The Globe and Mail reports in its Monday edition energy economists say a
prolonged slump in oil prices
will further slow two proposed
pipelines already hamstrung by
court challenges and community
opposition in British Columbia.
The Globe's Mike Hager writes federal officials are pushing for
both the Northern Gateway and
Trans Mountain pipelines to go
through the province. Werner Antweiler, an energy
economics professor at the University
of B.C., said the gap of
"almost $30" a barrel between North
American oil and the global
supply has "evaporated"
and does not look set to return.
"This was the big calculation a
few years ago [that] 'We need to
have these pipelines because
there is this big gap and now
we're losing all these arbitrage
benefits,'" Prof. Antweiler said.
"[Now] it's not quite as compelling,
getting to the foreign markets,
as maybe getting to some
of the closer markets [within
North America]."
That means TransCanada's
Energy East pipeline proposal is
likely the closest to getting built,
as it would send Western oil east
to be refined or exported, he added.
With energy companies spending less, there could be less oil available for pipelines
built in the future.
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