Findings of report might be misleading

To the editor:

The findings of a report by Jeff Rubin of the Centre for International Governance Innovation are misleading.

Rubin’s argument misses the point regarding expanded export opportunities for Canadian oil. It’s the market that sets the price, but currently virtually all Canadian oil production, regardless of source, goes to the United States. In the absence of tidewater access, Canadian producers do not have the option to seek other markets or to compete globally for higher prices.

The Canadian Association of Petroleum Producers estimates that Canadian oil production will rise to 4.9 million barrels per day by 2030, however Canada’s present pipeline network has capacity to move about four million barrels per day — pointing to an urgent need to expand pipeline capacity.

Further, the report claims that international commitments to reduce global carbon emissions over the next three decades will also reduce the size of future oil markets. According to the International Energy Agency, combined demand for oil in China and India is expected to increase by more than 10.8 million barrels per day by 2040.

In the absence of responsibly produced Canadian oil, these countries will buy oil from other suppliers who have little or no environmental regulation.

Ben Brunnen

Vice president, oil sands fiscal and economic policy Canadian Association of Petroleum Producers Calgary