Canada's Environment Minister, Peter Kent, told the Financial Post in an interview from London that "[t]he ability of the oil and gas sector to absorb tough government controls on their greenhouse gas emissions depends on Canada getting a better price for its oil." The additional revenue would permit oil companies to invest in leading-edge technology to address GHG emissions and curtail pollution. "What we have to do, one way or another, is get rid of the US Discount," he said.
Crude is sold to the US at a price that fluctuates, but is substantially lower than global market price would dictate. The solution to this? Keystone XL Pipeline. The theory is that by putting a pipeline down to the Texas Coast, Alberta oil would have better market access reducing the discount. For now, the decision on Keystone rests south of the 49th, and delays are expected. Minister Kent and the Prime Minister are pleading the case for Keystone in New York next week.
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