• 4 minutes Your idea of oil/gas prices next ten years
  • 7 minutes WTI Heading for $60
  • 13 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 59 mins Pros and Cons of Coal
  • 8 mins Why does US never need to have an oil production cut?
  • 11 hours US continues imports of Russian gas which it insists Europe should stop buying
  • 17 hours Is California becoming a National Security Risk to the U.S.?
  • 3 days Germany Discusses Lifting Ban on Deporting Syrians
  • 18 hours Regular Gas dropped to $2.21 per gallon today
  • 13 hours Warren Buffett
  • 43 mins Oil Prices
  • 9 hours And Just Like That, Everybody Stopped Talking About $100 Oil
  • 1 day Trump administration slaps sanctions on Saudis over Khashoggi's death
  • 2 days Pence says South China Sea Doesn't Belong To Any One Nation
  • 3 days Anyone holding Nvidia stock?
  • 2 days Commission: U.S. Could Lose Wars With Russia, China
Canadian Oil Producers Divided On Output Cuts

Canadian Oil Producers Divided On Output Cuts

Alberta oil producers are divided…

Saudis Scramble To Stop Oil Price Slide

Saudis Scramble To Stop Oil Price Slide

Oil briefly spiked on Monday…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Pipeline Bottleneck for Canada-U.S. Routes Costs $5 Per Barrel

pipeline construction

The widening gap between supply and demand for pipeline capacity linking Canada and the United States is causing higher fuel costs in North America, according to a new report from the C.D. Howe Institute.

Oil and gas producers in the north are struggling to stay competitive because of rising transportation costs as pipeline projects fail to materialize time and time again. Canada plans to create a new system for the approval of major energy projects.

"If Canadian governments allowed pipelines to be built expeditiously, the competitiveness of western Canadian oil producers would be greatly improved," Benjamin Dachis of C.D. Howe said.

Carbon taxes tend to get the most media attention, but the measures do less to stifle competitiveness than pipeline capacity shortages, the researcher said. The study estimates that the bottleneck cuts profits by around $5 a barrel when all is said in done.

New projects in Canadian oil sands tighten competition further. The Fort Hills oil sands project in Alberta, Canada, achieved first oil this week, with production expected to ramp up over the coming months to 180,000 bpd, France’s Total—which holds 26 percent in the project—said on Monday.

Existing pipelines are facing scrutiny from U.S. regulators as well. TransCanada said earlier this week that U.S. regulators are still requiring the Keystone pipeline to operate at 80 percent capacity after the key vein suffered a 5,000-barrel leak a couple of months ago.

TransCanada said last week it had secured 500,000 bpd worth of 20-year commitments from shippers willing to use its future Keystone XL pipeline in an upbeat update on the progress of the notoriously controversial project. This amount is about 60 percent of the 830,000-bpd pipeline. The company has seen share prices surge as the pipeline’s prospects seem rosier, but the company still needs to make a final investment decision on the project.

By Zainab Calcuttawala 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
-->