Pembina Cites 'Energy Flywheel' as Western Canada Oil Production Accelerates
What happened
Pembina Pipeline Corp. stated that oil production in Western Canada is expected to grow faster than previous projections, describing the situation as an 'energy flywheel'. The company's CEO noted that expanding market access and infrastructure investment can reinforce energy demand. Separately, Enbridge sanctioned CNOOC's expansion in the region.
From calgaryherald.com
Why it matters
The reports suggest that increased pipeline space allows oilsands producers to pump more bitumen, which in turn increases the need for associated gas processing and transport. This cycle of infrastructure growth and demand is expected to reinforce the energy sector in the region.
From calgaryherald.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- AlbertaSpeculative
Alberta could see increased infrastructure investment to support the accelerated oil production
- PembinaSpeculative
Pembina might see increased revenue from expanding market access for hydrocarbons
- Energy TransferSpeculative
Energy Transfer might benefit from increased regional oil production and infrastructure investment
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The entities involved
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Pembina
rural municipality in Manitoba, Canada
Nothing else this week.
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Alberta
province of Canada
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Enbridge
Canadian energy transportation company
- Paul Harris discusses market volatility while Brookfield Asset Management highlights its ability to finance assets cheaply, supporting Enbridge's infrastructure outlook.
- Enbridge and associated companies are strengthening crude oil transport capacity through pipeline acquisitions and connections in the Permian and Powder River basins.
Related events
- Enbridge is operating a pipeline delivering crude oil from Alberta into the Midwest.
- Oil production in Alberta is reliant on the Trans Mountain pipeline, which requires access through British Columbia to reach the market in Burnaby.
- Alberta's heavy sour crudes are being processed by US refiners, while lack of Canadian refineries forces fuel imports.
- The government announced a key federal incentive package to encourage the development of an oil pipeline originating in Alberta and destined for the coast of British Columbia.
- Federal government and Alberta split ownership of the pipeline project, while Mark Carney estimated project benefits.