Costs of Pipeline Obstructionism

摘要

Canada faces multiple challenges in its natural resource sector. World oil prices have fallen by more than 50% over the last two years. American oil and gas production have surged and threaten to reduce demand for Canadian oil in its largest (and essentially only) foreign market. Because of a lack of tidewater access for Canadian oil, Canadian oil producers can only sell into the U.S. market, which is glutted in the Midwest and is where most Canadian oil is bought. Because of these constraints, Canadian oil sells at a significant discount compared to the price that oil such as North Sea Brent (NSB) garners in the world's most lucrative markets. That discounting costs Canadians many billions of dollars each year.