Ship Alberta Oil To Atlantic, Senator Says
Refineries in Atlantic Canada should get the opportunity to process cheaper oil from Alberta, says P.E.I. Senator Mike Duffy.
Duffy was responding to an application from Enbridge to the National Energy Board to reverse the flow in an existing pipeline to bring oil from Alberta to Ontario. A company spokesperson says that if the market conditions are right, Enbridge might apply to get the oil to Montreal.
Duffy would like to see that happen, so Atlantic refineries could have the oil shipped from Montreal to their facilities in Atlantic Canada.
"What damage is done by reversing the flow in an existing pipeline, giving Atlantic Canada the opportunity to share in Canada's wealth and have a secure supply of petroleum?" he asked.
"It seems to me that if we can have a made-in-Canada energy policy from coast to coast to coast, that's to the benefit of all Canadians."
Eastern Canada now relies on oil from international sources, such as Venezuela and the Middle East. The cost of this oil tends to be about $20 a barrel higher than western Canadian crude.
A coalition of environmental groups, Ontario landowners and a First Nations group are opposing Enbridge's request for oil to flow west to east into Ontario.
Public hearings are scheduled to start in May.
WHAT'S BEHIND THE PRICE OF GAS?
1. Crude Oil Prices
It starts with crude oil. Although Canada may produce more oil than it consumes, the country is at the mercy of global markets for the commodity. Increased Middle East instability, sparked by popular uprisings, has lead to concerns about supply. Better-than-expected economic growth, especially in developing nations such as China and India, has also increased demand. (AP Photo/Hasan Jamali)
2. Refining Oil into Gas
The next link in the supply chain is refining. In order to turn thick, black crude oil into useful products such as gasoline, diesel, heating oil and jet fuel, it must be sent through a mind-boggling array of pipes and tanks, heaters and condensers to sort the components of the substance from lightest to heaviest. This is a complex and costly process, and is paid for by what is known as the "crack spread," or refining margin. This represents the difference between prices fetched for the products produced, and the cost of crude oil inputs.. (AP File Photo)
3. Transportation to Retailers
Once the oil has been refined into gasoline, it must be transported to retail outlets across the country. This is accomplished through a network of 23 terminals - from St. John's to Nanaimo, B.C. -- forming the backbone of the distribution network. (AP Photo/Jessica Hill)
4. Retail Mark-Up
The retail mark-up averaged 7.6 cents per litre in April. This national average masks wide variation, from lows of 4.6 cents in Calgary up to highs of 25.8 cents in Whitehorse, according to Kent Marketing Services, an industry consulting group. (AP Photo/Orlin Wagner)
5.Taxes at the Pump
Emily Corbett of Mechanicville, N.Y., pump gas at a station in Mechanicville, on Wednesday, May 11, 2011. New York, Indiana, Illinois and New Hampshire are among the first states talking about temporarily suspending part or all of the state and local taxes that can add 14 cents to nearly 50 cents to a gallon of gas. (AP Photo/Mike Groll)