NEB Report Shows Lack of Canada Pipeline Infrastructure

An annual report conducted by the National Energy Board said Canada’s oil market lacks the pipeline infrastructure needed to keep up with the country’s pace of production, causing Canada to be highly dependent on rail transportation of oil.

Canada, the world’s fourth largest oil and natural gas liquid producer last year, has faced several obstacles in efforts to increase pipeline infrastructure to help move growing product supply to markets, including Obama’s rejection of the Keystone XL pipeline last year and the Canadian prime minister’s aim to make the country greener.

"Despite [market] price declines, Canadian oil and natural gas production increased in 2015, as did supply in the United States," the NEB report said. "These and other market factors continue to present opportunities and challenges for Canadian energy pipeline systems."

Prime Minister Justin Trudeau, although reserved about adding pipeline infrastructure into Canada, is challenged with balancing a promise to preserve the environment and to move forward the energy economy. He has several energy projects to review, including deciding on Kinder Morgan’s Trans Mountain pipeline expansion by the end of this year.

United Press International