Internal Divisions could Burst Canada's Oil Bubble

photo

Mining at the Alberta oil sands.

By Daniel J. Graeber: Provincial leaders in energy-rich Canada are reviewing ways to send oil from Alberta province to eastern refineries in an effort to ensure energy independence. Most of the refineries in the country's east process imported, and more expensive, crude oil. Leaders in the west, meanwhile, have objected to proposals to ship tar sands from Alberta to port cities because of environmental fears. Supporters of the move east say it's a "good story" for Canada, though many of the country's ambitious energy plans on the books are up against fierce opposition. Provincial leaders from Alberta and Quebec last week agreed to set up a working group to examine ways to send tar sands oil to refineries in Quebec, some of the largest in Canada. Pipeline companies Enbridge and TransCanada, for their part, are looking to modify some of their existing pipeline networks to move oil away from the Alberta market, which depends in part on the United States. Greg Selinger, premier for the government of Manitoba, Alberta's eastern neighbor, said the shift east would be "a good story" for booming Canadian oil markets...Continue reading...