One of Ottawa and Alberta’s main arguments in defence of the Kinder Morgan Trans Mountain pipeline — that Alberta oil sold to Asian markets will command a higher price — is a myth, according to a new report released Wednesday by scientist and energy resources expert David Hughes.
Contrary to the common claim, Hughes’ research, conducted on behalf of the Canadian Centre for Policy Alternatives and the Parkland Institute, found “a ‘tidewater premium’ does not exist.”
“My research shows that Canada’s oil is not being unfairly discounted by the U.S.,” Hughes said.
“Oil prices internationally and (Read more…) North America are now nearly identical. That means Canadian crude producers are likely to receive lower prices overseas than in the U.S. because of the higher transportation costs involved in transporting bitumen by pipeline to B.C.’s coast and then exporting it by tanker.”