Showing posts from December, 2016

Leave Canada's oil in the ground (for now)

Recently, the Canadian federal government approved a pipeline expansion project that adds a second pipeline along an existing route from Edmonton, AB to Burnaby, BC. Here's the map: The pipeline has its own marketing site, touting the benefits: Helping us "keep up with the rising global demand for oil" and "increased tax benefits for all of Canada" sounds great, right? Except that it's misleading . While technically true that demand is rising: Demand is increasing much slower than previously projected Supply is increasing as fast or faster than demand And when supply increases faster than demand, prices fall . Most projections, including this recent one from , predict that oil prices will stagnate or even decrease over the next few years. It's also important to note that Alberta oil sells at a significant discount to the "regular" oil price you hear quoted in the news. For instance, when WTI crude fel