Canada's West Coast Pipeline Seen as Unnecessary Risk
A new report by the Institute for Energy Economics and Financial Analysis (IEEFA) suggests that Canada's proposed $43-billion West Coast pipeline may not be needed to meet capacity needs in the future.
The report, released on Tuesday, argues that existing pipelines and cheaper expansion projects can handle Canada's expected oil-production growth. The proposed pipeline is intended to transport one million barrels of oil per day from Alberta to the West Coast for export.
The IEEFA analysis states that 'the wider market conditions that would be required to support rapid output growth are far from certain and the global energy transition appears to make them less likely.' This implies that even if Canada's oil production increases, it may not be in demand due to a shift towards cleaner energy sources.