Oil and gas sector cautious as deadline on Trans Mountain decision nears

Trudeau government expected to announce whether it will approve pipeline for second time on Tuesday

Pipes are seen at the Kinder Morgan Trans Mountain facility in Edmonton, Alta., Thursday, April 6, 2017. (THE CANADIAN PRESS/Jonathan Hayward)

Observers on the front lines of Western Canada’s oil and gas sector are looking forward to what’s widely expected to be approval of the Trans Mountain pipeline expansion on Tuesday while acknowledging the decision by Ottawa won’t solve all problems.

CEO Clayton Byrt of Pimee Well Servicing LP, a service rig company owned by six northern Alberta First Nations, says approval of the pipeline is a “big deal” because it will encourage investment by the oilsands producers he counts as customers.

He says more activity will support Pimee’s ability to retain its 140 employees — almost all Indigenous — and eventually grow the company to continue to offer good jobs to First Nations members.

The company counts Imperial Oil Ltd. and Cenovus Energy Inc. among its customers, both of whom have delayed building or completing steam-driven oilsands projects because of uncertainty about how they will get the oil to market.

READ MORE: Is Trans Mountain a pipeline to prosperity for Indigenous communities?

Analyst Samir Kayande, a director with RS Energy Group, says the expansion to triple capacity of the existing Trans Mountain pipeline will help with market access when it comes on stream but that likely won’t happen until 2022 and could be held up by more legal challenges.

He says the pipeline isn’t big enough to fix Western Canada’s oil transportation woes on its own, nor does it address the general downturn in energy investing in North America and the lower quality of Canada’s resources compared to premier U.S. oil and gas basins.

“Even though it’s positive and it’s important, the impact on the investment climate will probably be a little bit muted at least until you can actually start construction,” said Kayande.

“It really depends on what the next round of legal challenges looks like.”

The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

GALLERY: 2019 JulyFest parade

It was a not-so-balmy 11 degrees and raining for the 2019 JulyFest… Continue reading

Four in custody after armed robbery, suspects linked to other recent crimes

Four people are in custody after Cranbrook RCMP responded to a robbery… Continue reading

Former Fernie Ghostrider re-signs with Vancouver Canucks

Josh Teves has signed a two-year contract with the NHL team

Clovechok looks into complaints about seal-coated roads in Wasa

Columbia River Revelstoke MLA Doug Clovechok says he is hearing from Wasa… Continue reading

Author to host book signing in Kimberley

The book ‘Lost’ tells the story of Kimberley local Paul Kerr who went missing on the Grey Creek Pass in 2015

Rich the Vegan scoots across Canada for the animals

Rich Adams is riding his push scooter across Canada to bring awareness to the dog meat trade in Asia

Canadian high school science courses behind on climate change, says UBC study

Researchers found performance on key areas varies by province and territory

Six inducted into BC Hockey Hall of Fame

The 26th ceremony in Penticton welcomed powerful figures both from on and off the ice

RCMP investigate two shootings in the Lower Mainland

Incidents happened in Surrey, with a victim being treated at Langley Memorial Hospital

CRA program to help poor file taxes yields noticeable bump in people helped

Extra money allows volunteer-driven clinics to operate year-round

Recall: Certain Pacific oysters may pose threat of paralytic shellfish poisoning

Consumers urged to either return affected packages or throw them out

How a Kamloops-born man helped put us on the moon

Jim Chamberlin did troubleshooting for the Apollo program, which led to its success

Sexual harassment complaints soaring amid ‘frat boy culture’ in Canada’s airline industry

‘It’s a #MeToo dumpster fire…and it’s exhausting for survivors’

Most Read