The U.S. recently scuttled construction of the Keystone XL pipeline, and there was much hand-wringing and tongue-wagging associated with that decision.
In the face of recent statements from Canadian oil interests, maybe that wasn’t so bad.
In a Bloomberg Business report, “Canadian energy companies seem disappearing in oil’s ‘new world’,” about a conference in Alberta, attendees heard dire predictions for the Canadian oil industry. Companies are shuttering their doors trying to compete with lower worldwide oil prices and the less expensive U.S. crude coming from shale.
Building the pipeline would do little to help move tar sands oil from western Canada if there’s no oil to move. When prices recover and profitability returns, maybe then a viable pipeline project can be considered. That seems like a sounder business plan.
F. Gerard Nault
Windsor
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