• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 12 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 1 min Pakistan: "Heart" Of Terrorism and Global Threat
  • 1 day Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 5 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 5 hours Venezuela set to raise gasoline prices to international levels.
  • 1 day Batteries Could Be a Small Dotcom-Style Bubble
  • 58 mins Renewable Energy Could "Effectively Be Free" by 2030
  • 17 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Starvation, horror in Venezuela
  • 18 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 1 day France Will Close All Coal Fired Power Stations By 2021
  • 1 day Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 10 hours Corporations Are Buying More Renewables Than Ever
U.S., China Trade War Puts A Lid On Oil

U.S., China Trade War Puts A Lid On Oil

Negative signs for demand have…

IEA: The World Needs More Diverse Cobalt Sources

IEA: The World Needs More Diverse Cobalt Sources

The International Energy Agency reported…

Alberta’s Economy Is Growing Faster Than Expected

oil pipelines

Alberta’s economy is grower faster than projected due to strong growth in oil markets over the course of 2017, according to a new report by Bloomberg.

The four-percent growth rate that Alberta saw in 2017 trumps the projected 3.1 percent rate forecasted in the province’s latest budget report. Alberta says it has added over 70,000 new jobs since mid-2016 as the number of active rigs climbs week over week.

Still, unemployment hovers around eight percent, which weighs on tax revenues. The government initially said it expected to collect C$15.1 billion in taxes in the current fiscal year, but now the projections have dropped to C$14.7 billion.

Canada’s oil industry faces multiple headwinds on top of an oil bust that has changed the global industry over the past few years. Canadian producers are selling their oil at hefty discounts to WTI, not only because of the heavier sour variety they are pumping out of the oil sands, but also because of limited pipeline capacity that moves the oil out of landlocked Alberta—the heart of the Canadian oil industry.

Currently there are three pipelines in the works that will take more Alberta oil either to the U.S. or to the Canadian Pacific coast: Enbridge’s Line 3 Replacement Program, Kinder Morgan’s Trans Mountain expansion project, and TransCanada’s Keystone XL pipeline. Last month, TransCanada scrapped a pipeline project to ship oil to the Canadian East Coast.

In the best-case scenario for Canada’s pipeline capacity—that is, if all three remaining pipelines clear all regulatory hurdles—Canadian pipelines will have 52,100 bpd of excess capacity in 2020, and more than 656,100 bpd in 2022, according to estimates by Bloomberg Gadfly columnist Liam Denning. If Keystone XL doesn’t go ahead and Line 3 and Trans Mountain proceed, excess pipeline capacity in 2022 will be just 50,000 bpd.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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