What would new pipelines for Alberta crude mean for Canada?
New paper quantifies massive benefits to GDP, job growth and government revenue of creating more pipeline capacity for Canadian oil
The current Keystone XL pipeline stalemate has been an impetus for discussion of what Canada could gain from oil market diversification. Yet the complete economic benefits of additional pipelines for Alberta crude have not been accurately measured to date.
A groundbreaking study released last week by The School of Public Policy is the first comprehensive analysis of what greater access to new and existing refining markets would mean for Canada. The authors calculate potential price differentials available to Canadian producers if pipelines existed to maximize the potential production capacity of the oil sands.
“With better access and new pipeline capacity, oil producers will see more efficient access to international markets which can add up to $131 billion to Canada’s GDP between 2016 and 2030,” the authors write. “This amounts to over $27 billion in federal, provincial and municipal tax receipts, along with an estimated 649,000 person-years of employment.”
Not surprisingly, Alberta, with its robust oil reserves, will be the principal beneficiary, but the authors stress that “most every single province and territory will realize fiscal and economic gains.”
“These are impressive figures,” concluded co-author Michal Moore. “The rewards of additional pipelines for all of Canada are too great to ignore. Pipelines must be a national priority.”