Canadian pipeline construction is being boycotted by the United States because they address the price differential between higher West Texas Intermediate pricing and much lower Western Canada Select pricing.
The US guarantees their own supply of oil from Canada by being our only customer and by making sure that they’re our only client, they know our hands are tied. According to the National Energy Board, Canada exports 99% of our oil to the United States, or about 484,000 out of 489,000 bbl/day. By being our only customer; it keeps their costs low and moves them toward energy independence. Construction of Canadian pipeline infrastructure would mean getting our oil to the global market and that the discounts would come to an end.
Justin Trudeau was in Calgary and he mentioned that the former Conservative government didn’t get any pipeline project built, but there were four constructed under Stephen Harper. Two pipelines were approved that crossed the border – Trans Canada’s Keystone which ends at Cushing, Oklahoma and Enbridge’s Alberta Clipper which ends at Superior, Wisconsin. Extensions were proposed for both of these projects, later delayed and denied. But the Kinder Morgan Loop and Line 9 reversal were protested, but went through. Those projects didn’t address the price differential, while expansions would have addressed the price differential and would have gotten our product to market – leading Canada further down the path to energy independence.
The Obama Administration has rejected our pipelines under the guise of climate change, but the real reason that Americans boycott our pipelines is because they know that if they approved these projects, they wouldn’t be able to purchase oil at discount prices any more. And if a democrat like Hillary Clinton gets into office, we can expect more of the same. And Justin Trudeau will just toe the line.
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Any government in Canada that opposes pipelines
should lose its share of oil & gas equalization payments.
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