Description
The province of Alberta’s Department of Energy requested from Wood Mackenzie 1 Incorporated (Wood Mackenzie) an expert report to estimate an order of magnitude impact on crude oil netbacks received by Canadian producers, in Alberta, from increasing West Coast crude oil export capacity. Wood Mackenzie used the proposed Enbridge “Northern Gateway” pipeline project as a proxy to assess the potential impact of additional crude oil export capacity to the west coast. The proposed Northern Gateway Pipeline would run from Bruderheim (near Edmonton) to Kitimat with a return condensate pipeline for importing oil sands diluent material. This paper describes our analysis and conclusions on the impact on the netback to Alberta crude oil producers within the early years of service (2016-2025) .