Quote:
Originally Posted by Fuzz
You don't actually know what you are talking about. I'm not going to hold your hand, so you can go find the news articles yourself, but commercially it did not make sense. Alberta did not have enough production capacity to fill all the planned pipelines, including TMX and more importantly for TC, KXL, which financially was a far better bet, and hadn't been dragged into the anti pipeline talk at that point, where EE had challenges in QC. So they abandoned the EE line, as at that point it was conceptual, and KXL had the plans in the works. Planning and building a pipeline is a massive financial investment, so you want to get it right. If you have issues with EE, take it up with the business community and their profit driven motives, and stop blaming Canadian governments.
OK, can we please move on from this false history forever, now? Please?
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Hold up. Actually what you're saying doesn't make sense. Of course Alberta didn't have the production capacity to fill all those lines, because they didn't have the export capacity in the first place. Why would an oil company drill a well, just to have it sit shut in and not be able to sell the oil from it due to capacity constraints. Further, with simple supply and demand economics, if you have excess supply (production capacity) and the same demand (export capacity), you're going to drop the price of WCS unnecessarily to the detriment of all Alberta producers. With the 3rd largest oil reserves in the world, you really don't think we could fill the increased export capacity? It's just a matter of drilling more and implementing more EOR methods that make sense at better prices. What you really should be looking at is global demand (demand) vs Canadian export capacity (supply).