Report Challenges Need for Proposed West Coast Oil Pipeline

A new report by the Institute for Energy Economics and Financial Analysis suggests that Alberta's proposed West Coast oil pipeline may not be necessary, as existing pipelines and planned upgrades could handle Western Canadian oil production without a major new corridor.

The report, released just one month before the federal government is expected to decide if the project is a national interest, analyzed four scenarios of oil production through 2050 and found that there would be enough pipeline capacity in three out of the four cases.

According to Mark Kalegha, an energy finance analyst and co-author of the report, 'If there's a deficit, then we could say there's a need for a pipeline to move these products out.' However, he notes that current policies suggest production will level off before additional capacity is needed.

The report highlights several projects that could add capacity without building a new pipeline, including Enbridge's Mainline Optimization Phase 1 and the expansion of the Express-Platte system. These projects would add approximately 180,000 barrels per day to existing pipelines.