Refineries in Canada

Re: Why Canada shouldn’t build more oil refineries, May 12

This article criticized Premier John Horgan’s thoughts about a new B.C. coastal refinery. Unfortunately, it included a lot of wrong information. It claimed:

❚ Refineries must be close to their markets.

True if inland, but not true for export refineries which are all built on a coast.

❚ It is too expensive to build refineries in Canada.

Not true for coastal refineries where huge modules built in low-wage countries comprise half the cost of construction.

❚ North America will not have a lot of future growth in refined fuel consumption.

True, but irrelevant for an export refinery.

❚ Canada can’t compete with China because of wage rates.

Not true because wages are only 1.5 per cent of total refinery operating costs. A refinery on B.C.’s coast would be the lowest cost plant on the entire Pacific, including China.

❚ Oil extraction is where the money is made and refineries are not lucrative.

Not true. Look at the audited statements of all public petroleum companies. Refining and chemical plants, which are located beside refineries, make more than extraction does for most companies.

David Black, Founder, Kitimat Clean refiners, Victoria