The potential cancelation of the Keystone XL pipeline may not be as devasting a hit to the energy sector as many currently believe.
That’s according to Tim Pickering, CIO of Auspice Capital, who spoke on Fort McMurray Matters on Tuesday to discuss the future of the project.
CBC News first reported incoming U.S. President Joe Biden planned to rescind the pipeline’s permit on his first day in office later this week.
Pickering says Keystone was more of an added benefit instead of a need as all the barrels would be landlocked.
“If we got full global access, tidewater access… the long-term benefit is far greater.”
For Pickering, Trans Mountain is far more important.
The already existing pipeline is being expanded to allow for more product to be sent to tidewaters on the west coast which will help the sector be more competitive on the global market.
He adds the U.S. will continue to be our number one customer even without Keystone.
“They want heavy crude from Canada, their refineries are built for it, they can’t get it from Venezuela anymore so Canada is really important in that regard.”
Losing Keystone will still have some downfalls.
Thousands of Albertans are currently employed and could lose their job if the project is stopped. Billions of dollars in taxpayer’s money which was invested by the province in the project could also be lost, however, the GoA plans to seek compensation if this happens.
Pickering also believes similar projects, like the ‘Alberta to Alaska’ railway, could meet the same result.
“Anything that’s not way down the path is at risk, I think again Trans Mountain is the one all eyes should be on.”
ICYMI: On this edition of Fort McMurray Matters, we get an update on Willow Square and we also chat with Tim Pickering, CIO of Auspice Capital, about Keystone and what 2021 will look like for the energy sector #ymm #rmwb https://t.co/Dk9S3ftxD3
— MIX 103.7 News (@Mix1037FMNews) January 19, 2021