The document discusses the economics of the proposed Trans Mountain Pipeline expansion project in Canada. It provides background on Canada's oil industry history and importance to the economy. It then examines projections for the Trans Mountain Pipeline, including estimated costs, employment impacts, and revenue. It also compares different methods for transporting oil, noting the advantages and disadvantages of pipeline, rail, and freight transportation. Finally, it briefly discusses Canada's dependence on oil and the proposed Keystone XL pipeline project.

1. The Economics of
The Trans-Mountain Pipeline Expansion

2. Outline
Canadian Oil History
Impacts on the Oil Market
Albertan Oil
Projections
The Canadian Economy
Kinder Morgan’s Pipeline Outlook
Extra Costs of Bitumen
Looking at Canadian Crude Oil Transportation
Comparison to other land transport
Keystone XL Pipeline
The Future of a Nation Dependant on Oil (Discussion) 2

3. Canadian Oil History: Impacts on the Market
1973 OPEC boycott
1980 Iran-Iraq war
1990 Iraqi Invasion of Kuwait
2008 Recession
2014 OPEC Price Fixing
3

4. Canadian Oil History: Albertan Oil
Oil was discovered in 1947 in Leduc, AB
1980’s Economic crash for Alberta oil
4

5. The relationship between oil and the CAD
Petro-currency
Approximately 11% of
Canada’s gdp and
22% of exports are
from the energy
sector.
5

6. Projecting the Future
Peak oil demand is expected in the
coming decades
6

7. The Trans Mountain Pipeline
Projections
Now 9.3 billion in estimated costs to build
the pipeline
Projected 5:1 ROI ratio
800 thousand person-years of
employment
7

8. Extra Costs of Bitumen
Saudi Arabian Oil costs
$17.66/barrel less to produce
Oilsands emissions are 39%
higher than NA average
8

9. Comparison to other land transport
FREIGHT
● Least effective
● Bad infrastructure and incident
rate
● Expensive
PIPELINE
● Diluent must be added to
thicken bitumen
● Diluted bitumen is more likely
to ignite
● Difficult to repurpose
● Can handle high volumes
easily
RAIL
● Expensive
● Raw bitumen can be
transported
● Accidents are generally
catastrophic
● Less oil is spilled
● Canadian crude exports
increased from 9000+
bbls/day in 2012 to 325000+
bbls/day 2019
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10. The Trans Mountain Pipeline is Not Alone
Keystone XL Pipeline
● Albertan oil to the US gulf refineries
● US$8-billion Project
● TransCanada has been trying to build its 830,000-barrels-per-
day Keystone XL pipeline
for more than 10 years
● Legal challenges
● Environmental concerns
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11. References
RCP Concentration Calculations and Data Final Version, background data, acknowledgements and further info. (n.d.).
Retrieved from http://www.pik-potsdam.de/~mmalte/rcps/
Jc. (2011, November 14). Using the COT Report for Canadian Dollar Futures to Help Trade Crude Oil - All Star Charts -.
Retrieved from https://allstarcharts.com/using-the-cot-report-for-canadian-dollar-futures-to-help-trade-crude-oil/
Canadian Dollar (FXC) plotted with Crude Oil (WTIC)
https://ourworldindata.org/fossil-fuels
http://theamericanenergynews.com/markham-on-energy/weak-oil-prices-undermine-any-chance-of-recovery-for-
alberta-finances-before-2019-election
https://www.investorsfriend.com/canadian-gdp-canadian-imports-and-exports/
https://www.fool.com/investing/2017/03/19/you-wont-believe-what-saudi-arabias-oil-production.aspx
https://www.pembina.org/reports/oilsands-decarbonization-factsheet.pdf
https://dailyhive.com/vancouver/trudeau-china-pipeline-lawsuit-fipa-agreement
https://thebottomline.as.ucsb.edu/2013/04/keystone-xl-pipeline-construction-back-on-the-drawing-board-states-
review-pros-and-cons
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