Strathcona Resources is working to achieve the daily export of 250,000 barrels of crude oil from the northern coast of British Columbia to Asian markets. This action requires a permit from the Canadian government to make an exception regarding the tanker ban.
Details of the Oil Export Plan
Adam Waterous, CEO of Strathcona, announced that the company plans to submit a proposal to Prime Minister Mark Carney next week for transporting crude oil via rail to a new export terminal in Prince Rupert. Waterous believes that exports could begin within two years, which is significantly sooner than the expected timeline for the new oil pipeline to the Pacific coast, which is anticipated to be operational by the early to mid-2030s.
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Legal and Political Challenges
Currently, Canada sends about 90 percent of its oil exports to the United States, a dependency that has been criticized due to trade tensions with Washington. However, there is also the issue of a federal law. The tanker ban law, passed in 2019, prohibits tankers carrying more than 12,500 tons of crude oil or stable oils from loading or unloading on the northern coast of British Columbia. Prime Minister Carney emphasized in July that he is committed to this ban, which has impacted Alberta's efforts to develop a one-million-barrel pipeline to the coast.
Strathcona's plan seeks to bypass the need for a new interprovincial pipeline, but it cannot escape the tanker restrictions. Waterous argues that Prince Rupert has the necessary infrastructure due to the arrival of propane shipments by rail. The company also has experience in transporting crude oil by train and has sent up to 80,000 barrels per day to the U.S. Gulf Coast.
However, political obstacles remain significant. David Eby, Premier of British Columbia, environmental groups, and many coastal Indigenous communities oppose lifting this ban. Waterous hopes that partnering with Indigenous communities can help advance this project. If approved, the proposed 250,000-barrel terminal could increase Canada's crude oil exports from the shores of British Columbia by nearly 50 percent. Currently, this plan offers a faster route to Asian markets, provided Ottawa is ready to reopen discussions on tankers.
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