The Financial Post reports in its Friday edition it appears that worries about pipeline shortages and acquiring "social licences" are more of a concern to oil companies than falling prices. The Post's Yadullah Hussain writes that while Canada has managed to increase its market share in the United States, Canadian light oil and heavy need to find new markets.
"I remain extremely hopeful that we are going to build some oil export pipelines for our Western Canadian oil patch, not just the oil sands, but conventional producers as well," said Patricia Mohr, vice-president, economics, and commodity market specialist at Scotiabank. While major pipelines are delayed, Canadian oil is finding its way to the U.S. Midwest, thanks to rail and reimagined pipeline outlets. Enbridge expanded its Line 61 between Superior and Flanagan, Ill., in August. Enbridge's reversal of Line 9 pipeline project could finish by the end of October, allowing 300,000 barrels per day of Western Canadian crude to flow to Eastern refineries.
Experts point out, however, that smaller pipeline connections are no substitute for the flagship export pipelines and further delays would likely widen the heavy oil discounts sooner rather than later.
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