• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 3 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 6 hours Indonesia Stands Up to China. Will Japan Help?
  • 3 hours US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 10 hours Shale Oil Fiasco
  • 24 hours Might be Time for NG Producers to Find New Career
  • 10 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 3 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 7 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 17 hours Beijing Must Face Reality That Taiwan is Independent
  • 1 day Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 21 hours Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 1 day China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024

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