Enbridge is looking at expanding pipeline capacity out of Oklahoma to deal with expanded supply of light oil from the Bakken Play.
This will be an interesting test for the US regulatory system because if they throw up road blocks to this pipeline expansion, they will be hurting producers in Montana and North Dakota as well as Canada.
This proposal will also be an interesting test for environmental organizations what oppose any new energy development. So far, they have had a easy ride labeling Canadian exports as “dirty oil.” While they are running hard to tarnish enhanced oil and gas production techniques, they may run up against a strong backlash from the states of North Dakota and Montana if they attempt to continue to impede their access to high value markets.
One way or another, the price discount that Canadian producers are experiencing for their product has to be dealt with. As a staring point, the federal government should take all action possible to expedite the construction of oil and gas export pipelines to Pacific coast ports. This is one time they may want to dust of the “Not Withstanding” clause in the constitution to enable the timely deployment of critical national infrastructure.
