Canada's Oliver says new energy markets crucial for economy


Just days before Canada's government issues a verdict on the proposed Northern Gateway pipeline, Finance Minister Joe Oliver says a failure to get landlocked Alberta crude to markets other than the U.S. will have stark consequences for the Canadian economy.

Oliver says growing U.S. supply and a lack of pipeline infrastructure means Canadian producers sold their crude at a discount vs. benchmark oil prices, leading to lost revenue of nearly C$30B (US$27.4B) in 2013.

The government is set to issue a decision by June 17 on whether Enbridge (ENB -0.3%) can proceed with the controversial pipeline, which would connect Alberta's landlocked oil sands to a Pacific coast port for export primarily to markets in Asia.

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Comments (6)
  • Scooter-Pop
    , contributor
    Comments (4948) | Send Message
     
    Enbridge certainly appears to have the support of the Canadian Government. Eventual approval of this pipeline appears worthy of a bet on Enbridge as they appear to be the only pipeliner willing to expend capital providing competitive markets for Alberta's semi stranded crude oil reserves.
    9 Jun 2014, 11:18 AM Reply Like
  • mac1943
    , contributor
    Comments (143) | Send Message
     
    Scooter ~~TransCanada ( Keystone ) and KinderMorgan (TransMountain) are both attempting to expand their capacity, and presumably will expend capital in the process. Pipeline companies don't really provide competitive markets~~they get the product to market.
    9 Jun 2014, 12:51 PM Reply Like
  • Scooter-Pop
    , contributor
    Comments (4948) | Send Message
     
    Mac,

     

    Are you saying Enbridge has competitors for the semi stranded Alberta Crude or generally speaking for all Takeaway Pipeliners for Canadian production?
    9 Jun 2014, 01:37 PM Reply Like
  • Blue22
    , contributor
    Comments (449) | Send Message
     
    China, India, Japan and Russia consume most of the World's coal now that Obama has banned the nasty, black stuff from power generation to any real extent. We export much of the coal to those countries despite the fact that whatever they burn ends up in the same atmosphere as ours!

     

    The same is true for Alberta Bitumen and its sulfur content. Russia has the highest sulfur and other pollutants than anyplace on Earth. Russia's dirty oil and gas production is thousands of times larger than Alberta and they pipe their crap directly to Europe and soon to Asia, unless they are allowed to drill the Arctic as planned and pipe it to China over and under land and sea, several thousand miles away!
    9 Jun 2014, 03:40 PM Reply Like
  • mac1943
    , contributor
    Comments (143) | Send Message
     
    Scooter Pop
    Currently,
    Enbridge is not the sole crude pipeline in, and from, Alberta. Inter pipe, Pembina, and Veresen all ship crude both within and out of the province. TransMountain ships from Edmonton to Vancouver. Keyera and AltaGas certainly collect within the province and connect to outside the province. There may be others; I don't have a comprehensive knowledge of all the various pipelines. Enbridge is certainly the biggie. Competition? Maybe.
    10 Jun 2014, 11:30 AM Reply Like
  • mac1943
    , contributor
    Comments (143) | Send Message
     
    ScooterPop
    If you go to capp.ca, and the oil, and then pipeline map, it shows the pipelines in Alberta as well as the rest of the continent.
    10 Jun 2014, 11:41 AM Reply Like
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