• 4 minutes U.S. Shale Output may Start Dropping Next Year
  • 8 minutes Read: OPEC WILL KILL US SHALE
  • 12 minutes Tidal Power Closer to Commercialisation
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 2 hours Why U.S. Growers Are Betting The Farm On Soybeans Amid China Trade War
  • 2 hours Trump to Make Allies Pay More to Host US Bases
  • 4 hours BATTLE ROYAL: Law of "Supply and Demand". vs. OPEC/Saudi Oil Cartel
  • 2 hours US-backed coup in Venezuela not so smooth
  • 14 hours Solar to Become World's Largest Power Source by 2050
  • 1 day Sounds Familiar: Netanyahu Tells Arab Citizens They’re Not Real Israelis
  • 4 hours Biomass, Ethanol No Longer Green
  • 21 hours THE DEATH OF FOSSIL FUEL MARKETS
  • 1 day Can OPEC CUT PRODUCTION FOREVER?
  • 1 day Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 1 day this is why Climate Friendly Agendas Tread Water
  • 19 hours Exxon Aims For $15-a-Barrel Costs In Giant Permian Operation

Breaking News:

Tesla Wants To Enter India Soon

Iran’s Secret Oil Tanker Mission

Iran’s Secret Oil Tanker Mission

Iran is on a mission…

The Oil Industry Faces A ‘Crisis Of Confidence’

The Oil Industry Faces A ‘Crisis Of Confidence’

The annual HIS CERAWeek Conference…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Ottawa In Emergency Meeting Over Trans Mountain Pipeline

Transmountain pipeline

Canada’s federal cabinet is to hold an emergency meeting today after yesterday Kinder Morgan’s Chairman Steven Kean warned that the company will suspend work on the Trans Mountain oil pipeline at the end of May unless the problem with British Columbia’s opposition to the project is resolved.

The federal government has greenlit the project, but British Columbia’s new NDP government that won the vote last year has vowed to fight it with all legal means at its disposal. This put the province at odds with neighboring Alberta, and this fight escalated quickly.

Yesterday, Alberta PM Rachel Notley said that the province is preparing legislation that should be passed this week and that will penalize B.C. for its opposition to the project. In a string of tweets, Notley made sure to paint a very clear picture of Alberta’s unwavering determination to have the Trans Mountain expansion built.

The province has already decided to become an investor in the expansion and will now “move very aggressively” to neutralize B.C. by stopping the flow of oil and gas there. The federal government, for its part, could apply financial pressure by reducing or suspending the annual transfers from federal to provincial coffers. This year’s sum is US$5.44 billion (C$6.9 billion) in health system and social service transfers. B.C.’s government believes suspending payments would be unlawful, however.

Related: Higher Oil Prices Boost Saudi Credit Rating

Ottawa may be motivated to follow Alberta’s aggressive lead. As Notley said, "If the federal government allows its authority to be challenged in this way, if the national interest is given to the extremes on the left or the right, and if the voices of the moderate majority of Canadians are forgotten, the reverberations of that will tear at the fabric of Confederation for many many years to come."

The latest developments in the Trans Mountain saga highlight the many challenges of trying to juggle between a pro-environmentalist agenda and keeping an energy industry that employs tens of thousands alive and growing. The ball is now in Ottawa’s court.

By Irina Slav 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