Alberta Continues to Export Bitumen through Pacific Ports -- But without new pipeline projects, Canadians still lose out...
Posted on March 18, 2018
This is bad news for Canadian pipeline landowners. For a few reasons.
First, most pipeline landowners rely on rail to move their product to market. Rail cars crammed with bitumen create a bottleneck which means delays and inevitably higher freight rates for producers. Time is money and higher overhead cuts into the bottom line.
By letting British Columbians kill off the TransMoutain replacement and expansion, and unofficially but effectively banning all new pipeline projects, the current government in Ottawa is hurting both present and future pipeline landowners. There will be a marked drop in opportunities to benefit from the prosperity that comes from partnering with energy transport.
Finally, as an industry heavily reliant on abundant cheap energy, agriculture will suffer from the higher energy prices that result when Canada's supply is kept off world markets.
Justin Trudeau's ban on tankers in BC's northern coastal waters, which killed Northern Gateway, is resulting in a boom in rail and shipping traffic...in the Pacific Northwest.