Canada’s inadequate oil pipeline infrastructure has hindered its ability to export, costing the industry some $2.5 billion per month, according to a new study.
Deficiencies in Canada’s oil network mean that the country, although an important producer, “still has to import more than 40 percent of the oil it consumes,” the report by Nomura Bank said Wednesday.
“Canadian producers are selling their oil at a discount to international benchmark, while consumers are importing oil priced at Brent,” the report said, adding that Canada crude is “unable to reach demand or export terminal ports.”
The report also blamed problems in the North American oil market, including “increased production in the US, refining disruptions and an inadequate pipeline network.”
Pipeline problems cost Canada $2.5 bn a month: report
