- Reaction score
- 7,777
- Points
- 1,260
There are 2 ways to fill a new 1+million bpd pipeline - add net new production - or - divert existing production from the US over to the new pipeline if the new pipeline sells to the new Asian customers at a higher price......Taken from the link below."Industry will need to invest capital in growing production to fill the new line, make shipping commitments, as well as invest in a carbon capture project mandated by the federal government"
Alberta Oil Pipeline to Cost Sector $73 Billion, Imperial Says
Alberta’s proposed million-barrel-a-day pipeline to the British Columbia coast will require Canada’s oil industry to invest more than C$100 billion ($72.5 billion),…financialpost.com
No one is going to invest that kind of cash if not everyone in government is on board from the various provinces and Feds. Sorry for the 10 years it has been an uphill battle for Oil and Gas to get projects approved and off the ground.
I suspect that if the price obtained for the oil shipped in the new pipeline is X% higher than what is shipped down to the US today on the existing pipelines that a transition over to the new pipeline will occur.
I'm not sold, at this moment, that there is a requirement to build new production capacity on a 1 to 1 ratio to what the new pipeline may carry.
