Oil is one of the most valuable natural resources in modern times. Although planet Earth’s share of fossil fuels will inevitably run dry, there is still a major current need for oil and its derivatives. Without oil, after all, the vast majority of motor vehicles around the globe wouldn’t work.
The majority of the world’s oil currently comes from the Middle East. In recent years, however, Canada has supplied an increasing amount of the global supply of oil, most of which ends up remaining within North America.
Given that the utilization of Canada’s share of oil is a relatively new thing, the country doesn’t have a well-established infrastructure of pipelines to transfer oil from where it’s being mined to refineries across the country. The construction of such pipelines has been nothing short of controversial.
One of the most recent developments in the field of Canada’s oil pipelines related to the Trans Mountain pipeline, which runs from Edmonton, located about 500 miles north of the United States, down to Burnaby, just a few dozen miles north of Washington. The Trans Mountain pipeline currently spans a distance of roughly 715 miles, throughout which some 300,000 barrels of crude oil are transferred.
Just yesterday, on Tuesday, June 18, 2019, Canadian Prime Minister Justin Trudeau announced that the country had approved the expansion of the Trans Mountain pipeline, which would beef up the transport of crude oil from Edmonton to Burnaby from its current rate of roughly 300,000 barrels per day to just short of 900,000 barrels per day.
Right now, just five oil tankers cruise the Pacific coast of Canada every month. However, after the expansion of the Trans Mountain pipeline is fully implemented, roughly 34 oil tankers would traverse the Canadian Pacific coast on a monthly basis.
According to Prime Minister Trudeau, Canadians would end up paying less for gasoline, diesel, and other derivatives of crude oil as a result of the expansion of the Trans Mountain pipeline. Further, the Canadian market wouldn’t have to rely as much as it currently does on the United States to haul in oil and its derivatives.
The Trans Mountain pipeline expansion project could begin as early as late 2019. In total, the project will cost roughly $5.5 billion.