• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 6 hours "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days "How China Could Send LNG Prices Into The Stratosphere" by Irina Slav
  • 3 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 4 days The Federal Reserve and Money...Aspects which are not widely known
  • 5 days How Far Have We Really Gotten With Alternative Energy
  • 7 days "Oil-funded Rockefeller Foundation centers fight for climate" - Associated Press
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Canada To Step Up Climate Scrutiny On Oil Pipelines

The Canadian government is set to impose stricter criteria for evaluating major energy infrastructure projects like oil and gas pipelines or liquefied natural gas export terminals.

The federal government is reportedly planning on adding a “climate test” for proposed projects, an extra hurdle for large-scale projects to clear if they are to receive approval, according to The Globe and Mail. The move comes after Prime Minister Justin Trudeau promised greater scrutiny in order to reduce Canada’s greenhouse gas emissions during the race for Prime Minister late last year.

The additional evaluation for effects on greenhouse gas emissions could add billions of dollars to major pipeline projects, which include: Kinder Morgan’s Trans Mountain expansion, a pipeline that would run from Alberta to the Pacific Coast; TransCanada’s long-distance oil pipeline Energy East, which would carry oil from Alberta to Canada’s east; and Pacific Northwest LNG, a Pacific Coast LNG export terminal. All are up for review but face significant obstacles before gaining approval. Related: Security Woes Threaten OPEC’s Second Largest Producer

The new rules are tentative and have not yet been made official. But The Globe and Mail reported that the energy projects that would be subject to the climate test would not have to start the regulatory process over, but instead, the extra scrutiny would be added on.

The projects mentioned above – Trans Mountain, Energy East, Pacific Northwest LNG – all face an uphill battle. Provincial and local governments have already voiced opposition. Last week, for example, Montreal’s mayor came out against TransCanada’s Energy East. Vancouver’s mayor has already voiced opposition against the Trans Mountain expansion. Related: Oil Crash Only The Tip Of The Iceberg

The federal government has also said that the Trans Mountain pipeline needs to consult with First Nations more than it has.

Alberta is a facing hard times because of the collapse in oil prices. But the bottleneck created from the lack of major infrastructure to transfer oil and gas out of the province has further hindered the energy sector. Canadian oil trades at a significant discount to other oil benchmarks because of greater transportation costs and inadequate pipeline capacity. The industry has long said that “market access” should be the energy sector’s highest priority, referring to more pipeline capacity.

Meanwhile, the Canadian Association of Petroleum Producers (CAPP) published a forecast for 2016, expecting oil and gas investment to fall to C$42 billion (US$29.5 billion), a 48 percent drop off since 2014.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News