Canada’s Northern Gateway Pipeline
An article by Edward Welsch in the Wall Street Journal today today talks about upcoming

hearings regarding Enbridge’s Northern Gateway pipeline, which would bring oil from Alberta to Kitimat on the British Columbia coast. As I discussed in an earlier blog post, Canada views this pipeline as an alternative to the Keystone XL pipeline, which would move oil to refineries on the U.S. Gulf Coast. Legally, the Obama administration must make a decision on this Keystone XL pipeline by the end of February. Because production from the Oil Sands is increasing so rapidly, Canada badly needs to find an additional means to bring petroleum to market. From the perspective of the Canadian government, therefore, the Northern Gateway pipeline allows it to hedge its bets, by allowing to sell oil to the Asian market, in particular China. Even if President Obama’s administration approves the Keystone XL, the Canadian government badly wants this other pipeline to the Pacific to increase its market options. …