Dear Editor:
Alberta believes their present economic difficulties are due in large part to the delay of the Trans Mountain expansion and the inability to access Asian markets.
This is clearly not the problem since the 590,000-barrels-per-day TMX was not expected to be in service until 2020. Even if it was in operation it would transport only 400,000 bpd of raw bitumen, the balance of TMX being taken up by diluents.
Over the past six years, Alberta’s production of raw bitumen has increased by nearly 900,000 bpd even though there were no pipelines to transport it. Over the same period, United States oil production has increased by almost four million bpd and has caused significant congestion in pipelines to U.S. hubs.
The most worrisome aspect of Alberta’s current economic problem is the $50 oil price. Industry experts have indicated that new oil sands projects will need a $75 to $90 oil price to break even. The TMX will not solve that problem.
Doug Taylor
North Vancouver
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