FILE - In this June 12, 2019 file photo demonstrators walk to Andrew W. Bogue Federal Courthouse as they protest against the Keystone XL pipeline in Rapid City, S.D. (Adam Fondren/Rapid City Journal via AP, File)

U.S. analysts agree Canadian energy projects are harder to complete

Experts: Pipeline projects in Canada tend to cross more borders, Indigenous territories than in U.S.

The perception that Canada is a more difficult place to build major energy projects is accurate, according to U.S. analysts, although opposition to such projects is growing in both countries.

Speaking in the wake of a decision by Teck Resources Ltd. to cancel its $20.6-billion Frontier oilsands mine, they say geography is part of the problem as pipeline projects in Canada tend to cross more borders and Indigenous territories than typical projects in the U.S.

Adequate pipeline access from the Alberta oilsands to export markets was one of the issues Teck said it must solve in order to proceed to construction of the mine.

New York-based analyst Phil Skolnick of Eight Capital says pipelines to bring oil and gas from the burgeoning Permian region in northern Texas to the Gulf Coast, for instance, can be built entirely inside state borders.

Pipelines that cross several state borders, however, such as the Keystone XL pipeline between Alberta and the U.S. Midwest, have been delayed by opposition on the U.S. side of the border after easily winning approval on the Canadian side.

Jennifer Rowland, a senior analyst in St. Louis, Mo., for Edward Jones, says Indigenous and environmental opposition to the 1,930-kilometre Dakota Access pipeline resulted in delays in 2016 and 2017 but it was built after law enforcement agencies enforced its regulatory approvals. She says the reluctance of Canadian law agencies to provide similar enforcement for approved projects is a competitive disadvantage.

READ MORE: Teck CEO says Frontier withdrawal a result of tensions over climate, reconciliation

“We’re talking about some pretty long-haul pipe that touches a lot of areas, a lot of communities, a lot of different Indigenous groups and I think that’s where it starts to get really messy, really quickly,” she said.

“And that, I think, is part of the bigger challenge in Canada than in the U.S.”

The Canadian Press

Like us on Facebook and follow us on Twitter

Oilsands

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

LETTER: Former Summerland mayors speak out on solar project

Five former Summerland mayors sign name to short letter

Emergency crews conduct CPR on unresponsive person in Okanagan Lake

West Kelowna emergency crews are on scene at the shores of Jubilee Mobile Home Park

Summerland Museum reopens

Museum to open on July 15 with reduced operating hours

WFN eases COVID-19 restrictions for tenants and landlords

Westbank First Nations make changes as COVID-19 restrictions begin to slightly lift

Penticton photographer publishes book showcasing resilience of Okanagan people

Okanagan Strong showcases the bravery of many during crisis; from COVID-19, to floods, and fires

B.C. identifies 20 new COVID-19 cases, travellers specified in count

Pandemic total 3,028 cases, 51 people from outside Canada

Kelowna taxpayers could pay $90K for losses caused by cancelled Memorial Cup

$135,000 would be put aside for a potential bid for a future opportunity to host the tournament

Survey, hotline launched amid probe into racist blood-alcohol guessing game at B.C. hospital

Mary Ellen Turpel-Lafond has been appointed to lead an investigation by Health Minister Adrian Dix

Canadian policing organization calls for decriminalization of simple illicit drug possession

Canadian Association of Chiefs of Police want policing focus of opioid crisis to be replaced with a health one

Motorcycle rider seriously injured in collision with vehicle on Highway 97 west of Pritchard

Chase RCMP report that motorcycle was attempting to pass when crash occurred

Predator mutilated cats in Kelowna: BC SPCA

The BC SPCA confirmed a mutilated cat was killed by a predator

Filing deadline in RCMP sexual-harassment class-action extended due to COVID-19

Plaintiffs now have until January 2021 to submit claims for up to $222,000

Jamie Bacon pleads guilty to charge in Surrey Six case

The plea brings an end to a complex legal case that has spanned more than a decade

$500 fine for Vernon man caught near Coldstream playground

Richard Slobodian, 58, served one night in jail and ordered to pay for breaching probation

Most Read