Capacity crunch
Canada’s oil sands need new pipelines to new markets
A build-up of oil-sands production without sufficient pipeline capacity to take all the new oil to consumers threatens the long-term viability of the developments, believes Alberta’s government. The province’s premier, Alison Redford, summed up the problem in a catch-phrase called the “bitumen bubble”, which has caught on in a general public concerned for the future viability of oil-sands exports. Her theory, shared by some analysts, is that rising output from the oil sands will by 2016 eclipse the pipeline capacity that links the projects with refiners. This would drive down the price of Canada’s oil, which would be heavily discounted against higher quality or more accessible oil closer to
Also in this section
5 March 2026
Gas is a central pillar of Colombia’s energy system, but declining production poses a significant challenge, and LNG will be increasingly needed as a stopgap. A recent major offshore gas discovery offers hope, but policy improvements are also required, Camilo Morales, secretary general of Naturgas, the Colombian gas association, tells Petroleum Economist
4 March 2026
The continent’s inventories were already depleted before conflict erupted in the Middle East, causing prices to spike ahead of the crucial summer refilling season
4 March 2026
The US president has repeatedly promised to lower gasoline prices, but this ambition conflicts with his parallel aim to increase drilling and could be upended by his war against Iran
4 March 2026
With the Strait of Hormuz effectively closed following US-Israel strikes and Iran’s retaliatory escalation, Fujairah has become the region’s critical pressure release valve—and is now under serious threat
