Benefits of Canadian Crude Oil Production Remain Untapped

Canada has recently seen substantial growth in crude oil production, and consensus forecasts portray even larger volumes of near-term production capacity due to developments in and around Alberta. However, the possibility of these newly unlocked reserves being sold into more profitable markets is questionable. The Keystone XL pipeline, a political lightning rod for different reasons in both the United States and Canada, is still pending due to regulatory review, but is viewed as necessary relief to producers with few export options. Regardless of the project’s eventual approval by President Obama, Canadian producers will need more export diversity in order to fully reap the benefits of newly accessible reserves. Download here