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Stalled pipeline projects costing Canada’s oil companies $30-$70 million each day: Report

February 7, 2013 12:50 PM
BOE Report Staff

 

CALGARY – A new report says the inability to get oilsands crude to the right markets is costing the Canadian economy dearly.

The Canada West Foundation says each stalled pipeline project means a loss of between $30 million and $70 million every day.

Senior economist Michael Holden says if pipeline projects such as Keystone XL, Trans Mountain and Northern Gateway don’t go ahead, Canada would miss out on $1.3 trillion in economic output between now and 2035.

The report was paid for by the Saskatchewan government, which strongly supports projects such as Keystone XL, a long-delayed TransCanada Corp. (TSX:TRP) proposal to connect Alberta crude to the U.S. Gulf Coast.

The think-tank says most of Canada’s export pipelines currently connect to the U.S. Midwest, but pipeline access to the Eastern Seaboard, the Gulf Coast and Asia are more important in today’s market.

The report calls on provinces to work together to tackle the problem, the way Alberta Premier Alison Redford and New Brunswick Premier David Alward did earlier this week in touting an eastbound oil pipeline.

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