Justin Trudeau is poised to give the green light to a major crude pipeline as he faces rising calls to support Canada’s struggling oil industry.
The prime minister’s cabinet is widely expected to give the go-ahead at a meeting Tuesday to the expansion of the Trans Mountain pipeline from Alberta to Vancouver that would add 590,000 barrels of daily shipping capacity, a 15% boost to Western Canada’s current 4 million. The project would still need to get local building permits, overcome legal challenges and likely face pushback from environmentalists.
If completed, the expansion would nearly triple capacity on the pipeline that runs from the western crude-rich province of Alberta to British Columbia’s Pacific coast. But it has faced increasing protests from environmental activists and aboriginal groups.
If he rejects it, he risks further alienating an energy lobby that has accused him of wanting to wreck their industry as he has pressed ahead with plans to strengthen the environmental assessments of major new energy projects at a time of low prices. @ news.yahoo.com
It’s a lose-lose situation for Trudeau. After failing Canada in almost every aspect IE immigration, trade, the economy he will most likely try and help the energy sector after facing fierce backlash.
Canada’s Oil Patch Faces Capital Outflows
By Tsvetana Paraskova and capp.ca
Insufficient market access and continued uncertainty over additional pipeline capacity have finally caught up with the growth projections of Canada’s oil industry association.
The Canadian Association of Petroleum Producers (CAPP) has just released its 2019 Crude Oil Forecast, Markets and Transportation report which estimates that Canada’s crude oil production will continue growing from now until 2035, but at a much slower pace than previously thought. @ oilprice.com
This year, capital spending in the oil sands is set to decline for a fifth consecutive year to roughly $12 billion, approximately one-third of the investment seen in 2014. Conventional oil producers are expected to drill fewer wells in 2019 compared to either of the two previous years, and activity is not likely to improve without better market access via pipelines.
Overall, capital investment across Canada’s oil and natural gas industry is forecast to fall to $37 billion in 2019 compared to $81 billion in 2014. With global demand for crude oil expected to grow through to 2040, Canada has the opportunity to reclaim over $40 billion of investment if it addresses the key challenges surrounding access to international markets and regulatory and fiscal policy both federally and provincially. @ https://www.capp.ca