Current Canadian pipeline infrastructure is sufficient to meet export demand until at least 2025.

Is there an economic need for the proposed Kinder Morgan pipeline?

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There is no economic need for the proposed Kinder Morgan pipeline. We do not need to expand current pipeline infrastructure to export the oil we have available for export.

  • Based on current supply and market predictions, current pipeline and rail infrastructure will suffice to transport oil available for export to market until at least 2025, potentially well beyond it (Allan, 2016, pp. 2-3).
  • Experts expect future supply to be much lower than the NEB anticipated because the price of oil is consistently decreasing (Allan, 2016, p. 2).
  • The NEB also did not consider how much supply will decrease once Canada implements the commitments it made to counteract climate change
    • The Paris Agreement ratified November 4, 2016 by 197 countries is designed to limit climate change and can be expected to dramatically reduce fossil fuel reliance and market conditions for oil (Allan, 2016, p. 40).
    • Alberta introduced Legislation to cap greenhouse gases resulting from oil sands production to 100 MT on November 1, 2016 can also be expected to have effects of this regard (Allan, 2016, p. 40)

 

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