FILE - In this June 12, 2019 file photo demonstrators walk to Andrew W. Bogue Federal Courthouse as they protest against the Keystone XL pipeline in Rapid City, S.D. (Adam Fondren/Rapid City Journal via AP, File)

U.S. analysts agree Canadian energy projects are harder to complete

Experts: Pipeline projects in Canada tend to cross more borders, Indigenous territories than in U.S.

The perception that Canada is a more difficult place to build major energy projects is accurate, according to U.S. analysts, although opposition to such projects is growing in both countries.

Speaking in the wake of a decision by Teck Resources Ltd. to cancel its $20.6-billion Frontier oilsands mine, they say geography is part of the problem as pipeline projects in Canada tend to cross more borders and Indigenous territories than typical projects in the U.S.

Adequate pipeline access from the Alberta oilsands to export markets was one of the issues Teck said it must solve in order to proceed to construction of the mine.

New York-based analyst Phil Skolnick of Eight Capital says pipelines to bring oil and gas from the burgeoning Permian region in northern Texas to the Gulf Coast, for instance, can be built entirely inside state borders.

Pipelines that cross several state borders, however, such as the Keystone XL pipeline between Alberta and the U.S. Midwest, have been delayed by opposition on the U.S. side of the border after easily winning approval on the Canadian side.

Jennifer Rowland, a senior analyst in St. Louis, Mo., for Edward Jones, says Indigenous and environmental opposition to the 1,930-kilometre Dakota Access pipeline resulted in delays in 2016 and 2017 but it was built after law enforcement agencies enforced its regulatory approvals. She says the reluctance of Canadian law agencies to provide similar enforcement for approved projects is a competitive disadvantage.

READ MORE: Teck CEO says Frontier withdrawal a result of tensions over climate, reconciliation

“We’re talking about some pretty long-haul pipe that touches a lot of areas, a lot of communities, a lot of different Indigenous groups and I think that’s where it starts to get really messy, really quickly,” she said.

“And that, I think, is part of the bigger challenge in Canada than in the U.S.”

The Canadian Press

Like us on Facebook and follow us on Twitter

Oilsands

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Okanagan College passes $126.8-million 2020-2021 budget — virtually

The board recognized circumstances associated with the COVID-19 pandemic will likely prompt changes

VIDEO: Community of Oliver salutes frontline medical staff

“Honk for the unsung heros. Thanks to each and every one of you”

Summerland’s April 1 snow measurements above normal

Measurements taken at Summerland Reservoir and Isintok Lake

Okanagan Skaha School Board does not anticipate closures

School district budget tight as a result of declining enrolment

Q&A: Interior Health CEO answers questions on COVID-19 response

Susan Brown, president and CEO of Interior Health, answers questions regarding COVID-19

‘We don’t need this right now’: B.C. man breaks up road rage incident

Two men were throwing punches on Tillicum Road in Saanich on Vancouver Island

Migrant worker advocates blame government, employers for West Kelowna COVID-19 outbreak

Migrant farm worker group calls on government for adequate health and safety requirements

Seeing double: 2 great blue herons caught by Vernon shutterbug

Image perfect reminder spring has sprung in the Okanagan

Effects of COVID-19 isolation on domestic violence a concern for Shuswap women’s shelter

Salmon Arm’s SAFE Society open, programs and services still running but funds, supplies needed

‘There can be no ambiguity’: Travellers brought home to B.C. must self-isolate

Health Minister Adrian Dix said the mandatory isolation must be abided by

COVID-19 has been impacting Canadian economy since January

But full effects of pandemic won’t be known for months

Doctors trained abroad want to join front lines of COVID-19 fight in Canada

B.C. is looking to allow internationally trained doctors to work under the supervision of attending physicians

Most Read