• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days The United States produced more crude oil than any nation, at any time.
  • 1 day e-truck insanity
  • 7 days How Far Have We Really Gotten With Alternative Energy
  • 7 days China deletes leaked stats showing plunging birth rate for 2023
  • 8 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 5 days Bad news for e-cars keeps coming
British Banks Have Abandoned North Sea Oil

British Banks Have Abandoned North Sea Oil

Virtually all British banks have…

Kinder Morgan To Resume Trans Mountain Work After Delay

Kinder Morgan will restart work on the Trans Mountain pipeline expansion project next month, the company said in a filing. CTV reports that the company had filed a six-month construction schedule with the National Energy Board, and work will start with the construction of a 120-kilometer stretch of the extension in Alberta.

The company had suspended all nonessential work on the project earlier this year amid growing opposition from environmental groups, and notably, from the new government in British Columbia. Things escalated quickly on the political level, with B.C. and Alberta engaging in a provincial version of a trade war, and the federal government proving itself incapable of settling the differences despite its repeated support for the project.

Eventually, Ottawa decided to buy the pipeline extension project itself—the announcement coming just a few days before a deadline set by Kinder Morgan to abandon the project unless the government could guarantee it would move forward. The price tag for Trans Mountain was US$3.43 billion (C$4.5 billion), substantially below the estimated US$5.95-billion cost of the project, and the federal government said it will look for external investors to sell it on to.

Trans Mountain runs from Edmonton to the B.C. Pacific coast, and the expansion would triple its current capacity to some 890,000 bpd. These are much needed barrels of capacity for Albertan oil sands producers, whose output has been growing. Pipeline capacity has been lagging behind production, under the weight of strong opposition. The expansion will also open up Asian markets for Canadian crude, which currently goes almost exclusively to U.S. refineries.

The pipeline crunch has also severely affected the price of Canadian crude, with its discount to West Texas Intermediate rising to US$30 a barrel earlier this year. Arguments against new pipelines—besides the spill fear—are based on forecasts that oil production will plateau before long, and any new pipeline capacity will become redundant. Yet medium- and long-term forecasts point to production growth, with the average daily production in Canada reaching 5.6 million bpd by 2035.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Earl Richards on July 05 2018 said:
    No tar sands tankers for Vancouver harbour. Google and read, "Vancouver Oil Sands Tanker Spill Could Cause Evacuation Nightmare".

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