Price discount gap surges to half-decade high.
Canada’s lack of pipeline capacity – caused in large part by Justin Trudeau’s decision to cancel the Energy East pipeline by making it basically impossible for the company to go through with it and his cancellation of the Northern Gateway pipeline – is having a severely damaging impact on our country.
And it weakens our nation in more ways than one:
While cancelled pipelines have a cost in terms of lost jobs and lost future profit, they also cost our entire country by weakening the price of current Canadian oil.
That’s because the lack of pipeline capacity leaves Canada more and more reliant on the US as our main customer. That reliance puts us in a situation where the US knows we have to sell to them, giving them leverage to get the oil for a lower price.
It also means there is more and more product on the market, while the ability to get that product to customers is simply not there. Unsurprisingly, that leads to a lower price for Canadian oil.
That’s the Price Discount that is costing Canada billions, the gap between what our oil sells for and what other countries are selling their oil for.
And now, that price discount gap is bigger than at anytime in the past decade.
Western Canada Select oil is now trading at $38.29 per barrel as of Tuesday. Compare that to West Texas Intermediate, which is trading at about $70.
It’s a gap of over $31, the worst it’s been since 2013. And while the previous Conservative government tried to close that gap by expanding the number of pipelines in our country, Trudeau moved things in the opposite direction, pandering to the radical left and making it nearly impossible to get pipeline projects done.
This makes Canada poorer, weakens our national sovereignty, and gives foreign nations more leverage over us. And despite what should be a clear lesson that we can’t rely on countries like Saudi Arabia for oil, the Trudeau Liberals only seem to be doubling down on their disloyal and disastrous energy policies.
Photo – YouTube