(The Canadian Press files.)

Lack of pipelines costing Canada billions: study

A new report by the Fraser Institute suggests Canada could miss out on $15.8 billion this year

Canada is losing out on $16 billion in potential revenue because of a shortage of oil pipelines, according to the latest study by the Fraser Institute think tank.

The study, released Tuesday, highlights how much money the country is losing through several “costly constraints” that have led to overdependence on the U.S., as well as reliance on more costly modes of energy transportation, such as rail.

“Insufficient transportation infrastructure and pipeline bottlenecks” have led to a dramatic drop in the market price of Canadian crude oil compared to other oil prices, the report said.

The difference in price between Western Canada Select and West Texas Intermediate averaged US$26.30 per barrel in 2018.

If this continues beyond the year’s first quarter, the report said, national energy firms could miss out on $15.8 billion in revenue, or about 0.7 per cent of Canada’s national GDP. That’s compared to a loss of $20.7 billion in foregone revenue between 2013 and 2017.

“Canada’s steep oil price discount is a result of insufficient pipeline capacity, which has dramatically lowered the market price for Canadian crude oil and resulted in lost revenue for oil producers as well as the economy,” the report says.

Trans Mountain key to Asian markets: study

Nearly 99 per cent of Canadian heavy crude oil is currently exported to the U.S., the study said, so expanding the B.C.-to-Alberta Trans Mountain pipeline would help gain access to Asian markets.

Building the Keystone XL and the Line 3 Replacement pipelines, it added, would expand capacity to the U.S. to combat a growing energy sector south of the border.

Canada doesn’t have the inventory to sell oil overseas because of delays and political opposition to several pipelines, the report said, and energy companies are forced to sell barrels to the U.S. at lower prices.

“Canada requires new pipeline infrastructure to transport heavy crude production from Western Canada to Gulf Coast refining hubs and overseas markets,” the report says.

B.C., feds continue court battle

Exactly which level of government has jurisdiction over the trans-provincial pipeline is currently before the courts.

The B.C. government has applied to court to see if it can impose new environmental permits on the pipeline project.

Prime Minister Justin Trudeau has vowed the pipeline will be built, and federal Finance Minister Bill Morneau is working on a plan with Kinder Morgan to ease investors’ worries.

B.C. Premier John Horgan, meanwhile, has said he will use every tool available to stop the pipeline, which he says could have environmental and economic repercussions in the case of the spill.


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Cost of Pipeline Constraints in Canada: Fraser Institute by Ashley Wadhwani on Scribd

Just Posted

COMMUTER ALERT: Motorcycle crash on major thoroughfare sends one to hospital

Mounties are still on scene of an afternoon accident at 64th Avenue and 168th Street.

Man facing seven charges after alleged threats at Surrey restaurant

Surrey RCMP say incident at Whalley business was ‘very traumatic’ for customers and employees

Witchazel rocks again with CD of ‘Lost Tapes’ from band’s ’80s glory days

Surrey bar a stage for ‘Cancer Killer Rock Party’ on Aug. 30

Record turnout for Five Corners concert in White Rock

Abba/Elton John/Billy Joel salute attracts an estimated 4,500 people

Delta police secure 94 charges in dial-a-dope bust

Seven people with ties to the Red Scorpion gang are facing drug and firearm charges

VIDEO: Surrey to host Western Regional Quidditch Championship in 2019

The fictional game in the Harry Potter series has become popular around the world, with 600 athletes in Canada alone

Women-owned businesses generate $68,000 less revenue than men’s: survey

When Dionne Laslo-Baker sought a bank loan to expand her burgeoning organic popsicle and freezies business in 2014, she was “shocked” by the feedback she received from one of the bankers.

Hedley frontman’s alleged sex offences case returns to court

Jacob Hoggard faces three sexual assault-related charges will return to a Toronto courtroom this morning.

Climate change likely to cause more sewage leaks, says environment minister

More than one hundred municipal wastewater systems did not report how much raw sewage overflowed from their pipes in 2017.

Priests molested 1,000 children in Pennsylvania, report says

The “real number” of abused children and abusive priests might be higher since some secret church records were lost and some victims never came forward.

Defiant as Trump rages, Omarosa says she won’t be silenced

Manigault Newman declared she will not be silenced by President Donald Trump, remaining defiant as her public feud with her former boss shifted from a war of words to a possible legal battle.

Death toll hits 39 in Italy bridge collapse; blame begins

The collapse of the Morandi Bridge sent dozens of cars and three trucks plunging as much as 45 metres (150 feet) to the ground Tuesday.

RCMP to search for body after man drowns in B.C.’s Buntzen Lake

Officers and fire crews responded but the man from the Lower Mainland is believed to have drowned.

Police chiefs call for stricter controls on pill presses to fight opioids

Canada’s police chiefs are urging Ottawa to beef up its fight against the opioid scourge by closely vetting people who import pill presses

Most Read