Oil and gas sector cautious as deadline on Trans Mountain decision nears

Trudeau government expected to announce whether it will approve pipeline for second time on Tuesday

Pipes are seen at the Kinder Morgan Trans Mountain facility in Edmonton, Alta., Thursday, April 6, 2017. (THE CANADIAN PRESS/Jonathan Hayward)

Observers on the front lines of Western Canada’s oil and gas sector are looking forward to what’s widely expected to be approval of the Trans Mountain pipeline expansion on Tuesday while acknowledging the decision by Ottawa won’t solve all problems.

CEO Clayton Byrt of Pimee Well Servicing LP, a service rig company owned by six northern Alberta First Nations, says approval of the pipeline is a “big deal” because it will encourage investment by the oilsands producers he counts as customers.

He says more activity will support Pimee’s ability to retain its 140 employees — almost all Indigenous — and eventually grow the company to continue to offer good jobs to First Nations members.

The company counts Imperial Oil Ltd. and Cenovus Energy Inc. among its customers, both of whom have delayed building or completing steam-driven oilsands projects because of uncertainty about how they will get the oil to market.

READ MORE: Is Trans Mountain a pipeline to prosperity for Indigenous communities?

Analyst Samir Kayande, a director with RS Energy Group, says the expansion to triple capacity of the existing Trans Mountain pipeline will help with market access when it comes on stream but that likely won’t happen until 2022 and could be held up by more legal challenges.

He says the pipeline isn’t big enough to fix Western Canada’s oil transportation woes on its own, nor does it address the general downturn in energy investing in North America and the lower quality of Canada’s resources compared to premier U.S. oil and gas basins.

“Even though it’s positive and it’s important, the impact on the investment climate will probably be a little bit muted at least until you can actually start construction,” said Kayande.

“It really depends on what the next round of legal challenges looks like.”

The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Stettler hosts U-19 women’s softball teams in Western Canadian Championship

Stettler Storm will be amongst teams in championship

Local violinist returned home to receive a special honour

Angelina Gandolfo (Weber) received a Clearview Public Schools 2019 Award of Merit

Castor Rodeo bows for 42nd after successful 2019 event

This year featured a pair of competitors from Australia and a competitor from New Zealand

Castor resident meets award-winning namesake

Luella Kowalsky, who is a resident of Castor’s Paintearth Lodge, met ‘Miss Luella’ recently

Police investigate Castor break and enter

Performance Paint and Body Shop trailer broken into on July 5th

VIDEO: Reports say Lashana Lynch is the new 007

Daniel Craig will reprise his role as Bond one last time

RCMP investigating alleged ‘sexual misconduct’ by cyclist on BCIT campus

BCIT said they were reviewing video evidence of the incident

Graphic suicide scene edited out of ‘13 Reasons Why’ finale

Suicide prevention groups support the decision

High-speed rail link would run from Vancouver to Seattle in under 1 hour: study

Annual ridership is projected to exceed three million

Asylum figures show overall slower rate of irregular crossings into Canada

Between January and June 2019, a total of 6,707 asylum seekers crossed irregularly into Canada

Diversity a Canadian strength, Trudeau says of Trump tweets at congresswomen

Trudeau avoided using Trump’s name when he was asked about the president’s Twitter comments

Garneau ‘disappointed’ in airlines’ move against new passenger bill of rights

New rules codified compensation for lost luggage, overbooked flights

Canadian is detained in China on drug allegations: Chinese government

Detention of a Canadian in China comes as part a diplomatic dispute triggered by arrest of Huawei exec Meng Wanzhou

Too much time on social media can hurt teens’ mental health: study

Researchers conducted a four-year survey of more than 3,800 adolescents between Grades 7 and 11

Most Read