for Pipeline Infrastructure
Already struggling with a lack of pipeline capacity, Canada’s oil industry hit yet another setback with the recent announcement from Enbridge of delays to its Line 3 replacement project.
Intractable infrastructure problems caused Canada to miss out on the high prices that characterized much of 2018. A majority of Canadians now believe the lack of pipeline capacity has become a crisis as current supply lines are tapped out, storage facilities are at capacity and Alberta has instituted a production cut.
With the Permian possibly falling short of expectations, the U.S. shale boom may not be the panacea to keep prices relatively low at a time OPEC is restraining supply and geopolitical risks threaten more supply disruptions.
Canada's oil market is dealing with transportation constraints while heavy crude producers such as Colombia and Venezuela are seeing output declines and OPEC producers are cutting production.
Russia has the means and determination to hold onto its gas market in Europe, but in doing so, will be forced to give up much of its leverage over pricing and the way contracts are written.