What we are suffering is a simple market adjustment. This view is expressed by B.C. Liberal energy critic Richard Neufeld. Completion late last year of the new Alliance pipeline, which runs from northeastern B.C. directly to Chicago, and its extension via the Vector line to southern Ontario, also means that less B.C. gas will be available at Sumas. Neufeld believes that British Columbians and North Americans generally are going to have to get used to higher natural gas prices. It's pretty hard to get a dam built any more.
Nuclear power is scary.
So as people need more electricity, we are going to see more generation from natural gas. It's going to keep the cost up. Neufeld accepts the energy industry's claim that high prices will open up new gas fields in Canada's north, create explo ration jobs, and bring in ever-greater government royalties to pay for big ticket items like health care and education. You could take the royalties right out of it, and the market would still maintain the prices. It's just like lumber, he says.