Oil glut pinch may trump pipeline opposition in Canada

Significance

Meanwhile, the National Energy Board (NEB) is preparing final approval of two large pipeline projects -- Energy East and Trans Mountain -- to carry Alberta and Saskatchewan crude to global markets. New approval metrics and a sustained campaign of domestic opposition from environmentalists, indigenous groups and municipalities along the pipeline routes render their final approval uncertain.

Impacts

• Memories of poor returns from CNOOC's takeover of Nexen will dissuade Chinese oil sands investment.
• Pipeline approval would hinder Canada's ability to follow through on emission reduction pledges.
• Federal climate policy reform hinges on cooperation from the oil-producing provinces.