The escalating trade battle between Canada and Saudi Arabia highlights the need for more pipelines to move oil and natural gas around the northern nation to improve its energy security, according to the Canadian oil industry’s largest trade group.
Canada’s energy producers could supply a greater portion of their domestic market and satisfy more of world demand if they could move supply from producing regions to both coasts, Ben Brunnen, vice president of oil sands operations and fiscal policy for the Canadian Association of Petroleum Producers (CAPP) told Bloomberg News. Canada imported about $1.17 billion worth of oil and fuels from Saudi Arabia in the second quarter, according to Statistics Canada.
“Geopolitical tensions, whether they be with our largest trading partner, the U.S., or with other countries, illustrate the opportunity we have to improve energy security within our own borders and to expand our exports to global markets to ensure we are getting the best price for our products,” Brunnen said in an emailed statement.
(Bloomberg News)
