Capacity crunch
Canada’s oil sands need new pipelines to new markets
A build-up of oil-sands production without sufficient pipeline capacity to take all the new oil to consumers threatens the long-term viability of the developments, believes Alberta’s government. The province’s premier, Alison Redford, summed up the problem in a catch-phrase called the “bitumen bubble”, which has caught on in a general public concerned for the future viability of oil-sands exports. Her theory, shared by some analysts, is that rising output from the oil sands will by 2016 eclipse the pipeline capacity that links the projects with refiners. This would drive down the price of Canada’s oil, which would be heavily discounted against higher quality or more accessible oil closer to

Also in this section
24 July 2025
The reaction to proposed sanctions on Russian oil buyers has been muted, suggesting trader fatigue with Trump’s frequent bold and erratic threats
24 July 2025
Trump energy policies and changing consumer trends to upend oil supply and demand
24 July 2025
Despite significant crude projections over the next five years, Latin America’s largest economy could be forced to start importing unless action is taken
23 July 2025
The country’s energy minister explains in an exclusive interview how the country is taking a pragmatic and far-sighted approach to energy security and why he has great confidence in its oil sector