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Pipeline shortfalls costs Canada billions

Pipeline shortfalls cost Canada billions (Anton Watman / Shutterstock)

Due to a lack of capacity in the pipelines network, Canadian oil producers are forced to sell their products to the United States - with substantial price reductions. This is what the Fraser Institute, a Canadian think tank, found out in a study. In the current year alone this will cost the country's oil producers more than fiftheen billion Canadian Dollar.

In projects for the expansion of pipelines, as recently in British Columbia, there have been protests from politicians and citizens. This is a bitter blow for the oil companies. But Canada is not the only country with capacity bottlenecks. The USA has already reached its growth limit due to the capacity limit, as ptj reported earlier here.

Without sufficient connections and capacity in the production ports, Canadian oil producers are forced to sell their products in the USA - at drastically reduced prices," explains Kenneth Green of the Fraser Institute. "This harms the energy sector and ultimately the economy." This could not keep pace with the increase in Canada's oil production of recent years. Despite the clear demand of oil producers to adapt the infrastructure to current needs the future of important pipeline construction projects is uncertain. This and the lack of capacity together create a dependence on the US market, from where the oil has to be delivered expensively by train.

For every barrel of oil that has to be purchased from the US in 2018, Canada's oil producers will lose around 33 CAD in revenue. In total this means EUR 15.5 billion CAD in 2018 alone.


Quit your wining grow some balls and build a refinery in Alberta.

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