Claiming it could no longer abide the Obama administration’s five-year refusal to approve construction of the Keystone XL pipeline designed to bring 830,000 barrels a day of much-needed Alberta shale oil to U.S. refineries, the Canadian government recently approved plans for a huge new pipeline and port project to ship that oil to Asia instead.
When completed, the $7.9 billion Enbridge Northern Gateway Project, approved by Canada’s federal government on June 17, will consist of an environmentally safe, 730-mile oil pipeline. It will be capable of moving 600,000 barrels a day of Alberta oil to the pacific coast town of Kitimat, British Columbia, where a new state-of-the-art super tanker port facility will be built to ship the oil to thirsty Asian ports. Continue reading
The flood of North American crude oil is set to become a deluge as Mexico dismantles a 75-year-old barrier to foreign investment in its oilfields.
Plagued by almost a decade of slumping output that has degraded Mexico’s take from a $100-a-barrel oil market, President Enrique Pena Nieto is seeking an end to the state monopoly over one of the biggest crude resources in the Western Hemisphere. The doubling in Mexican oil output that Citigroup Inc. said may result from inviting international explorers to drill would be equivalent to adding another Nigeria to world supply, or about 2.5 million barrels a day. Continue reading