$31B Boon: New Oil Pipelines Could Bolster Canadian Economy

A new joint study by Studio.Energy and ATB Economics concludes that bolstering oil pipeline capacity in Canada could generate a massive bump in investment, increase exports, and create more jobs.

The study estimates that adding 1.5 million barrels per day of additional pipeline capacity out of Western Canada would see annual real gross domestic product (GDP) higher by an estimated $31.4 billion, or 1.1 percent on average, between 2027 and 2035.

When it comes to employment, the report indicates more pipelines, the proposed Pathways carbon capture network, a federal prerequisite for building a new oil artery to the Pacific Coast, and increased industry investment to fill the lines would support 112,000 additional jobs on average in Canada during the same time frame.

Peter Tertzakian, founder of Studio.Energy, said 'There's a big prize here, in terms of boosting investment and creating long-term economic prosperity.' ATB chief economist Mark Parsons added 'I can't think of anything else that would give such a large jolt to the Canadian economy over a 10-year period.'

The report looks at the economic implications of the Alberta government's proposal to build a new bitumen pipeline that could ship one million barrels per day (bpd) to the Pacific Coast for export, along with plans by Enbridge, Trans Mountain Corp. and South Bow Corp. to increase capacity on their own systems.