Scotiabank: Without Pipelines “Canadian Production Will Outstrip Pipeline Takeaway Indefinitely”
The United States and Canada face the same issues when it comes to bringing new oil and gas pipelines online. In the past, Connecting the Dots has outlined barriers to construction in the United States. Now, with the recent Kinder Morgan announcement that it would suspend all non-essential work on the Trans Mountain Expansion pipeline because of British Columbia’s environmental objections, it is clear the same barriers exist in Canada.
What will be the practical effect of these barriers? As the website The Fuse makes clear, Canada faces long-term vulnerability if new pipelines are not allowed to come online. Scotiabank said if Kinder Morgan’s Trans Mountain Expansion, or its Keystone Pipeline, is halted, “Canadian production will outstrip pipeline takeaway capacity indefinitely.”Business Council of Canada President John Manley echoed concerns about pipeline development. Regarding the Trans Mountain Expansion pipeline issue, he said, “In the absence of a swift resolution to this issue, foreign and domestic investors will be left to question whether Canada is a suitable place to invest.” Prime Minister Justin Trudeau has promised to step in to help get the pipeline move again.
As a reminder, the Metals Service Center Institute (MSCI) supports policies that protect our environment and provide a stable energy supply. MSCI also supports an “all of the above” energy strategy that protects our energy security by expanding domestic energy production to efficiently and affordably deliver power to our nation’s industrial metals industry.”
MSCI is a member of the Energy Equipment and Infrastructure Alliance, a coalition representing more than 120,000 companies in the energy supply chain that works to achieve policies at all levels of government that encourage full development of shale resources, while protecting the environment, health and safety.