Access to global markets for western Canadian oil just got a whole lot easier — and it took a foreign jurisdiction to make that happen.
One of the challenges for our oil patch has been market access. As American companies developed the expertise to produce shale oil, they significantly increased their output and reduced their need for Canadian oil. The result was lower prices for us.
So we started looking for alternate markets. Asia holds the most potential but other parts of the world are attractive as well. The problem is being landlocked so places like Alberta and Saskatchewan began pushing for pipeline expansion to get our product to tidewater for export.
Trans Mountain through BC is one but it is running into a lot of interference. We’ll see if Ottawa will stand up for us and force this one through.
Energy East would have taken our product to the east coast but that has been nixed.
So now the US has approved Keystone clearing the way for our oil to be exported to the world through the U.S. gulf coast. That improved access but it took a foreign decision to make it possible.