Monday, June 30, 2008

Tar sand oil backlash could speed up pipeline to the west


The American political scene is heating up the rhetoric when it comes to the development of oil out of the Alberta tar sands.

With the process of development one of concern to the environmental lobby of the USA, the developments north of Fort McMurray are suddenly becoming election year talking points, with no less a candidate for office than the anticipated Democratic nominee Barack Obama, making suggestions that Alberta tar sand oil may be the target of his administration as it weans America off it's oil dependency.

While it seems incomprehensible in this economic era, that a nation as dependent on oil as the USA is would turn its back on perhaps the safest supply of oil in the world for their needs, one must never doubt the power of an election year declaration.

And while that decision to end Alberta tar sand imports may very well be the case come January 2009, it may develop into a construction boom for BC, as Alberta's oil producers rush to move a pipeline from Alberta to the coast to ship the oil that America apparently won't want to markets that will want it.

A pipeline to either Kitimat or Prince Rupert is in the talking stage these days, one part big stick for the American government and one part realistic business plan to take advantage of the thirst for oil in the suddenly demanding markets of Asia.

The only roadblock other than the convenience of just shipping the oil south, is that there is an unofficial moratorium of sorts on the passage of oil tankers into coastal BC waters.

It will be worth watching with interest how this controversy evolves, if the US does decide to take a pass on the tar sands production, we could very well see a push to lift any restrictions on shipping oil out of BC ports.

While we wait to see how that possible situation shakes out, there's some fascinating reading on the topic available off the web...

Globe and Mail-- We are the best supplier
Calgary Herald-- Many buyers