REPORT: Lack Of Pipelines Making Canadian Oil Less Valuable, Weakening Our Nation

Price discount gap surges to half-decade high.

Canada’s lack of pipeline capacity – caused in large part by Justin Trudeau’s decision to cancel the Energy East pipeline by making it basically impossible for the company to go through with it and his cancellation of the Northern Gateway pipeline – is having a severely damaging impact on our country.

And it weakens our nation in more ways than one:

While cancelled pipelines have a cost in terms of lost jobs and lost future profit, they also cost our entire country by weakening the price of current Canadian oil.

That’s because the lack of pipeline capacity leaves Canada more and more reliant on the US as our main customer. That reliance puts us in a situation where the US knows we have to sell to them, giving them leverage to get the oil for a lower price.

It also means there is more and more product on the market, while the ability to get that product to customers is simply not there. Unsurprisingly, that leads to a lower price for Canadian oil.

That’s the Price Discount that is costing Canada billions, the gap between what our oil sells for and what other countries are selling their oil for.

And now, that price discount gap is bigger than at anytime in the past decade.

Western Canada Select oil is now trading at $38.29 per barrel as of Tuesday. Compare that to West Texas Intermediate, which is trading at about $70.

It’s a gap of over $31, the worst it’s been since 2013. And while the previous Conservative government tried to close that gap by expanding the number of pipelines in our country, Trudeau moved things in the opposite direction, pandering to the radical left and making it nearly impossible to get pipeline projects done.

This makes Canada poorer, weakens our national sovereignty, and gives foreign nations more leverage over us. And despite what should be a clear lesson that we can’t rely on countries like Saudi Arabia for oil, the Trudeau Liberals only seem to be doubling down on their disloyal and disastrous energy policies.

Spencer Fernando

Photo – YouTube

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5 comments Add yours
  1. On top of that Texas-based Kinder Morgan got paid a whooping $4.5 billion for the Trans Mountain Pipeline – and for what. The expansion, ie new pipeline, may never happen. Trudeau (taxpayers actually) bought a lemon and K-M is laughing all the way to the bank.

    Everything Trudeau touches turns to dust. Everything.

  2. Ontario used to have at least 2 oil refineries here, years ago they were shut down, the one that was in Oakville used to have fires happening when I was young, at the time many people felt this was on purpose? Very expensive houses stand on that large property now, on the lake shore. I do not know if they refined Canadian oil, but it was too close to Toronto and how fast that area was expanding. The other refinery was down by Windsor and Chatham, and I do not remember why it was closed, or where the crude came from.
    Canada needs to again start being self sufficient, we used to be, but stopped, why?
    We really need those safe pipelines, east, west, south and north, we should be refining our own oil, we should be farming correctly again and supplying most of our own safe foods, not industrial farming as that is not healthy food, we used to store grains in Thunder Bay mostly, a safety net, enough to feed our country for five years if needed, we have no safety net now either. We used to manufacture our own cars in Canada, Canadian owned businesses, but sold that all off too. etc. We used to have a safe country but we seem to keep voting for unsafe lying governments that, from within are destroying our country, not caring about Canada and what we should be doing here where we Canadian citizens are.
    Are pipelines the safest way to move oil? Yes, so why don’t we start fighting to get our country back, and put it in shape. Start with the oil and gas, lets refine it ourselves, start progressing again, it is a large country, we have many out of work and too many arriving to look after, as Canada idles and sells itself out, and too much really un needed debt, so if we get started with the things that make us prosper, stop giving all our money away, use it at home to help Canadian businesses get going again, with the right government, we could again become a proud developing nation, out of debt, lots of jobs, become strong again.
    We need to get rid of this self entitled pig trough feeding off of us, greedy puppets, that are now hurrying to destroy us, again we really need a careful common sense leader, Canadian government for the people of Canada, we should all be prosperous and protected and independent and happy working and making this Canada for us, not the destructive foreign run greedy power hungry self important drama queens stopping us, while insulting us and our friends in other nations around the world, and making them enemies.

  3. That’s not all Spencer. We only have the US as our customer for oil which in turn refines our Canadian oil and sells it back to us with a huge market-up. And now with the Saudi’s making noise I can see Canada dropping purchasing Saudi oil and instead buy more oil from the US. Trudeau just does not get this and is obviously been lead around by the nose by his good buddy, Gerald Butts.
    Someday this will be covered in an expose written by a Trudeau insider and we will ask ourselves “how did we let this happen”. Of course there will be no mention of web site like Spencer’s and the Rebel on how they did bring to light what was going on.

  4. Spencer, couldn’t you request that Andrew Scheer give you, as a very good, common sense, honest investigative reporter, with many followers, an interview, or better a question and answer interview, so we your fans could know what Andrew Scheer is all about, as no one really knows as our mainstream media only says negative mostly comments or nothing and Mr. Scheer must be doing or organizing and planning etc. hopefully then, we would then be more comfortable with what to expect from him, it would help us and it would help him. But mostly, and hopefully, it would bring your site and thoughtful writing to be more mainstream, where it should be.
    I personally email the Conservatives Federally and and Ontario’s PC’s ( who I love) and have told them all about you for honest reporting. Andrew Scheer needs to get his words and agenda out there, very soon.

  5. Severely discounted Canadian produced oil, is just more proof of Trudeau’s incompetence when it comes to all matters economic. To quote Trudeau,”No country in the world would leave billions of barrels of oil in the ground”, yet that is exactly what he is doing, by way of crushing regulations and outrageously high taxes on the oil industry. Another quote of Trudeau is,”the oil industry should be phased out”, and that quote goes to support Trudeau’s socialist leftist ideology, that believes that Canadian oil and for that matter all oil production and use should be stopped and replaced with the fantastical faith in “green energy”, that will somehow transform and save the world from extinction.
    Well, so far everything Trudeau has said and done, has had the exact opposite effect, an economy heading towards a recession, massive loss of jobs and over 100 billion dollars in lost foreign direct investments and a very uncompetitive business sector and paying higher taxes. And yet no sign of the so called “trillion dollar green energy economy, that Trudeau said would result by destroying the oil industry and transitioning towards a green economy. Yet Trudeau holds a strong faith that by shutting down business and destroying the oil industry with high taxes and regulations, Canada will have a stronger more prosperous economy; obviously he must be living in another, as of yet unknown Canada. Vote him out in 2019.

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