Delays in implementation and concerns about North American trade policies create uncertainty for the western Canadian pipeline development, analysis found.

A survey from IHS Markit of the pending or proposed pipeline networks in Canada, including Keystone XL, found the review process takes more than five years on average per project. Those time delays, along with U.S. President Donald Trump's pledge to reconfigure regional trade policies, leaves parts of the Canadian energy market in limbo, the report found.

"Lessons from the timing of Keystone XL and concerns over a possible resurgence of U.S. protectionism have highlighted the importance of market diversification," it said.

Canada is the No. 1 oil exporter to the United States and remains relatively landlocked because of limited pipeline capacity extending outside the country. Options may evolve, however, with Trump embracing the Keystone XL oil pipeline that would reach from Alberta to the southern U.S. coast.

A review of pending and recent pipeline developments in Canada from the research group found no major project could come online before 2019, leaving the country leaning on rail shipments for crude oil.

Rail is more expensive than pipelines for crude oil shipments and the derailment of railcars carrying crude oil through Lac-Megantic, Quebec, in 2013 left 47 people dead, making it the fourth-deadliest rail accident in Canadian history.

Canada has pushed to diversify its export options away from the United States. Pipeline company Kinder Morgan secured recent approval to expand the capacity of its Trans Mountain oil network to western Canadian ports.

In early January, Alberta Premier Rachel Notely said breaking Alberta's landlock with Trans Mountain fixes "a problem that has dogged our province for decades." Alberta's and the broader Canadian economy have suffered since crude oil prices drifted lower and Kevin Birn, the IHS director for regional energy projects, said the weak oil market has not diminished the need for more pipeline infrastructure from western Canada.

"Canada remains a growth story with production volumes increasing since the oil price collapse," he said in the report.

Tweet

US wants 'strong' Saudi Arabia: Mattis
Riyadh (AFP) April 19, 2017
The United States wants to see a strong Saudi Arabia, Defence Secretary Jim Mattis said during talks Wednesday aimed at reinvigorating the Riyadh-Washington alliance. Mattis, meeting the most powerful figures in the Saudi capital, also hinted that President Donald Trump could visit the kingdom, a longtime US ally which has welcomed Washington's firmer line against common adversary Iran. ... read more

Related Links
All About Oil and Gas News at OilGasDaily.com

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only