Alberta premier says Canada could boost oil export to U.S., calls for major new pipeline

Alberta Premier Jason Kenney addresses delegates at the once-a-year Alberta United Conservative Occasion (UCP) convention in Calgary, Alberta, Canada November 20, 2021. REUTERS/Todd Korol

May well 17 (Reuters) – Canada could increase more than a million barrels for each working day (bpd) of oil export capacity to the United States more than the up coming two decades, Alberta Premier Jason Kenney instructed a U.S. Senate committee on Tuesday, even though also calling for a new cross-border oil pipeline.

However, federal Normal Means Minister Jonathan Wilkinson mentioned there was minimal dialogue in Ottawa or Washington about a new oil pipeline, and warned that narrowly focusing on fossil gas protection risked hindering weather goals.

Kenney and Wilkinson have been in Washington addressing a Senate strength and pure assets committee on the challenge of electrical power safety, as countries all over the planet experience increasing crude price ranges and tight source subsequent Russia’s invasion of Ukraine.

Their contrasting remarks illustrate how the federal Liberal government is typically at odds with conservative politicians like Kenney around how most effective to manage Canada’s huge oil and fuel wealth while also lowering climate-warming carbon emissions.

“With political will from Washington we could also get an additional important pipeline crafted that would eternally let the United States to totally free alone from imports from hostile regimes,” Kenney told the committee, including Alberta is the biggest source of U.S. strength imports.

The Canadian government has earlier reported Canada could raise oil pipeline exports by 300,000 bpd this calendar year. read a lot more

Kenney claimed an additional 200,000 bpd could be transported south by rail, when technological advancements from midstream companies could increase as significantly as 400,000 bpd of pipeline capability by upcoming yr. The Canadian government-owned Trans Mountain pipeline expansion job is anticipated to be finished late upcoming calendar year, and will insert a further 600,000 bpd, he reported.

Wilkinson explained to Reuters soon after the Senate listening to that this was the first he had heard of a probable boost in rail capability or complex enhancements, and any maximize in oil exports to aid offset shed Russian provide would have to have to be dependable with Canada’s local climate targets.

“The conversations I was acquiring with White Property had been extra forward-seeking, about hydrogen, about significant minerals, about clear systems,” he mentioned.

Canada exports around 3.8 million bpd of oil to the United States and until finally just lately faced pipeline constraints that still left crude bottlenecked in Alberta. U.S. President Joe Biden revoked a crucial allow for the Keystone XL pipeline in early 2021, infuriating the Canadian strength business.

Even so with the commence-up of Enbridge’s Line 3 replacement job very last yr, Canadian export potential is now broadly in line with generation.

Electrical power analyst Rory Johnston, founder of the Commodity Context publication, claimed oil output is anticipated to only expand about 100,000 bpd a 12 months likely forward, meaning extra export potential would not always suggest additional barrels crossing the border.

Reporting by Nia Williams
Modifying by Bernadette Baum, Marguerita Choy and Nick Zieminski

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