An envoy to address to address the growing oil price differential won’t happen in Saskatchewan.
That’s from the province’s Minister of Trade.
“We don’t need to have a commission,” said Jeremy Harrison.
Last week, Alberta Premier Rachel Notley appointed three envoys to work on short term solutions to the growing oil price differential.
Recently, the price for Western Canadian Select heavy crude dropped below $14 a barrel. The price discount for WCS has been around the $40/barrel mark.
For Harrison, the reason as to why this is an issue is cut and dry: Simply, there’s a lack of pipeline capacity.
“We’ve seen from the Trudeau government an arbitrary political killing of the Northern Gateway project, a political killing of the Energy East project,” he said. “Both of which would have alleviated the deficiency we have in pipeline capacity right now.”
The Trans Mountain pipeline is another project Harrison cited, calling the feds response “panicky” in purchasing the project from Kinder Morgan for $4.5 billion.
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“We were hopeful that was going to turn out. It hasn’t thus far.”
For the Saskatchewan NDP, are there other ways this issue can be addressed/approached?
That’s a question the party’s leader Ryan Meili believes is worth asking.
“There’s a reasons why that particular oil has a competition challenge around with lighter, sweeter crude. There are challenges around the level of production.”
Meili noted the important thing to do is to have the talk with industry leaders on this matter, calling this matter an on-going preoccupation.
“It would be wise of this government to hold meeting with leaders on this file, absolutely.”