FILE - In this June 12, 2019 file photo demonstrators walk to Andrew W. Bogue Federal Courthouse as they protest against the Keystone XL pipeline in Rapid City, S.D. (Adam Fondren/Rapid City Journal via AP, File)

U.S. analysts agree Canadian energy projects are harder to complete

Experts: Pipeline projects in Canada tend to cross more borders, Indigenous territories than in U.S.

The perception that Canada is a more difficult place to build major energy projects is accurate, according to U.S. analysts, although opposition to such projects is growing in both countries.

Speaking in the wake of a decision by Teck Resources Ltd. to cancel its $20.6-billion Frontier oilsands mine, they say geography is part of the problem as pipeline projects in Canada tend to cross more borders and Indigenous territories than typical projects in the U.S.

Adequate pipeline access from the Alberta oilsands to export markets was one of the issues Teck said it must solve in order to proceed to construction of the mine.

New York-based analyst Phil Skolnick of Eight Capital says pipelines to bring oil and gas from the burgeoning Permian region in northern Texas to the Gulf Coast, for instance, can be built entirely inside state borders.

Pipelines that cross several state borders, however, such as the Keystone XL pipeline between Alberta and the U.S. Midwest, have been delayed by opposition on the U.S. side of the border after easily winning approval on the Canadian side.

Jennifer Rowland, a senior analyst in St. Louis, Mo., for Edward Jones, says Indigenous and environmental opposition to the 1,930-kilometre Dakota Access pipeline resulted in delays in 2016 and 2017 but it was built after law enforcement agencies enforced its regulatory approvals. She says the reluctance of Canadian law agencies to provide similar enforcement for approved projects is a competitive disadvantage.

READ MORE: Teck CEO says Frontier withdrawal a result of tensions over climate, reconciliation

“We’re talking about some pretty long-haul pipe that touches a lot of areas, a lot of communities, a lot of different Indigenous groups and I think that’s where it starts to get really messy, really quickly,” she said.

“And that, I think, is part of the bigger challenge in Canada than in the U.S.”

The Canadian Press

Like us on Facebook and follow us on Twitter

Oilsands

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

North Island College brings marine training to Port Alberni

Marine Training instructor Captain Harry Johnston joins NIC team

COVID-19: Isolation exemptions to frontline workers a danger to patients, say Island Health employees

Staff exempt from self-isolation upon return from international travel according to Island Health

Tofino and Ucluelet distilleries step up with hand sanitizer

Mass supply delivered to emergency operation centres in Tofino, Ucluelet, Bamfield and Port Alberni.

B.C. COVID-19 contact restrictions working, Dr. Bonnie Henry says

’Not out of the woods yet’ as next two weeks are critical

Donors in Port Alberni called on to give blood

Donation event scheduled for April 7 to 9 at Italian Hall Events Centre

An ongoing updated list of Alberni Valley events affected by COVID-19

Has your event been cancelled or postponed? Check here

B.C. VIEWS: Small businesses need our help

Just as integral in neighbourhoods in Vancouver and Surrey as they are in Prince George or Kelowna

‘Tremendous’ response from blood donors has supply keeping pace with demand

About 400,000 of Canada’s 37 million residents give blood on a regular basis

Morning world update: Cases surge past 600,000; positive news in Germany

Spain suffers its deadliest day as Germany considers April 20 to possibly loosen restrictions

VIDEO: Penguins roam empty halls of Vancouver Aquarium

COVID-19 has forced the Vancouver Aquarium to close access to guests – leaving room for its residents

COVID-19: Qualicum Beach youngster gets car parade for his sixth birthday

Friends get creative after party cancelled due to ongoing pandemic

Kids get back to learning in B.C., online

Ministry of Education rolls out new tool for school

Most Read