$43-Billion Pipeline Questioned as Global Energy Transition Looms

A new report from the Institute for Energy Economics and Financial Analysis (IEEFA) questions whether Canada's oil industry needs Alberta's proposed $43-billion West Coast pipeline. The think tank argues that existing pipelines and cheaper expansion projects can handle Canada's expected oil-production growth.

The IEEFA report states that the proposed pipeline 'is unlikely to be needed to meet capacity needs in the future.' It also warns that the global energy transition makes rapid output growth less likely, which would undermine the pipeline's potential benefits.

According to the report, 'the wider market conditions required to support rapid output growth are far from certain and the global energy transition appears to make them less likely.'