The declining loss of Keystone XL will cost millions of Canadian industry, says the association



CALGARY – Bitterness and frustration have been the reaction of the Canadian oil industry after the US judge ordered a stoppage of the Keystone XL pipeline project until a further environmental review was made.

Thursday's decision means a longer delay in finding a way to dispose of oil leftovers in western Canada, leading to discounts on multi-year prices and pledged investments, said Tim McMillan, CEO of the Canadian Oil Producers Association.

"It's a vulnerability that we can not control and costs us hundreds of millions, if not billions of dollars as a nation and thousands of jobs," he said on Friday.

"And the only reason he has such a huge impact on us is that we have caused our own wounds on projects that could give us resistance to this sort of decision."

District judge Brian Morris found on Thursday that the potential impact of TransCanada Corp. to $ 10 billion was not considered as required by federal law. Environmentalists and Native Americans have sued to stop the project and put property rights and potential oil spills.

The judge, who was appointed by former President Barack Obama, issued a federal court order that blocked Trump's permission to build a gas pipeline.

TransCanada continues to dedicate itself to the project, a spokesman for Terry Cunha wrote on Friday in a short e-mail and added that the company had received a judge's judgment and reviewed it.

The company's pipeline shares in Calgary declined by as much as 2.75% at the beginning of the Toronto stock exchange.

Bankruptcy in the United States is an "alarm clock", which shows how important it is for Canada to build pipelines such as the delayed expansion of Trans Mountain on the West Coast to allow access to other markets, said Chris Bloomer, CEO of the Canadian Energy Pipeline Association.

"This affects the infrastructure that moves with Canadian energy, and that's why we will sell our energy at a discount," he said.

Lack of export pipelines such as oil production in Albania is being accused of a recent widening of the difference between the Western Channel Select bitumen and the US-based West Texas Intermediate, trading in New York, up to $ 52 a barrel, more than three times the typical discount.

Analysts say there are more than 110,000 barrels per day in western Canada in western Canada than oil produced and sold at disadvantageous prices.

"This is the longest war war in the world, with oil prices for Western Canadian oil," said Zachary Rogers, a research analyst at Wood Mackenzie's refinery and oil markets.

The judge's decision does not kill the Keystone XL project, he said in a report, adding that he expects the fight to continue in court or to lead the US State Department's next review, after which President Donald Trump will re-approve the line.

Spokesperson for Amarjeet Sohi, Minister of Natural Resources, said the liberal government was "disappointed" by a court ruling in Montana.

"It's important for good middle class jobs in Canada and for a successful energy market," said Vanessa Adams. "The project got all the necessary approvals in Canada."

The pipeline has to work within the hardened cap that Alberta puts on all oil emissions, and that the lid is a critical part of Canadian climate change action, she added.

Conservative nature conservationist Shannon Stubbs said that the liberals made a mistake when they did not initially seek the status of an associate in the original case and should work with US officials to appeal.

In the report, analysts Tudor Picking & Holt said the decision would make it impossible for TransCanada to start construction in the spring of 2019 as expected.

In January last year, TransCanada said it had on its route a total of roughly 500,000 barrels of transport, including an agreement with the Alberta government to supply 50,000 barrels per day of provincial property.

Other key suppliers of Keystone XL include major oil manufacturers in Calgary, Canadian Natural Resources Ltd., Suncor Energy Inc. and Cenovus Energy Inc.

A 1,897-kilometer pipeline would transport up to 830,000 barrels of oil per day from Hardist, Alta. To Steel City, Neb., And over half a dozen states to refineries on the Gulf Coast.

Becky Mitchell, chairwoman of the Northwoods Resources Council, a lawyer in Montana's lawsuit against Keystone XL, said her organization in the field of the environment was excited.

The company and the project's opponents were in a ten-year dispute involving protests between protesters and law enforcement officials.

In 2008, the Foreign Office issued a presidential permit for the gas pipeline, and TransCanada filed papers to expand the project. After years of litigation, Obama has refused permission in 2015.

The company replied by looking for $ 15 billion worth of damage. Trump has taken executive steps to move forward with the construction of the project in 2017.

Follow @HealingSlowly on Twitter.

– Files by The Associated Press

The companies listed in this article include: (TSX: TRP, TSX: CVE, TSX: CNQ, TSX: SU)


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