Page 5 - NorthAmOil Week 11 2022

NorthAmOil COMMENTARY NorthAmOil

we have essentially asked each other, those of us at or near capacity but we’re exploring options
that are oil and gas producers, to look at what- that may be taken to provide more energy to
ever we can do,” Wilkinson told the Canadian the US and Europe. That includes using export
Press. facilities on the Gulf Coast for crude and natural
The talks are underway ahead of a meeting gas,” Enbridge said.
of energy ministers from member countries of
the International Energy Agency (IEA) in Paris What next?
on March 23. Canada’s efforts to boost exports to Europe
“My expectation is, by the time I go to Paris, come after it already exported a record amount
we will have a pretty good view about what we of crude out of the US Gulf Coast at the end of
may be able to do,” Wilkinson was quoted as 2021. Most of this went to major Asian import-
saying. “I mean, we have constraints around ers India, China and South Korea, however. But
pipeline capacity, obviously, but the ability to Russia’s war in Ukraine is triggering changes
fully utilise that, at this point in time to help to in energy trade flows, so Canada may yet see
stabilise global energy markets, and to assist our exports to Europe hit a new high.
friends and allies in Europe is definitely some- Nonetheless, the gains the oil industry makes Canada’s efforts
thing that we are looking at.” from this could prove to be relatively short-
lived. Wilkinson told Reuters that further down to boost exports
Limited role the line in discussions with Europe was the to Europe come
Canada currently exports around 3.6mn barrels “transition from natural gas to hydrogen”. Sim-
per day (bpd), with 97% of these volumes going ilarly, he told the Canadian Press that he saw after it already
to the US, while only 3% is re-exported. Accord- partnering with Europe on renewable energy as
ing to the Canadian Press, Canadian Minister of a more realistic and more lucrative move in the exported a record
Environment Steven Guilbeault estimated this longer term.
week that the country might be able to increase “We are in this transitional period where we amount of crude
output by 200,000 bpd. Meanwhile, the Explor- need to address the immediate energy security out of the US Gulf
ers and Producers Association of Canada’s pres- crisis that [has] arisen because of Russia’s brutal
ident, Tristan Goodman, said twice that amount actions in Ukraine,” he said. “But I think every- Coast at the end
might be achievable, “if we’re lucky”. body understands that the world is and must
Europe, however, would require around 3mn turn toward a low-carbon future.” of 2021.
bpd of additional crude to fully replace what it Wilkinson went on to say that he expected
currently buys from Russia. Canada’s role, there- European oil demand to decline over time, with
fore, can be expected to be limited. the continent moving faster than most of the
Nonetheless, both the Canadian government world to adopt electric vehicles (EVs).
and the country’s oil industry are exploring the “So I’m not sure that additional oil pipelines
options available to them. would have been, nor would be, a long-term
“Both our liquids and natural gas systems are win,” he said.™

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