By Kenneth P. Green and Taylor Jackson. Kenneth P. Green is senior director and Taylor Jackson is a senior policy analyst in natural resource studies at The Fraser Institute.
"On Tuesday, Prime Minister Justin Trudeau announced
that the government had approved both the Trans Mountain pipeline
expansion to British Columbia’s coast and Enbridge’s Line 3 replacement.
The eventual construction of these pipelines will allow greater
quantities of Canadian oil to flow westward to more lucrative global and
Asian markets, as well as southward into the U.S. market.
Together, these two expansions will add an additional 960,000 barrels
per day of capacity to Canada’s pipeline system. This is a positive
development, despite the government’s rejection on Tuesday of the
Northern Gateway pipeline and its imposition of a ban on oil tankers off
B.C.’s north coast, which is not justified by the evidence on tanker safety.
Growing pipeline capacity is critical to helping unlock the full
value of Canada’s resources. Canada’s current network of pipelines has
the capacity
to transport four million barrels of oil a day. With a current supply
of roughly 3.9 million barrels per day, Canada’s pipelines are nearly at
capacity, and any additional supply in the absence of new pipelines
would require alternative transportation methods such as rail, truck or
boat.
Oil production from Western Canada will grow by a projected 1.5 million barrels
a day by 2030, according to the Canadian Association of Petroleum
Producers, so not constructing additional pipelines could have proved costly.
Moreover, it’s vitally important that any economic gains from
Canadian resources are realized in the safest possible way, and
Tuesday’s announcement was also a victory for safety.
Research in Canada and the United States has found
that pipelines are 4.5 times less likely to experience an occurrence
(accidents or incidents) when transporting oil and gas than the
alternative mode of transportation — rail.
And consider this: according to data on pipeline safety from Natural
Resources Canada and the Transportation Safety Board, in recent years,
more than 99 per cent of crude oil and petroleum products transported by
pipelines arrived at their final destination. And 73 per cent of
pipeline occurrences result in spills of less than one
cubic metre, while 16 per cent of occurrences result in no spill
whatsoever.
Even when spills occur, the vast majority of pipeline accidents and
incidents — more than 80 per cent — don’t take place in the actual line
pipe. Rather, they happen in facilities that are more likely to have
secondary containment mechanisms and procedures.
Perhaps the most telling statistic regarding pipeline safety is that
99 per cent of pipeline occurrences in Canada from 2003 to 2013 didn’t
damage the environment.
Research from the U.S. also finds that pipelines are the safest mode
of oil transportation in terms of the risk to humans. One study found
that transporting oil by rail or truck was associated with higher rates
of fatalities and hospitalizations compared to pipelines.
If Canada is to fully reap the economic benefits of exporting oil to
areas of the world where demand is expected to grow, pipelines will be
necessary. However, pipelines will not only allow Canadians to reap the
economic benefits of their resources, they will also help ensure that we
transport oil in the safest and most environmentally friendly manner
possible."
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