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This article is part of the Fall 2018 edition of the Journal of the Canadian Heavy Oil Association. The “four-headed monster,” as described by an industry executive, is still very much a threat. Canada’s heavy oil and oilsands industry continues to face significant headwinds as we approach 2019. We’ve crossed the tipping point on pipelines, with our export systems so full that records are being set both in the discount received by Canadian heavy crude and in crude by rail traffic. While the differential is expected to ease somewhat as refinery maintenance winds down in the U.S., it could be years until the underlying pipeline challenge is resolved. Husky Energy CEO Rob Peabody predicted in October that the light/heavy differential is likely to remain wide and volatile until 2021, following completion of Enbridge’s Line 3 Replacement Project and, hopefully, Keystone XL. The near- and long-term future of the industry is clouded by regulatory uncertainty, including the federal government’s proposed Bill C-69, which would overhaul the process for major project reviews. According to market analysts, it’s bad for business. According to Alberta Premier Rachel Notley, C-69 in its current form “hurts Albertans.” Despite the challenges the heavy oil and oilsands […]
