Abitibi Metals boosts resource by 62% at B26 polymetallic deposit in Quebec
Indicated resources increased to 11.3 million tonnes from 6.9 Mt.
The claim that building more pipelines to carry Canada’s oil sands production to ports for export will unlock significantly higher prices for bitumen is not supported by either past or current market conditions, a new study shows.
According to Jeff Rubin, senior fellow at the Centre for International Governance Innovation, overseas markets pay even lower prices for bitumen than in North America, so there is no economic case for additional pipeline capacity to tidewater or expanded oil sands production.
In his report, Rubin says that global agreements to reduce global carbon emissions over the next three decades will also reduce the size of future oil markets, not to mention the emerging push for electric vehicles.
CIGI argues that there is no economic case for additional pipeline capacity to tidewater or expanded oil sands production.
As expected, the government of the province of Alberta, Canada’s oil sands production central, disagrees.
“It has never been more important for us to get new pipelines built,” Premier Rachel Notley said Thursday at the ribbon-cutting ceremony for a $1.6 billion expansion project led by Japan Canada Oil Sands.
She said she believed that more pipelines are needed to tap deeper into the growing Asian economies. Currently, about half of Canada’s oil exports are destined to the US, but the country is working on breaking the land lock condition and so expand its shipments to new markets.
Another study released by the International Energy Agency (IEA) stresses the need to find alternative ways to channel oil sands production towards new markets.
In its monthly oil report released Wednesday, the Paris-based agency says Canada’s oil output could edge closer to the 5 million barrel-per-day milestone next year.
The country’s total oil production is predicted to increase by 290,000 bpd this year, and by another 200,000 bpd in 2018 to reach 4.95 million bpd, and could surpass 5 million bpd in the second half of the year.
Canada’s oil sands output has increased in recent year as projects that were commissioned years ago have come online. And if the momentum continues, the IEA says, the nation could displace Iraq as the world’s fourth largest producer after the US, Russia and Saudi Arabia.
Alberta’s oil sands hold the world’s third-largest crude reserves, but they are also among the most expensive operations due to their remote location and energy-intensive production methods.
10 Comments
Altaf
A comparison of Venezuela and Canada in terms of what can be done.
Both have some of the world’s largest oil sands reserves. People of Venezuela are hidden from exposure to knowledge by socialist governments. People of Canada are so much advanced in knowledge that they feel opposing any project in the name of environment is fashion.
For any neutral third country investor it is easy to educate and make Venezuelans aware of the business / employment opportunities to change their life style from socialist to modern than trying to convince the overly clever Canadians who are hell bent on remaining in cave dwelling mentality.
If such thing happens (it is a reality as Venezuela is already imploding), by the time Canadians recollect their senses and agree to build pipelines to export their oil, the new era will arrive and global community has already gone past the age of oil.
Canadians need to learn from some of the land locked central asean countries who are making it possible to let their oil reach international markets through other countries. All Canadians need to do is allow a pipe line from Alberta to BC ports.
They have resources, land, money, technology. All that is lacking is a global outlook.
They refuse to grow from being a satellite of USA into an independent nation. Even when Americans are making fun of them and looking down on them, they feel comfortable. All the studies and research is a conveniant excuse to resist change.
Art Easian
Jeff Rubin : Read Rick Georges book Sun Rise and inform yourself about pipelines and independence. The Centre for International Governance or government : indeed ???
Kaypay
Canada has the second largest oil reserves in the world and yet we burn oil imported from countries that support terriost like Venezuela, Saudi Arabia and Iran because a few tree huggers are afraid of a oil spill. And a government without the balls to make a decision for the benefit of all Canadians, How short sighted, foolish and selfish.
AMH4
“afraid of an oil spill” – really? That’s what you think should be done? We should all ignore the devastation, especially in the ocean, of a dilbit spill. You think that money is more important than life? It’s ludicrous to pretend that the harmful results of oil (actually dilbit, which is 1000 times worse than oil) spills should be ignored! I hate greed – it makes people stupid.
patentbs
Too much money in being an anti. Meanwhile Canada buys offshore oil and uses defect budgeting to pay for things.
SMART.
earlrichards
Kinder Morgan’s pipeline is a stupid idea to start with, because there is no equipment to clean-up a filthy, tar sands spill. This stupid idea is an insult to the intelligence of the British Columbian people. The dilbit is riddled with cancer-causing toxins. Dump KM, to save beautiful BC.
Ken Lawson
Yes we do keep your nose out of it
John Galt
In most mining operations tons of dirt laced with toxic elements must be brought to the surface, then stored especially for the rare earth and precious metals. This means that mining of lithium, cobalt, neodymium are as dirty as the removal of fossil fuels sources.
So when Mining businesses focus on attacking the fossil fuel industries it is so as to delay environmentalists from attacking all mining operations.
jae
They are WORSE b/c the burning releases more CO2 than crude oil.
jae
Sick. disgusting men! Destroyers of Worlds! Shame on you all for destroying the planet. That crap is going to make the Greenland ice sheet melt from all the soot on the snow! It sure appears as if they are trying to increase ice melt on purpose! The profits need to go to the states that are being destroyed by pipelines! Keep your damn pipelines out of the midwest. We don’t want them!