“Whatever exports Saudi Arabia cuts from Canada will likely be directed to other import markets, which in turn will free up supply on the part of some other country to be able to export to Canada,” Michael Ervin told BNN Bloomberg.
Irving Oil, the company owned by the billionaire Canadian Irving family which operates the largest oil refinery in the country, could easily replace Saudi oil says a refining industry expert.
Saudi oil makes up roughly 40% of Atlantic Canada’s crude oil.
Speaking to BNN Bloomberg, Michael Ervin said “Whatever exports Saudi Arabia cuts from Canada will likely be directed to other import markets, which in turn will free up supply on the part of some other country to be able to export to Canada.”
“It would not be difficult at all,” for the Saudi oil to be replaced.
According to Richard Masson – who used to run the Alberta Petroleum Marketing Commission – a combination of Alberta medium crude oil and U.S. Gulf Coast light crude oil could fill the gap:
“That happens quite commonly for refineries; in fact, there are many companies whose only business is to buy different grades of crude and blending them together to fit individual refineries’ needs.”
Of course, this almost certainly won’t happen on its own, since Irving Oil would make less profit if they replaced the Saudi barrels:
“I don’t think they will have any trouble finding replacement oil to the Saudi oil, but it will likely be more costly for them to source,” said Masson.
So, the federal government would have to step in and ban Saudi oil – something the weak Trudeau government has shown no willingness to do.
Additionally, the reason we don’t have the Energy East pipeline in the first place is because the Trudeau government essentially cancelled it by rewriting the permitting procedure to make it nearly impossible to go forward. Before that cancellation, Irving Oil had expressed support for Energy East in 2016:
Still, it’s important to note that there is no reason Canada needs to use Saudi oil. If we get a government in power that actually serves Canada’s interests by expanding our pipelines and expanding refining capacity, we wouldn’t need to use oil from anywhere else but our own country.
Photo – YouTube