Stay informed
Alberta premier demands pipeline approval by fall in wake of Venezuela conflict
OTTAWA — Alberta Premier Danielle Smith is calling for Ottawa to approve a new heavy oil pipeline to the West Coast by the fall, saying that a United States-backed Venezuela threatens to undercut Canada in the global energy market.
Smith said in a social media post on Friday that she’d raised the issue earlier in the day with Prime Minister Mark Carney, stressing to him the urgency of getting more Canadian oil to non-U.S. markets.
“Today, I had a positive meeting with (Carney) during which we discussed the recent events in Venezuela, and how they underscore the necessity to greatly expedite the approval of a one million barrel per day oil pipeline to Canada’s (P)acific coast,” wrote Smith.
Smith said her government would submit an application for a heavy oil pipeline to northwest British Columbia by June “at the latest” and had asked for it to be green-lit “no later than this Fall.”
She warned that any dithering would risk “ceding market share, losing investment, and undermining Canada’s competitive position in a rapidly changing global energy landscape.”
Smith attached a letter she’d sent to Carney one day earlier expressing the same sentiment.
The U.S. sent shockwaves through the global energy landscape last weekend with a daring raid of oil-rich Venezuela, culminating in the apprehension of socialist dictator Nicolas Maduro and his wife.
U.S. officials, including President Donald Trump, have said subsequently that they hope to secure control over Venezuela’s massive subsoil oil reserves. Trump says U.S.-based oil and gas multinationals will invest $100 billion over the next several years to get the taps flowing.
Canada and Venezuela produce similar grades of heavy oil, meaning that Venezuelan oil can plausibly displace the Canadian product that currently flows into U.S. refineries.
Canadian oil stocks have tumbled on news of the incursion, losing $8 billion of stock market value in just four days.
The U.S. is by far the biggest customer for Canadian oil, accounting for more than 90 per cent of all exports.
National Post
rmohamed@postmedia.com
Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our politics newsletter, First Reading, here.
Unpublished Newswire
Comments
Be the first to comment