Alberta’s proposed million barrel-per-day pipeline to British Columbia’s coast cannot secure financing from the private sector because of Canada’s existing regulatory framework, says Cenovus Energy CEO Jon McKenzie.
The country’s industrial carbon pricing system makes Canadian oil uncompetitive and hampers the production growth needed or the proposed pipeline, McKenzie said at the Global Energy Show in Calgary this week.
Existing regulations render the pipeline “unfinanceable” for the private sector, added McKenzie, who leads one of the largest oil sands firms in the country.
Prime Minister Mark Carney and Alberta Premier Danielle Smith finalized an agreement in May that outlines a timeline and regulatory pathway for the proposed West Coast oil pipeline, which they say will transport millions of barrels of oil from the oil sands to Asia….