October 4, 2022

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What Canada is doing to push the United States to oil

The Prime Minister of Alberta, the province of Canada, which has the world’s third largest oil reserves, traveled to the United States to promote energy cooperation and lay pipelines. All details

The Prime Minister of the Western Canadian province of Alberta Jason Kenny on Tuesday held an inquiry into the US Senate Energy Committee to discuss energy cooperation between the two countries. He said Canada could increase its oil export capacity to the United States by more than a million barrels a day in two years, and urged the construction of a new cross-border pipeline to facilitate flows.

Kenny’s ratings

According to Kenny, Canada could send 200,000 extra barrels of crude oil south using the railways; With these, next year, a maximum of 400,000 barrels may be added due to the technical performance of the plants. Eventually, the completion of the Trans Mountain Pipeline (from Alberta to the west coast of the country) in late 2023 will expand Canada’s export capacity to 600,000 barrels per day.

The Ottawa federal government estimates that Canada’s pipeline oil exports will increase by 300,000 barrels a day by 2022.

Reliability and energy security

Kenny said building another pipeline with Canada would allow the United States to permanently free itself from energy imports from “hostile regimes.” Is Added President Joe Biden is urging Saudi Arabia to increase the supply of barrels to offset Russian crude oil emissions. According to the Prime Minister of Alberta, the White House should have turned to Canada: it is a friendly country, Calgary is closer to the United States than Riyadh and does not need to use the Fifth Fleet (one that oversees Persia). Gulf and Red and Arabian Seas) to patrol the Great Lakes, passing some important Canadian pipelines.

In fact, the United States is already almost independent of the Middle East for oil. Crude oil imported from the United States – leaving behind fertile domestic production – is actually the world’s first oil-producing country He is coming 62 percent from Canada and 10 percent from Mexico, two friendly countries within North America. Saudi Arabia has only 6 percent and Russia 3 percent.

Why a new hydraulic pipeline is impossible

Kenny wants a new pipeline between Canada and the United States that will benefit the Alberta oil industry. But his hope is unlikely to come true. Also speaking in Washington in recent days, Canadian Natural Resources Minister Jonathan Wilkinson announced that there was no discussion between the Biden administration and Justin Trudeau about this effect, and that a greater focus on fossil fuels would undermine change. To “clean up” energy and climate goals.

However, one of the first moves by Biden to become president was the cancellation of an oil pipeline between the United States and Canada: Keystone XL, which connects the city of Hardiste in Alberta with the city of Steel in Nebraska, which runs through the states. Montana and South Dakota. From Steel City, the pipeline will be connected to existing pipelines, allowing it to be transported to American refineries along the Gulf of Mexico Canadian coast, specially designed to process such properties. The executive order states that the Keystone XL is against the US national interest and undermines Washington’s credibility in the fight against global warming. Despite the changing circumstances, the Biden administration Do not want to Revive the behavior though.

The Democratic-ruled U.S. state of Michigan wants to ban another Canadian pipeline for environmental reasons: Enbridge Line5. Unlike the Keystone XL, this pipeline is well suited for Canadian energy security and for Michigan and Detroit airports.

Apart from the United States, Canada must also deal with internal resistance to oil pipelines, mainly from environmental groups and some indigenous communities opposed to the exploitation of their territories.

Canada exports about 3.8 million barrels of oil to the United States each day. Until recently, Alberta had to deal with an infrastructure shortage that prevented crude oil from “leaving” the province and reaching markets. The situation was resolved with the commencement of work on the Enbridge Line 3 oil pipeline, which allowed for a balance between export capacity and output volumes.

Look to the future

Minister Wilkinson was interviewed Reuters, Said his discussions with the White House were “more perspective”: that is, they go beyond fossil fuels and immediate needs and focus on “hydrogen, vital minerals and clean technologies”. Canada has significant reserves of battery minerals such as nickel and graphite. Moreover, Alberta, with its vast natural gas fields and geological systems for storing carbon dioxide, could become an important producer. Blue hydrogen.

On Tuesday, during Kenny’s trial, the U.S. senator Joe Munchin (Chairman of the Energy Commission) said it makes “no sense” to push electric vehicles when they are controlled by basic industrial components. China. He said the United States and Canada should work together to create supply chains for important minerals in North America.

Last month Biden implemented a Cold War law directly in the United States to stimulate the production of important minerals such as copper, lithium, nickel, graphite and cobalt. “We must stop relying too long on China and other countries for inputs that will fuel the future,” he declared. The White House project relies on the contribution of Canada and Mexico, regional integration and Friend-shore.

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