The Financial Post reports in its Monday edition that energy policy has always been a contentious issue in Canada. A Post editorial says now, more than ever, the vitality of Canada's economy depends on our ability to export this country's vast oil reserves. The Post is hopeful that political considerations will force policymakers to make real progress on the approval of new pipelines.
China and other Asian countries continue to develop at a rapid pace, making it imperative that oil sands producers find a way to bring their product to this emerging market.
The Post says the best and safest way to transport bitumen to the Pacific is to increase the capacity of the existing Trans Mountain Pipeline and to follow through on Enbridge's proposed Northern Gateway pipeline. The Post also notes that Canada is fast running out of pipeline capacity. The situation is so dire that a glut of supply has forced oil sands producers to sell their product well below the international market price. The situation is not only hurting the Alberta government's balance sheet, it is having a negative impact on the entire Canadian economy. With any luck, the Post says politicians will get their act together and do what's best for Canada.
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