than the rest of the consumers in Alberta. Why? Because Medicine Hat has its own gas reserves which it acquired when gas was abundant and cheap. Saskatchewan once had the same policy but the parents of Mr. Wall's Saskatchewan Party put an end to that.

Saskatchewan Party	We know Mr. Wall and his Saskatchewan Party are unabashed supporters of privatization and deregulation. I wait for him to explain how privatizing and deregulating our natural gas has benefitted Saskatchewan consumers. I'm waiting, but I'm not holding my breath.

	Bev Currie Box 852, Swift Current S9H 3W8