“The Potential Impact of Canada’s Trans Mountain Expansion on Oil-Exporting Middle Eastern Countries”
As the completion of Canada’s Trans Mountain Expansion pipeline draws near, one major oil-exporting Middle Eastern country may already be feeling the pressure. According to Rystad Energy analyst Susan Bell, the heavy crude produced in Alberta resembles Iraq’s Bashar Heavy crude in terms of yield and distillation profile. This similarity makes Canadian oil a viable substitute for Iraq’s crude, especially for western U.S. refineries looking for a more convenient option.
Opening Up New Markets
The Trans Mountain pipeline is not only poised to change the dynamics of oil imports in the western U.S., but it also promises to open up access to the Asian market via the Pacific. With a capacity to deliver 890,000 barrels of oil per day to Vancouver’s coast, the pipeline is expected to nearly triple Alberta’s exports and provide a lucrative opportunity for oil companies looking to tap into new markets.
Stability and Regulatory Environment
Apart from the economic benefits, nations may also prefer importing Canadian oil due to the country’s stability and stringent environmental regulations. Companies like MEG Energy have already shown interest by requisitioning 2.1 million barrels in advance of the pipeline’s official launch, signaling a potential shift towards Canadian oil in the global market.
Conclusion: A Changing Landscape in the Oil Industry
As the Trans Mountain Expansion project nears completion, the implications for oil-exporting countries, particularly in the Middle East, are becoming more apparent. The shift towards Canadian oil presents not only economic opportunities but also challenges for traditional exporters. With the pipeline expected to start commercial operation in May 2024, the global oil industry is on the brink of a significant transformation that will reshape trade dynamics and influence market strategies. It remains to be seen how countries will adapt to these changes and whether they will embrace or resist the growing influence of Canadian oil in the global market.
Reference
