Pages tagged "Ian Anderson"
Robyn Allan - Posted: Feb 1st, 2014 - Vancouver Observer
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Kinder Morgan Canada President Ian Anderson told analysts in Houston, Texas last week that the Canadian economy is losing big because of limited access to markets—a problem he says his $5.4 billion Trans Mountain expansion will help solve once the project receives regulatory endorsement and Harper Cabinet approval. He expects that could be as early as mid-2015 with a late 2017 in service date for the new pipeline.
Explaining the drive behind oil producer demand for BC west coast access, Mr. Anderson told his audience “tight capacity’s going to be out of the Western Canadian Sedimentary Basin for some time…and as a result of limited access to global markets we continue to see discounts between Brent, WTI and Canadian Mixed Sweet blends… the differentials Canadian producers see adds up to about $50 million a day in lost revenues and profits to the Canadian economy.”
What Mr. Anderson didn’t do is connect the dots. If he’s right, and new, heavy oil pipelines like Trans Mountain raise oil prices and remove the discount, there will be a huge wake-up call for consumers at the pumps. We all know that when crude oil prices are higher at the refinery gate—which is exactly what would have to take place if Canadian producers are paid more for their oil—Canadian refiners faced with these higher costs pass them onto consumers, otherwise their profits fall.
Fifty million a day in “lost” producer revenues translates to an average of $25 per barrel. If crude prices rise by that amount, when refineries pass it on it would mean roughly 15 cents a litre at the gas station.
AN EMAIL SENT by the president of Kinder Morgan Canada to the B.C. premier’s office reveals in frank language the challenge for oil companies posed by First Nations opposing pipeline projects.
The existing Trans Mountain pipeline crosses fifteen Indian Reserves in BC and traverses the traditional territory of many more,reads a letter by Ian Anderson dated August 10, 2012. “Increasingly, our operations are affected by the many and complicated issues surrounding Aboriginal rights and title.”
It continues: “Liquefied petroleum pipelines such as Trans Mountain…have the added responsibility of addressing environmental risk of oil spill. These are not easy issues to resolve and, in some cases, may not be able to be resolved…despite our best efforts it is possible that we will not have agreements with all those affected.”
The email was published online by the provincial government in accordance with access-to-information legislation. Kinder Morgan Canada did not respond to a request for an interview.