Lack of pipeline capacity costing Alberta billions

By The Canadian Press
March 7, 2018 - 6:38am

CALGARY- A report from the University of Calgary estimates a lack of pipeline capacity is costing Alberta and oil producers billions of dollars in lost revenue.

Research associate Kent Fellows of the university's School of Public Policy says pipeline capacity constraints have dramatically increased the price difference between what Western Canadian oil gets relative to West Texas Intermediate.

He says the discount prior to 2013 was generally between nine and 13 per cent of the W-T-I price,but as of this February it was at 47 per cent.

Fellows estimates the difference is costing private companies five-point-three-billion dollars a year, the Alberta government seven-point-two-billion in lost revenues and the federal government 800-million.

(The Canadian Press - CFFR)

 

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