The Cost of Pipeline Constraints in Canada.
The Fraser Institute has published an excellent new report on the costs surrounding the current stall in pipeline projects, and the effects this has on the Canadian economy.
Entitled The Cost of Pipeline Constraints in Canada, the report by Elmira Aliakbari and Ashley Stedman finds that Canada’s lack of adequate pipeline capacity has imposed a number of costly constraints on the nation’s energy sector, including an overdependence on the US market and reliance on more costly modes of energy transportation. These factors result in a decreased demand for Canadian hydrocarbons, which in turn results in loss of revenue for the energy industry and impacts the economy as a whole.
This isn’t good news for Canada, or for the planet.
Canada is the best in the world at responsibly harvesting and transporting the energy we need. When our product faces delays due to poor infrastructure or ineffective government policies, the effects increase global emissions. When Canada produces less energy carbon leakage occurs, resulting in the production of energy being displaced to other countries with less stringent environmental protections.
It’s by exporting our energy across the globe that Canada can help create better economic opportunities at home and abroad. By creating favorable conditions for Canadian producers to harvest and export Canadian energy, we can do our part to help the planet.
The planet needs more Canada, not less.
You can read the full study here.