Quote:
Originally Posted by Weitz
That only works if you can send the oil elsewhere. Since we can’t, the consumer has more power to decide the price. Hence the differential we already suffer under. Any export tariff is likely going to just increase the differential and hurt Alberta, while not changing much on the USA side.
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The industry can't physically pivot that fast. Refineries are working at their peak with American oil, so until 'drill baby drill' happens, there is no more domestic supply. The only other import option is Venezuela, with the logistics of a pivot to OPEC oil taking too long to implement.
It's a radical, but pretty safe short term move.
The danger is that America increases domestic supply in response, but they plan to do that anyway. Canada should really look at the feasibility of an East pipeline, just based on the likelihood that demand from the States wain, no matter what we do.