The possibility TransCanada Corp. (TRP.TO) could abandon its application of the Energy East pipeline project is “ridiculous” and shows Canada’s energy policy is not working, says BNN markets commentator Andrew McCreath.
“It’s ridiculous we are going to import oil when we produce it right here at home,” he said in an interview. “I mean, it’s absolutely politics over economics.”
TransCanada said it is seeking to suspend its application for its Energy East pipeline for 30 days and may abandon the project. The news comes just weeks after the National Energy Board announced a new tougher review process.
TransCanada said it will do a “careful review” of the new process to gauge its impact on the viability of the proposed pipeline to Atlantic Canada.
While producers in Western Canada struggle with low energy prices, Canada continues to import large quantities of oil to feed Eastern Canadian refineries.
In 2016, Canada imported about 759,000 barrels of oil per day, the highest level since 2012 (693,000 bpd), according to Statistic Canada. While the bulk of those imports come from the United States, Canada also consumes oil from other countries such as Algeria, Saudi Arabia and Nigeria.
“This is ridiculous. The government gives money to Bombardier,” said McCreath. “Where does Eastern Canada get its oil for its refineries? For the gasoline that eastern Canadians put in their cars?”