Pipeline Hurdles Thwart Canada's 'Energy Superpower' Ambitions

Canada's plans to become an 'energy superpower' are facing a significant hurdle as pipeline firms propose billions of dollars in new projects, but oil sands companies are reluctant to commit to production expansions due to ongoing uncertainty around climate policies and long-term global demand.

The country's export pipeline capacity is set to increase by 45% or 2.25 million barrels per day by 2035 if all proposed projects are built, but filling those pipes would require a near-doubling of Canada's current annual average oil production growth rate.

Canadian Natural Resources and Suncor Energy have expressed reluctance to accelerate plans for production increases, while Enbridge has postponed plans for a second phase of its Mainline pipeline expansion due to lack of customer commitments.