How Gateway pipeline will raise the price of crude oil

Authority is doing pros and cons analysis about the construction of Northern Gateway pipeline, and Mr. McGown, President of Alberta Labor Federation, is opposing the whole idea.

http://www.cbc.ca/asithappens/episode/2012/09/04/the‐tuesday‐edition‐45/

For one thing, McGown indicates in the long run, more jobs will be killed than it will create under this Gateway pipeline project; for another, he explains crude oil price will increase because of this project so that Canadian refineries will have to bear higher costs to produce:

By the construction of this pipeline, Canadian can connect better with Asian economies, where industries are willing to pay more for crude oil because of relatively large demand. This access to “Asian Premium” will finally lead to an increase in crude oil price here in Canada, which means not only Canadian customers, but also Canadian refineries, will have to pay considerably more.

Leave a Reply