Discussions surrounding the need for new pipelines to transport Canada's oil to market have been a dominant economic, environmental and political issue for the past several years. Canada's overwhelming reliance on the United States as a customer, the U.S.'s growing energy self-sufficiency, and limited pipeline infrastructure have placed a low ceiling on the prices Canadians are able to secure for our energy exports.
We're producing so much oil sands crude that we've overwhelmed cross-border pipeline capacity. Now the industry is stuck in a Catch-22. Profit margins have dropped dramatically. To reassure investors, bitumen miners talk about dramatically expanding production. But the more we produce, the more we exacerbate the supply glut.
By the end of this month the federal pipeline regulator, the National Energy Board (NEB), is expected to approve Enbridge's proposal for its 38-year old Line 9 oil pipeline in Ontario and Quebec, which would carry shale oil -- known for its propensity to explode as it did in North Dakota. With that in mind, the province of Ontario must hold its ground on Line 9 and ensure its demands for a safer pipeline are met.
Yet another train derailment involving petroleum products has re-invigorated the debate over how we transport oil in Canada. Reflexive opposition to pipelines flies in the face of the data, which shows that pipelines are safer modes of transport than railways or roadways. Environmentalists engaging in anti-pipeline crusades risk causing more harm than good as their pipeline-stalling actions divert oil transport to rail and road that would otherwise be transported more safely by pipeline.