Long-standing problems with transport pipelines in Canada continue to create serious obstacles for the local oil industry. Now big companies refuse to expand their production capacity because of the impossibility of additional supplies outside the country. The lack of new pipeline capacity led to a decline in the Western Canada Select oik variety at the end of last year when it was traded to 15 USD per barrel, while the price of West Texas Intermediate was over 55 USD per barrel.

In response, the authorities in Alberta managed to help the WCS recover by accepting cuts in production, backed by the US sanctions imposed on Venezuela.

In the end, pipeline issues have remained unresolved.

The impossibility of adding new capacity to the pipeline network is a serious burden on the activity of oil producers.

The local company Enbridge delayed the launch of its third pipeline by the middle of 2020, although it was initially expected to enter into operation this year.

On Friday, Imperial Oil announced that it slowed production capacity at Aspen field due to “market uncertainty” linked to manufacturing cuts imposed by the authorities.

MEG Energy Corp said the delay in Enbridge’s third line would hinder the opportunity to continue with the implementation of its Christina Lake drilling project.

Previously, it was reported that Canadian Natural Resources may postpone the start date of the Kirby North project and the Primrose initiative.