Keystone XL no longer crucial for Canada's oil exports, says natural resources minister
The prospect of the Keystone XL pipeline being approved by the incoming Trump administration will have little effect on Prime Minister Justin Trudeau's plans to get Canada's oil to market.
Federal Natural Resources Minister Jim Carr says Canada has moved on to a whole different plan for its oil exports, and the once crucial Keystone XL pipeline has become less of a priority.
"It doesn't get oil to export markets in Asia," said Carr as he left his government's cabinet meeting Tuesday.
"It's a goal of the government of Canada to expand its export markets."
President-elect Donald Trump has promised to grant a permit to TransCanada's Keystone XL project that would carry more than 800,000 thousand barrels of oil a day from Alberta to refineries in Texas. President Barack Obama rejected the pipeline last year.
Almost all of Canada's oil is currently being exported to the U.S. Pipelines that carry oil from Canada are at capacity, so a lot of it is going by rail. Canadian oil also faces a significant discount in U.S. Midwest refineries because it's heavier and more expensive to refine than light crude.
Carr said his government wants to take a new approach.
"I think that if you listen to what the prime minister has said about moving our resources sustainably, the importance of responding to the demands in other export markets, and not to solely rely on one major market," he said. "That is the sensible approach to take and nothing has changed."
Keystone XL no longer crucial for Canada's oil exports, says natural resources minister - Politics - CBC News
The prospect of the Keystone XL pipeline being approved by the incoming Trump administration will have little effect on Prime Minister Justin Trudeau's plans to get Canada's oil to market.
Federal Natural Resources Minister Jim Carr says Canada has moved on to a whole different plan for its oil exports, and the once crucial Keystone XL pipeline has become less of a priority.
"It doesn't get oil to export markets in Asia," said Carr as he left his government's cabinet meeting Tuesday.
"It's a goal of the government of Canada to expand its export markets."
President-elect Donald Trump has promised to grant a permit to TransCanada's Keystone XL project that would carry more than 800,000 thousand barrels of oil a day from Alberta to refineries in Texas. President Barack Obama rejected the pipeline last year.
Almost all of Canada's oil is currently being exported to the U.S. Pipelines that carry oil from Canada are at capacity, so a lot of it is going by rail. Canadian oil also faces a significant discount in U.S. Midwest refineries because it's heavier and more expensive to refine than light crude.
Carr said his government wants to take a new approach.
"I think that if you listen to what the prime minister has said about moving our resources sustainably, the importance of responding to the demands in other export markets, and not to solely rely on one major market," he said. "That is the sensible approach to take and nothing has changed."
Keystone XL no longer crucial for Canada's oil exports, says natural resources minister - Politics - CBC News