• 1 day U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 1 day Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 2 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 2 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 2 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 2 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 2 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 2 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 2 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 3 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 3 days Venezuelan Output Drops To 28-Year Low In 2017
  • 3 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 3 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 3 days Kinder Morgan Delays Trans Mountain Launch Again
  • 3 days Shell Inks Another Solar Deal
  • 4 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 4 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 4 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 4 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 4 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 4 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 4 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 4 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 4 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 4 days Norway Grants Record 75 New Offshore Exploration Leases
  • 5 days China’s Growing Appetite For Renewables
  • 5 days Chevron To Resume Drilling In Kurdistan
  • 5 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 5 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 5 days Nigeria Among Worst Performers In Electricity Supply
  • 5 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 5 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 6 days Saudis To Award Nuclear Power Contracts In December
  • 6 days Shell Approves Its First North Sea Oil Project In Six Years
  • 6 days China Unlikely To Maintain Record Oil Product Exports
  • 6 days Australia Solar Power Additions Hit Record In 2017
  • 6 days Morocco Prepares $4.6B Gas Project Tender
  • 6 days Iranian Oil Tanker Sinks After Second Explosion
  • 8 days Russia To Discuss Possible Exit From OPEC Deal
  • 8 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
Alt Text

Soaring Indian Oil Demand Grabs OPEC’s Attention

As Indian oil demand continues…

Alt Text

The Biggest Loser Of The OPEC Deal

The OPEC production cut deal…

MINING.com

MINING.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

More Info

Does Canada Need More Oil Sands Pipelines?

Oil Sands

The claim that building more pipelines to carry Canada’s oil sands production to ports for export will unlock significantly higher prices for bitumen is not supported by either past or current market conditions, a new study shows.

According to Jeff Rubin, senior fellow at the Centre for International Governance Innovation, overseas markets pay even lower prices for bitumen than in North America, so there is no economic case for additional pipeline capacity to tidewater or expanded oil sands production.

In his report, Rubin says that global agreements to reduce global carbon emissions over the next three decades will also reduce the size of future oil markets, not to mention the emerging push for electric vehicles.

CIGI argues that there is no economic case for additional pipeline capacity to tidewater or expanded oil sands production.

As expected, the government of the province of Alberta, Canada’s oil sands production central, disagrees.

“It has never been more important for us to get new pipelines built,” Premier Rachel Notley said Thursday at the ribbon-cutting ceremony for a $1.6 billion expansion project led by Japan Canada Oil Sands.

She said she believed that more pipelines are needed to tap deeper into the growing Asian economies. Currently, about half of Canada’s oil exports are destined to the U.S., but the country is working on breaking the land lock condition and so expand its shipments to new markets. Related: Just How Big Is The Oil Market?

Another study released by the International Energy Agency (IEA) stresses the need to find alternative ways to channel oil sands production towards new markets.

In its monthly oil report released Wednesday, the Paris-based agency says Canada’s oil output could edge closer to the 5 million barrel-per-day milestone next year.

The country’s total oil production is predicted to increase by 290,000 bpd this year, and by another 200,000 bpd in 2018 to reach 4.95 million bpd, and could surpass 5 million bpd in the second half of the year.

Canada’s oil sands output has increased in recent year as projects that were commissioned years ago have come online. And if the momentum continues, the IEA says, the nation could displace Iraq as the world’s fourth largest producer after the U.S., Russia and Saudi Arabia.

Alberta’s oil sands hold the world’s third-largest crude reserves, but they are also among the most expensive operations due to their remote location and energy-intensive production methods.

By Mining.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Glenn on September 18 2017 said:
    Jeff Rubin! Now there's a contrarian call if I ever saw one. If only you could just put a bet on this. Rubin was never right about the direction of oil prices or any other commodity or equity. I've rarely seen someone so consistently wrong.
  • Refman on September 18 2017 said:
    If you are maxed out on existing pipeline capacity, and your only option is rail then you probably only have 2 other options.
    1) Build more pipeline capacity which should save you around $5/barrel in transportation costs versus rail.
    2) Build a refinery in the oil sands and only have to worry about transporting products.
  • Luis on September 18 2017 said:
    Canada needs pipelines yesterday.
    It is hindered potential here. We don't currently have have the rail capacity and importing in the east.We are too reliant exporting only to the states which now sells our product to Asia.
    Not all oil is used for transportation.
    Look at Norway, highest per capita electric vehicles, and still increased consumption year over year.
  • jarod thompson on September 19 2017 said:
    http://www.cbc.ca/1.4277320 no need for pipelines if they make bitumen pellets.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News