• 6 minutes Will the trade war hurt US project builds? Not if the US does it right.
  • 12 minutes OIl Targets from Experts to $300, vs. imho $52
  • 19 minutes Venezuela, the largest oil reserve in the world, faces deep shortages of motor oil
  • 24 mins Does S Arabia Have 2 Mln Barrels in Spare Capacity?
  • 15 mins Ireland Exits Fossil Fuels
  • 2 hours Trade War of 1930s, Extended the Great Depression
  • 2 days Apple's $300 fund in China
  • 10 hours Oil prices going down
  • 3 days Top Adviser to Khamenei: Iran Will Leave Syria, Iraq Only if Baghdad, Damascus Want It
  • 1 day Britain should bet more on renewables and less on nuclear
  • 14 hours Tesla Shareholders Finally Fed Up? Could it be true?
  • 3 days Russia & China bypassing Oil Sanctions to North Korea, U.S. Peeved
  • 2 days Good And Bad News: Global investments in wind power surged during the first half of 2018. At The Same Time Solar is slipping
  • 3 days Consumer prices on rise
  • 3 days Michiganders, Rejoice: Musk Will Fix Flint
  • 3 days Trump was right-AT&T has increased the prices
BREAKING: New Tech Just Unlocked A Trillion Barrels Of Oil

BREAKING: New Tech Just Unlocked A Trillion Barrels Of Oil

A game-changing new technology is…

Saudi Arabia's Solution To Rising U.S. Gas Prices

Saudi Arabia's Solution To Rising U.S. Gas Prices

The first U.S.-bound gasoline cargo…

Kinder Morgan To Resume Trans Mountain Work After Delay

Pipeline pieces

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

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