Alberta introduces legislation to restrict crude oil, gasoline exports to BC

BC Premier John Horgan and Alberta Premier Rachel Notley continue battle over Trans Mountain pipeline

Existing Trans Mountain shipments average 258,000 b/d of crude oil/blended bitumen and 44,000 b/d of gasoline and diesel

Fill up your tanks while gasoline is still affordable, British Columbia, because Rachel Notley just served notice she is prepared to turn off the petroleum taps in the very near future. The Preserving Canada’s Economic Prosperity Act, introduced into the Alberta Legislature Monday afternoon, is meant to punish the John Horgan government for obstructing the Kinder Morgan pipeline and will not likely face much opposition from the industry-friendly Official Opposition.

Premier Rachel Notley (at podium), cabinet, and caucus at press conference announcing “Preserving Canada’s Economic Prosperity Act.”

The Alberta government says that the legislation will give the government authority to, “if necessary, require any company exporting energy products from Alberta to require a license,” for a wide range of petroleum products including natural gas, crude oil, and refined fuels, such as gasoline, diesel and jet fuel.

The restrictions may be imposed on pipelines, rail, or truck.

As of December 2017, the existing Trans Mountain pipeline shipments averaged 258,000 b/d of crude oil/blended bitumen and 44,000 b/d of gasoline and diesel).

Based on internal government estimates, another 80,000 b/d of refined fuels were exported to British Columbia on other modes of transportation.

“This is about protecting the jobs and livelihoods of thousands of Albertans and our ability to keep Canada working,” said Notley in a press release.

“It’s simple – when Alberta works, Canada works. We did not start this fight, but let there be no doubt we will do whatever it takes to build this pipeline and get top dollar in return for the oil and gas products that are owned by all Albertans.”

Licenses will be issued by the Energy Minister Marg McCuaig-Boyd if determined to be in the public interest, which could include whether adequate pipeline capacity exists to “maximize the return on these resources produced in Alberta.”

Marg McCuaig-Boyd, Alberta energy minister.

Companies will not be automatically required to apply for an export license and will only be directed to do so if the Minister deems it necessary.

The government says that consideration will also be given to ensuring enough supply is maintained for Alberta’s needs.

And a license may be issued to a company but for a lower amount than it has previously been exporting.

“Every day we’re leaving money on the table due to a lack of pipeline capacity, and that needs to stop. We’ve said all along there would be no surprises for our energy sector, and we’ve engaged with them throughout this process,” said McCuaig-Boyd.

“The powers in this legislation are not powers Alberta wants to use, but we will do so if it means long-term benefit for the industry, for Alberta, and for Canada.”

Companies that do not comply with the license terms may face fines of up to $10 million per day. Individuals may face fines of up to $1 million per day.

Imports of products into Alberta are not currently subject to any restrictions.

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