• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 2 hours Shale Oil Fiasco
  • 8 hours USA v China. Which is 'best'?
  • 3 hours Everything you think you know about economics is WRONG!
  • 8 hours Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 4 hours My interview on PDVSA Petrocaribe and corruption
  • 18 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 9 hours Quotes from the Widowmaker
  • 1 day True Confessions of a Billionaire
  • 8 hours Global Debt Worries. How Will This End?
  • 15 hours Petroleum Industry Domain Names

Canada’s Oil Giants Are Fed Up With Pipeline Delays

Canada Oil Giants

Canada’s energy producers are almost out of patience, Imperial Oil Limited CEO said on Tuesday.

“I think the industry has largely gotten to the point where we’ll believe it when we see it,” Rick Kruger, Imperial CEO told Bloomberg in an interview, adding that he was not willing to bet on when the oil pipeline would go into service.

Kruger is retiring from serving as Imperial’s CEO at the end of this year.

Canada’s federal government approved the much-awaited, much-delayed pipeline in June after purchasing it from Kinder Morgan in 2018 after KM grew weary of the prolonged battle in getting the pipeline project up and running.  But reactions were reserved, and with good cause.

In September, Canada’s Federal Court of Appeal ruled that it would allow indigenous challengers to the pipeline. The groups argued that they were not consulted adequately.  The ruling was just the latest in a long string of delays.

Related: Why One Analyst Thinks Tesla's Stock Could Soar To $400

The pipeline caused Alberta to institute mandatory oil production cuts in order to staunch the bleeding in price of its Western Canadian Select benchmark, which was trading at a record discount to WTI in late 2018. These production cuts, Kruger claims, prevented Imperial from committing to large-scale investments this year.

These production cuts were eased last week for new exploration wells, but oil producers are likely to find minimal comfort after putting their businesses on effective hold for all of 2019. And according to Kruger, this is just one of the issues plaguing Canada’s oil industry.

“The timeframes it takes, the cost, and, when you get approvals: Are they enforceable? Do they allow you to advance projects? We have an issue with that across our country.”

By Julianne Geiger 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
Download on the App Store Get it on Google Play