FORT ST. JOHN, B.C. – Without adequate pipelines to the countries coastal regions, Canadian oil producers are being forced to sell their products in the US at dramatically discounted prices resulting in greatly diminished benefits to Canada’s economy.
That’s the core finding of a new study from the Fraser Institute at a time when three major pipeline projects have been hanging in regulatory limbo for years.
Trans Mountain expansion, and Energy East and Northern Gateway construction, would allow roughly two million barrels of western Canadian crude to reach overseas markets on a daily basis.
So to try and determine potential oil company revenues and government royalties by connecting oil producers with overseas markets, this study calculated a number of scenarios using oil price and demand projections as well as estimated access to the foreign markets.
Co-author, Doctor Kenneth Green is the senior director of the Institutes Centre for Natural Resource Studies.
Doctor Green says, for Canadians to continue to prosper from our oil and gas resources, policymakers must expedite the pipeline process.
However the policy makers are essentially trying to referee a debate, often involving on the one side environmental challenges, leading to a lengthy regulatory process, which is often an obstacle to the economic development challenges on the other side of the debate.