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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Wendy Lush
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Wendy Lush

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.

NancyW
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NancyW

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… Read more »

Eric Blair
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Eric Blair

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… Read more »

NancyW
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NancyW

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… Read more »

shawn harris
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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… Read more »