{"id":4483,"date":"2026-03-26T20:04:44","date_gmt":"2026-03-26T20:04:44","guid":{"rendered":"https:\/\/www.worldpumpnews.com\/?p=4483"},"modified":"2026-03-26T20:04:44","modified_gmt":"2026-03-26T20:04:44","slug":"price-surge-from-trans-mountain-expansion-highlights-need-for-new-pipelines-mei","status":"publish","type":"post","link":"https:\/\/www.worldpumpnews.com\/?p=4483","title":{"rendered":"Price surge from Trans Mountain expansion highlights need for new pipelines: MEI"},"content":{"rendered":"

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Canada\u2019s ability to sell oil in markets outside of the United States has paid off big time so far, underscoring the urgent need for more pipelines to coastal waters, says a report from public policy think tank MEI.<\/p>\n

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A separate study released Thursday, from climate policy non-profit Clean Prosperity, agrees the oilsands industry will reap big profits from a potential new pipeline to the West Coast \u2014 far offsetting an increase in the industrial carbon price.<\/p>\n

The MEI report said the average price-gap between light U.S. and heavy Alberta crude blends narrowed by 37.5 per cent between the 18-month lead-up to the Trans Mountain pipeline expansion\u2019s completion in 2024 and the 18 months that followed.<\/p>\n

That resulted in a US$16.7-billion boost to industry revenues between June 2024 and November 2025.<\/p>\n

\u201cThe reduction in the spread means that it is becoming possible to approach the full value of our resources, which helps Canadian firms, but also increases government revenues,\u201d MEI senior policy analyst Gabriel Gigu\u00e8re said in a news release.<\/p>\n

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Before the Trans Mountain expansion started up, non-U.S. Canadian oil exports made up only three per cent of the total, but that proportion grew to 14 per cent in the fourth quarter of 2025.<\/p>\n

\u201cThe global demand for Canadian energy is very real, and new infrastructure has already demonstrated its benefits,\u201d Gigu\u00e8re said.<\/p>\n

\u201cIt is urgent that governments remove the regulatory obstacles that obstruct the construction of new energy infrastructure.\u201d<\/p>\n

The reports come as the Alberta government prepares a regulatory application for a new oil pipeline to the northern British Columbia coast that would enable up to one million barrels of oilsands crude to be exported to Asia.<\/p>\n

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A sweeping energy accord signed between the Alberta and federal governments late last year set out conditions that would see such a project move ahead, though no private-sector firm has stepped forward to take the reins.<\/p>\n

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The memorandum of understanding includes a minimum industrial carbon price of $130 per tonne, up from $95. An agreement on how it will be implemented is to be reached by April 1. Premier Danielle Smith said Wednesday that officials from both governments are still hammering out the details.<\/p>\n

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Clean Prosperity said in its analysis that oilsands producers should be able to easily recoup the added carbon costs, because their product would be able to sell for far more if a new West Coast pipeline enabled more exports to Asia.<\/p>\n

\u201cClean Prosperity\u2019s modelling shows that the federal-Alberta grand bargain is not just a climate breakthrough, but can also deliver a massive economic tailwind,\u201d said Benjamin Dachis, Clean Prosperity\u2019s vice-president of research and outreach.<\/p>\n

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