Line 3 pipeline setback more bad news for Canadian oilfield workers: CEO of industry group

The president of the Petroleum Services Association of Canada says a court ruling in Minnesota that could further delay Enbridge Inc.’s Line 3 oil pipeline replacement project spells more bad news for Canadian oilfield workers.

Gary Mar says investor confidence in Western Canada’s oil industry is at low ebb and that has resulted in lower producer spending on exploration and production and fewer jobs for his members.

On Monday, the Minnesota Court of Appeals said state regulators must conduct a further review of the Line 3 project because its environmental impact statement doesn’t address the possibility of an oil spill into the Lake Superior watershed.

Watch below: Some Global News videos about Enbridge’s Line 3 pipeline.

Enbridge said in March the project, which is to add 370,000 barrels per day of export capacity of Canadian crude, would be delayed until the second half of 2020, a year later than expected, due to permitting issues.

Oil companies in Canada have cancelled or delayed spending on oilsands and conventional oil projects and the province of Alberta has imposed production quotas because of price discounts blamed on crude output exceeding pipeline capacity.

Mar says the problems with getting production to Canada’s main customer illustrates the importance of being able to export to other markets around the world through access to tidewater with projects such as the Trans Mountain pipeline expansion to the West Coast.

“Whenever there is a delay or some impediment to takeaway capacity, that has a direct affect on the interest of producers in committing capital to projects,” Mar said.

“Without producers committing themselves to capital projects, there’s no work for our members.”

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