Official report (1).docx - To Arthur Clarke <...

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To: Arthur Clarke < [email protected] > From: Jasmine Chhabra, Mary Rose Jensen, Thi Minh Hieu Nguyen, Sophia Selenge < [email protected] > Subject: Pipelines of Canada Report Dear Mr. Clarke, Here is the report on the pipelines of Canada you have requested from the Research & Development Department at your company Clarke & Sons Investors for the Pipeline Investor Conference, April 8, 2019. As per request, we have highlighted the background, important data, advantages/disadvantages and stance on each party involved in the pipelines of Canada. The parties involved economically are the Canadian government and the oil industry; environmentally are first nations & aboriginals of Canada and environmental groups. Our report should provide enough information for you and other investors to make the decision on whether or not you would wish to invest in the pipelines of Canada. Economic The economic effect of the Pipelines of Canada involves the Canadian government and the oil industry. Emphasizing the background, important aspects and the stance on pipeline projects. Canadian Government Background Canada has developed its pipelines network for a long period of time. In 1982, one of the first oil pipelines in the world was built to carry crude in Southern Ontario, from Petrolia to Sarnia (Harrison, 2014). Now the underground pipelines system has increased vastly to 830,000 kilometers across Canada (Harrison, 2014). The construction of this oil network has raised many concerns for Canadian government on both economic and environmental perspectives. Government and the economy On the economic aspect, pipelines network will make a great contribution to our nation's prosperity thanks to exporting oil resources to global market. The Canadian Energy Pipeline Association (CEPA), reports that the Canadian oil and natural gas exports gain about more than 80 billion dollars annually, most of which were transported through underground pipeline networks (Harrison, 2014). It is predicted that the world oil demand will add up to 33 percent over the next 20 years, so the Alberta's oil resources would be the best to satisfy that need (Harrison, 2014). Building more underground pipelines would make the oil transportation more efficient thanks to the speed and safety provided. According to The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA), the rate of accident, injuries and fatality of transporting via pipelines from 2005 to 2009 is much lower than via railways or trucks (Furchtgott-Roth, 2014). In October 2013, a study published by analyst Trisha Curtis of the Energy Policy Research Foundation indicated that the lack of pipelines is responsible for the loss of federal and provincial government tax revenue (Furchtgott-Roth, 2014). However, since most oil crude only goes as far as Oklahoma, and an excess supply exists, companies have to bear between $20 and $30 less for every Canadian barrel. As a result, it costs the oil industry about $40 million every day in lost
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2 Research & Development Department Due April 8, 2019 Clarke & Sons Investors revenues (Harrison, 2014). Government has proposed some alternatives that the expansion of
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  • Fall '19
  • Pipeline transport, trans mountain pipeline

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