The need for diversifying markets has never been clearer
Sep 01, 2011
Some reports today call into question the “need” for the Northern Gateway Project. What these reports fail to address is that any additional pipeline capacity recently brought onto the marketplace transports Canadian crude only to the U.S. The necessity to diversify markets and respond to growing Pacific Rim demand for Canadian oil has never been clearer.
Currently, Canada relies on one market for the export of Canadian crude oil (over 99% of Canadian crude oil exports go to the U.S.). Market diversification will mitigate the risks associated with having a single customer and it will ensure competitive pricing for Canadian oil.
Access to Asian markets will boost oil prices for all Canadian producers, a total of $28 billion in the first 10 years alone. Enbridge has a number of partners who are helping to fund the regulatory process for the Northern Gateway project. These are companies that recognize and support the need for pipeline infrastructure to access new markets along the Pacific Rim where demand for oil is undeniable.
While the U.S. will remain Canada’s most important oil trading partner, demand is declining in the United States and trade related actions are occurring at the federal and state levels that may limit Canada’s access to that market.
In addition to the clear need for the project and for diversified markets for Canada’s most important export, the Northern Gateway Project represents tremendous benefits not just to industry, but to communities in which it would operate, the provinces and to Canada as a whole.
At Enbridge we’ve worked hard to ensure that, should the project receive regulatory approval, it will create a lasting legacy of local investment, tax revenue, and jobs.
- 62,700 person-years during construction, and 1,150 long-term jobs created
- $270 billion increase in Canadian Gross Domestic Product over 30 years
- $4.3 billion of total labour-related income during construction
- $68 million/year in labour-related income during operations
- $2.6 billion in total tax revenue for local, provincial and federal governments
Northern Gateway will help Canada take its rightful place on the stage as a reliable, ethical energy superpower opening new markets, creating new jobs, and prosperity for generations of Canadians. Our energy reserves are potentially a tremendous strategic advantage for Canada, but only if we choose to develop and make them available to the rest of the world.
