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CANADA MAJOR CHANGES IN OIL AND GAS SECTOR TRUMP Didn’t See This Coming: CANADA to Divert Oil and Gas West, Not South: Bluff or Backlash? PLAY YOUTUBE VIDEO Original article: https://www.youtube.com/watch?v=5h0fzFA32OM Peter Burgess COMMENTARY Peter Burgess
TRUMP Didn’t See This Coming: CANADA to Divert Oil and Gas West, Not South: Bluff or Backlash? Fastepo 231K subscribers Jun 3, 2025 No description has been added to this video. How this content was made Auto-dubbed Audio tracks for some languages were automatically generated. Learn more Transcript 0:02 in the wake of President Donald Trump's re-election in November 2024 Canada has undergone a marked shift in its economic and diplomatic posture toward the United States the reintroduction of aggressive US trade policies most notably a 25% tariff on a broad range of Canadian imports along with a 10% tariff on energy exports has sparked concern across Canada's political and business communities the strain was compounded by Trump's controversial rhetoric suggesting Canada could one day become the 51st state a statement widely seen as inflammatory and disrespectful of Canadian sovereignty since then Canada has expanded its exports to countries beyond the United States but one sector that remains deeply tied to the US market is crude oil however Canada has now begun to diversify its oil exports away from the US according to Canadian government meeting on June 2nd before diving into this emerging 1:00 development let's first explore how oil trade between Canada and the United States typically works as of early June 2025 Western Canadian Select Canada's benchmark heavy crude is trading at approximately $52.24 per barrel while West Texas Intermediate is around $60.79 per barrel this results in a price differential of about $8555 per barrel this price differential arises due to factors such as the heavier quality of WCS and transportation constraints the United States capitalizes on this discount by importing Canadian oil at lower prices and in some cases reexporting it at market rates this practice has been estimated to yield the US an annual windfall of approximately $19 billion canada's oil export infrastructure is heavily oriented towards the US market canada's oil exports to the United States averaging 4.3 million barrels per 2:02 day by mid 2024 accounting for roughly 60% of all US crude imports and up from 3.8 million barrels per day in 2023 primarily shipped via pipeline networks such as NBridg's mainline and the Trans Mountain system in 2023 97% of Canada's crude oil exports around 3.8 million barrels per day were delivered to US refineries valued at approximately $130 billion efforts to diversify export destinations have faced numerous obstacles projects like the Energy East and Northern Gateway pipelines which aim to provide access to eastern and western tidewater ports respectively were cancelled due to regulatory challenges environmental concerns and opposition from indigenous communities the recent completion of the Trans Mountain expansion project in May 2024 has increased capacity to Canada's Pacific coast allowing for greater access to Asian markets 3:01 the TMX tripled the pipeline's capacity from 300,000 to 890,000 barrels per day however the TMX's capacity is limited and further expansion faces similar hurdles that plagued previous projects in addition to oil Canada primarily exports its natural gas to the United States natural gas sent by pipeline from Canada averaged 5.2 billion cubic feet per day to the US in 2023 100% of Canada's natural gas exports rising to 5.4 billion cubic feet per day in the first half of 2024 largely flowing into the western and mid-continent regions liqufied natural gas or LNG exports from Canada to the United States are still in their early stages tilbury LNG has exported small volumes about 4,000 of a billion cubic feet per day meanwhile LNG Canada began its cool down in March 2025 and plans to 4:00 ship its first cargo by mid 2025 with a capacity of 14 million tons perom this will gradually reduce pipeline natural gas volumes to the United States once operational natural gas from Alberta is delivered to British Columbia and then south via the BC Washington interconnect which has a capacity of approximately 1.9 billion cubic feet per day into the Pacific Northwest canada is now actively promoting new pipeline projects and infrastructure development to enable oil and gas exports to markets beyond the United States let's turn to the recent announcement made by the Canadian government on June 2nd Prime Minister Mark Carney convened a meeting in Saskatoon with the premers of Canada's provinces the central goal was to explore ways to accelerate the approval process for major infrastructure and resource projects particularly in the energy and mining sectors in order to reduce Canada's heavy reliance on the United States as an export market 5:02 carney opened by emphasizing that under current norms obtaining federal approval for large-scale mining or energy developments could take up to a decade he proposed a framework that would cut that timeline to no more than 2 years by designating select projects as being of national interest the point is to build the certainty the stability and the ambition that builders need to catalyze enormous investment investment to make Canada into an energy superpower he said in his closing remarks reiterating his belief that clearer faster decision-making would stimulate GDP growth and help Canada Trump proof its economy amid potential US trade pressures when asked to name potential candidates for fasttracking Carney cited several initiatives across the country grab Bay Road and Port in Nunvoot a proposed corridor that would connect southern Canada to the Arctic Ocean opening routes for mineral exports the Ring of Fire in Ontario a vast 6:01 chromite and nickel mining district in northern Ontario whose development has been stalled by regulatory hurdles and infrastructure gaps the Pathways Alliance in Alberta a consortium of oil sands producers planning a $20 billion carbon capture and storage network to reduce greenhouse gas emissions from bumen extraction and new pipelines to Tidewater reiterating support for an oil pipeline to get to Tidewater acknowledging that at present Canada has only one such conduit the Trans Mountain which carries up to 900,000 barrels per day to the Pacific alberta Premier Danielle Smith whose province produces roughly 70% of Canada's oil presented what she termed a grand bargain ideally a privately financed line carrying 1 million barrels of crude per day to northwestern British Columbia which she estimated could generate $20 billion in annual revenues in exchange Alberta's oil sands companies would commit 10 to20 billion 7:01 toward technologies that either capture or offset carbon dioxide emissions supporting projects like the Pathways Alliance i'm encouraged by the immediate change of tone that we've seen from recent months Smith said after the meeting when we hear the prime minister talking about being an energy superpower we haven't heard that language for some time carney responded positively to Smith's outline i agree with her he said in reference to the grand bargain while stressing the importance of ensuring any new pipeline transported decarbonized barrels of oil within the broader context of national interest ontario Premier Doug Ford characterized the meeting as the best in a decade applauding Carney's push for national scale projects however he acknowledged that no definitive commitments had been made nothing was carved in stone at this meeting Ford quipped likening Carney's departing briefcase of proposals to a Santa Claus sled loaded with items for review over the summer 8:01 bc Deputy Premier Nikki Chararma reiterated her province's long-standing opposition to any new bumen pipeline through British Columbia noting that there is no proponent currently for such a project and emphasizing that the government's focus should remain on shovelready initiatives we have differences of opinion with Alberta on whether a new pipeline is needed she said underlining that BC's priorities include renewable energy transmission and critical minerals infrastructure manitoba Premier Wob Cano suggested that over time a route to Hudson Bay might become the most tenable course toward hitting international tide waters despite the fact that the port at Churchill is icebound for much of the year he emphasized that such a corridor would require significant private sector investment and problem solving and creativity to become 8:53 viable the premers of New Brunswick and 8:56 Prince Edward Island underscored the need for improved natural gas and 9:00 electricity interconnectors with the rest of Canada stressing that reducing internal trade barriers would help stabilize energy prices in the Maritimes before we delve into the details of this news item may we ask just one thing click the like button it signals to the algorithm that this conversation matters and leave a comment to sustain the debate whether you agree disagree or have another view entirely if you have not yet done so please subscribe and activate notifications to stay updated thanks for being part of this now let's keep going several indigenous leaders and advocacy groups warned that fast-tracking approvals could undermine their right to meaningful consultation potentially leading to legal challenges an Assembly of First Nations spokesperson emphasized 'Any attempt to curtail our input on projects that traverse our traditional territories will be met with resistance.' Carney acknowledged these concerns noting that respecting indigenous rights is non-negotiable and pledged that any 10:01 national interest designation would still require robust consultation processes environmental organizations were similarly cautious a representative from Environmental Defense Canada stated 'We cannot abandon our climate targets in the process.' While reducing Canada's dependence on the US market is understandable the representative urged Carney to tie approvals explicitly to verifiable emissions reductions carney responded by pointing to the Pathways Alliance as a model saying 'We need to decarbonize oil production so that any new exports are aligned with Canada's climate commitments.' Beyond resource corridors premers discussed breaking down interprovincial trade barriers carney stated 'Scrapping internal trade obstacles is as important as opening new external markets arguing that streamlined trade among provinces could spur economic diversification and job creation.' Ontario's Doug Ford added 'We 11:00 need to ensure that goods and energy can move coast to coast without provincial roadblocks.' While Quebec's LGO stressed the importance of bilingual regulatory alignment Carney committed to a follow-up framework by late summer drafting criteria for national interest designations by mid July Ottawa will circulate guidelines outlining which projects qualify establishing a rapid review office to be operational by early August tasked with coordinating federal provincial and indigenous reviews within a 24-month window provincial submission deadlines each province must nominate up to three projects by July 15th territorial leaders have the same deadline for northern initiatives interim check-in carney plans to reconvene in late September in Ottawa to assess progress on guidelines and project nominations the meeting came in the wake of US President Donald Trump's announcement of doubled steel tariffs to 50% which has 12:00 injected urgency into Carney's drive to diversify export channels 'we cannot allow external shocks to dictate Canadian prosperity,' Carney said in a reference to looming US trade barriers 'what's next?' Mark Carney has indicated that he is open to the idea of constructing a fresh pipeline to transport additional Canadian oil overseas provided it is accompanied by substantial green investments aimed at cutting the sector's environmental impact speaking after meeting with provincial leaders on Monday the prime minister asserted that it is absolutely in our interest to decarbonize Canada's oil industry and explore a new route for crude exports that bypasses reliance on the US which already imports roughly 4 million barrels per day from its neighbor to the north he noted there was consensus around the table for developing both western and northern trade corridors to facilitate resource exports including support for an oil pipeline to get to 13:00 Tidewater at present Canada has only one pipeline Trans Mountain that can move oil to ocean tankers that project was recently expanded to handle about 900,000 barrels per day however constructing another conduit faces obstacles british Columbia's government has differences of opinion with Alberta regarding the necessity of a new pipeline through its territory according to BC Deputy Premier Nikki Chararma moreover any new route would likely cross lands governed by indigenous First Nations some of whom might resist the proposal potentially leading to legal challenges all 13 provincial and territorial premers submitted proposals for projects ranging from power lines to mines and ports that they hope will be designated as having national significance making them eligible for fast-tracked approval under a process Carney has promised this meeting marked an initial step toward fulfilling Carney's pledge to reduce Canada's heavy dependence on the US market by strengthening the 14:01 domestic economy and cultivating new trading partners while Carney emphasized that Canada still seeks to ease trade frictions with US President Donald Trump he stressed the need to eliminate internal trade barriers and pursue large-scale national infrastructure projects in order to take matters very much into our own hands to understand why Canada cannot export larger volumes of its crude oil overseas we need to examine the existing pipeline infrastructure and its current capacity canada's primary coast to tidewater oil conduit is the Trans Mountain pipeline which stretches roughly 1,150 km from the Edmonton tank farm in Strathona County Alberta to the Westridge Marine Terminal in Burnaby British Columbia just outside Vancouver originally commissioned in 1953 as a single product line carrying crude oil Trans Mountain evolved over the decades to accommodate refined products as well by the mid 1980s it 15:01 regularly transported gasoline diesel and jet fuel from Edmonton to Cam Loops and by 1993 it extended its multi-product service all the way to Vancouver over time ownership shifted from Kinder Morgan to the Canadian government in 2018 and since 2022 it has been managed by Trans Mountain Corporation a federallyowned Crown Corporation as Canada sought to diversify its export markets beyond the United States the Trans Mountain expansion project was conceived to nearly triple the pipeline's capacity in 2019 the federal cabinet greenlighted a plan to build about 987 km of new 36-in pipe alongside the existing right ofway between Hinton Alberta and Burnaby this expansion included the construction of new pump stations such as the Wolf facility near Nighton Junction Alberta and the Chapel Station near Pyramid Creek Falls in British Columbia as well as significant upgrades to the Westridge 16:00 terminal to accommodate Aphroax and Panamax class tankers when the expanded line officially entered service in June 2024 its throughput soared from the original capacity of about 300,000 barrels per day to 890,000 barrels per day with actual volumes in mid 2025 averaging between 750,000 and 800,000 barrels per day as Canadian crude found new buyers across the Asia-Pacific region the economic stakes for Trans Mountain are substantial prior to the expansion more than 95% of Canadian oil exports flowed south to US markets by providing a direct link to Pacific Tidewater the pipeline opens Asiabound opportunities in countries such as Japan China South Korea Taiwan and India economists estimate that the increased volumes could generate between 3 billion and 4 billion Canadian dollars in annual toll revenue depending on shipper contracts and global commodity prices 17:01 furthermore having become fully crown owned after a $4.5 billion Canadian dollar purchase in 2018 Trans Mountain now contributes its earnings toward the national treasury helping to pay down federal debt over time despite these economic benefits Trans Mountain's route traverses rugged mountain terrain sensitive coastal ecosystems and waterways such as the Frasier River Delta areas known for both rich biodiversity and extensive aquaculture activity to address these environmental risks Trans Mountain Corporation maintains a federallymandated spill response plan that coordinates closely with agencies like Fisheries and Oceans Canada and the Canadian Coast Guard at the same time more than 130 indigenous groups participate in the project through contracts and benefit sharing agreements providing services ranging from environmental monitoring to construction support these arrangements aim to ensure that indigenous communities share in the 18:00 economic gains and have a voice in safeguarding their traditional territories in addition to Trans Mountain Canada's oil export network relies heavily on the Nbridge Canadian mainline which runs predominantly west to east across the prairie provinces in Ontario then connects to US refineries in the Midwest originating at the Hardesty Terminal in Alberta the main line carries up to three million barrels per day of crude and natural gas liquids to destinations such as Brandon Manitoba Sarnia Ontario and Montreal's oil terminal although it does not directly reach Tidewater this corridor remains vital for moving Western Canadian oil to eastern Canadian refineries and onward into American markets incremental upgrades such as the replacement of line 3 and the Alberta Clipper also known as line 67 have increased its capacity from about 2.1 million barrels per day in 2010 to nearly 3 million by 2020 canada is one of the world's top 19:02 oil producers yet its ability to export crude oil beyond the United States has historically been limited by infrastructure constraints recent developments particularly the expansion of the Trans Mountain Pipeline or TMX have begun to change this dynamic enhancing Canada's capacity to reach global markets as of late 2024 Canada produced approximately 5.4 million barrels of crude oil per day with projections suggesting an increase to 5.6 million barrels per day by the end of 2025 historically about 90% of Canada's crude oil exports around 4 million barrels per day were directed to the United States primarily due to the extensive North South Pipeline infrastructure connecting Canadian oil fields to US refineries while the TMX has opened new avenues for Canadian oil exports further diversification may require additional infrastructure 20:00 developments proposals for new pipelines or expansions such as increasing TMX's capacity by an additional 200,000 to 300,000 barrels per day are under consideration however these projects face challenges including regulatory approvals environmental concerns and financial viability to conclude the video let's also talk about Canada's LNG exports to countries outside the United States the LNG Canada project a joint venture led by Shell 40% alongside Petronis 25% Petrochina 15% Mitsubishi 15% and Korea Gas Corporation 5% represents a transformative investment of approximately US $40 billion and is located on Ridley Island near Kamat BC its two-train design will provide an initial export capacity of 14 mtpa approximately 1.84 bcfd of LNG delivered to global customers via iceclass 21:00 carriers capable of navigating the Pacific trade routes upon reaching its full phase 1 capacity by mid 2025 LNG Canada will facilitate Canadian natural gas's entry into Asia's major LNG importing regions particularly Japan South Korea and increasingly China where long-term purchase agreements have already been secured by Japanese utilities Toho Gas and Tokyo Gas for up to 15 and 13 years respectively lng Canada's feed stock will be supplied via the Coastal Gas Link pipeline a 670 km corridor connecting Northeast BC's Monty gas fields to the Kitamat terminal coastal Gas Link achieved full commercial operation in late 2023 and delivers up to 2.1 BCFD of natural gas ensuring LNG Canada has unrestricted access to highquality Montney gas for liquefaction once the facility begins exporting Canada will transform into a significant 22:00 global LNG supplier ending its historical dependence on US pipeline demand and unlocking the opportunity to contract volumes at prevailing global spot and long-term prices prices that have often exceeded US $10 per MMB2 in Asia under peak demand conditions beyond phase 1 LNG Canada's shareholders are evaluating phase 2 which would double capacity to 28 MTPA 3.6 BCFD subject to a positive final investment decision FID expected in late 2025 if approved phase 2 would capitalize on economies of scale already established and further entrench Canada as a diversified LNG supplier on par with major exporters such as Australia and Qatar woodfiber LNG located near Squamish BC is the second major project under construction and is scheduled to begin operations in 2027 with a capacity of 2.1 MTPA approximately 0.28 23:01 BCFD developed by Woodfiber LNG Limited a partnership between Pacific Energy Corporation and significantly backed by the Asian conglomerate Sumitomo woodfers 0.28 28 BCFD of LNG will be produced by expanding the existing Eagle Mountain wood fiber gas pipeline to convey Montney gas to its Squamish liqufaction plant the project has secured marine export permits and has received all environmental approvals benefiting from community support and commitments to minimize greenhouse gas emissions through electric motor-driven liquefaction units powered by clean hydroele electricity from the BC grid wood Fiber LNG located near Squamish BC is the second major project under construction and is scheduled to begin operations in 2027 with a capacity of 2.1 MTPA approximately 0.28 BCFD developed by Woodfiber LNG Limited a partnership between Pacific Energy Corporation and significantly backed by the Asian conglomerate Sumitomo woodfers 24:02 0.28 28 BCFD of LNG will be produced by expanding the existing Eagle Mountain wood fiber gas pipeline to convey Monty gas to its Squamish liqufaction plant the project has secured marine export permits and has received all environmental approvals benefiting from community support and commitments to minimize greenhouse gas emissions through electric motor-driven liquefaction units powered by clean hydroele electricity from the BC grid thank you for watching as an independent channel we don't have corporate backing we rely on your support to keep going if you found this video valuable please give it a thumbs up and leave a comment below it really helps more people find our work thank you so much for being part of our community check out the next video on your screen we picked it just for you MORE Fastepo Canada’s Furious Response to TRUMP: Plan to Crush 50% Tariffs Unveiled: Bluff or Heavy Hit? ... by Fastepo TRUMP Fumes as EU and Canada Ambush Trump’s 50% Steel Move Amid Ongoing Talks: What’s Next? ... by Fastepo TRUMP’s 50% Tariffs BACKFIRE! 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