Crude oil pipeline expansion summary

The Canadian Association of Petroleum Producers has been working with producers to address issues associated with the development of new pipeline capacity from western Canada. This document presents an assessment of the need for additional oil pipeline capacity given the changing mix of crude oil types and forecasted supply growth. It is of particular interest to crude oil producers and contributes to current available information for market participants. While detailed, the underlying analysis does not account for all the factors that may come into play when individual market participants make choices about which expansions they may support. The key focus is on the importance of timely expansion. It was emphasized that if pipeline expansions lags the crude supply growth, then the consequences would be both significant and unacceptable. Obstacles to timely expansion are also discussed. The report reviews the production and supply forecasts, the existing crude oil pipeline infrastructure, opportunities for new market development, requirements for new pipeline capacity and tolling options for pipeline development. tabs., figs., 1 appendix