The Globe and Mail reports in its Thursday edition that oil patch leaders make a point of saying that while market access is a huge issue for industry, there is enough pipe space for their own companies. The Globe's Jeffrey Jones writes that Imperial Oil chief executive officer Rich Kruger says his company has all the pipe space it needs for the current phase of the Kearl oil sands project. Husky Energy CEO Asim Ghosh notes he is signed on to four major new pipeline proposals. Mr. Ghosh is confident he has enough space to meet Husky's needs through the end of this decade. Those needs will increase this year with the start of the Sunrise oil sands development.
Mr. Jones says market access issues often relate more to price than the physical movement of crude. That means integrated oil companies may be able to ship crude to refineries in traditional markets in Canada and the U.S. Midwest, although returns in their production divisions are thinner than they would like.
Energy company CEO's are warning of a major problem facing the entire sector, while at the same time assuring shareholders they have the situation well in hand, regardless of the regulatory and political delays that face major pipeline proposals.
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