Canada’s pipeline transportation system 2016

The economic environment surrounding the energy sector has changed dramatically since 2014. Significantly lower oil and natural gas prices have led to deep cuts in industry spending and many delayed or cancelled projects.

Despite these price declines, Canadian oil and natural gas production increased in 2015, along with supply in the United States. These and other market factors continue to present both opportunities and challenges for Canadian energy pipeline systems.

Canada’s Pipeline Transportation System 2016 goes beyond the headlines to provide Canadians with a long-term perspective on the economic functioning of major pipelines regulated by the National Energy Board.

Canadians depend on pipelines to deliver natural gas, natural gas liquids, crude oil, and petroleum to Canadian end-users, connect North American markets, and transport energy to ports for sale overseas. In 2015, approximately $99.7 billion worth of energy products were shipped in these pipelines at an estimated transportation cost of $7.3 billion.

A well-functioning pipeline transportation system responds effectively to changing market conditions. Some adjustments happen quickly, like changes to pipeline service offerings. Others take time, like seeking regulatory approval for, and potentially constructing, new pipeline facilities.

For a full analysis of Canada’s federally regulated pipeline system – including the what, where, why, and how – access the report here.

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