Pipeline news

As the economy transitions toward net-zero emissions, Gordon Cope discusses the impact the pandemic has had on the North American oil industry, and why ‘cleaner’ hydrogen pipelines may be a wise investment.

North America relies on millions of miles of pipelines to deliver fossil fuels in a timely and cost-efficient manner. A raft of challenges, from the COVID-19 hangover to regulatory and environmental demands, are putting unprecedented pressure on the sector, however.

Canada Thanks to over 160 billion bbl of bitumen in the oilsands, Canada’s crude production and exports continue to climb. As of December 2021, it shipped slightly over 4 million bpd to the US (a record), but this also represents the current capacity of pipelines heading south. IHS Market projects oil sands production to rise a further 1 million bpd by 2030, placing a significant squeeze on infrastructure.

Several potential solutions are in the offing. For the last several years, Enbridge’s 760 000 bpd Line 3, which runs from Alberta to Minnesota, has been operating at half capacity due to advanced age. The refurbishment has been under attack as environmentalists protested its