IEEFA Warns West Coast Pipeline May Not Pay for Itself Amid Declining Oil Demand

A new analysis by the Institute for Energy Economics and Financial Analysis (IEEFA) suggests that the proposed West Coast Pipeline may not be economically viable due to declining global oil demand.

The report, released this morning, concludes that the pipeline's cost of $35.2- to $43.7-billion is unlikely to be recovered as the energy transition accelerates and electric vehicles gain popularity.

According to IEEFA, existing or planned pipeline expansions would be sufficient to meet any future demand for export capacity, making a new large-scale export corridor unnecessary.

The report also notes that oil sands producers would face higher access fees, or tolls, on the proposed pipeline, which would represent a net loss for them.