Canadian oil prices fall in wake of Maduro capture as Smith emphasizes importance of pipelines

CALGARY — Premier Danielle Smith has renewed the call for expanding pipeline infrastructure as Canadian oil and gas shares fell sharply on Monday, with the Toronto Stock Exchange’s energy index down 4.5% by mid-day.Suncor Energy Inc. shares were down $3.53 to $59.08, while Cenovus Energy Inc. fell about 8.7% to $21.97, and Canadian Natural Resources Ltd. lost almost 8% to $43.33.The decline comes after US forces captured Venezuelan President Nicolás Maduro on Saturday, raising concerns over the future of the global oil market, with US President Donald Trump now suggesting American oil companies will be playing a role in rebuilding Venezuela’s energy sector.Smith issued a statement saying that, “Recent events surrounding Venezuelan dictator Nicolás Maduro emphasize the importance of expediting the development of pipelines to diversify our oil export markets, including a new indigenous co-owned bitumen pipeline to BC’s northwest coast to reach Asian markets. "Alberta’s government is continuing its work to submit an application to the Major Projects Office and expects the federal government to move forward with urgency.”.WIECHNIK: US-backed Venezuela oil rebuild threatens Canadian crude exports.Smith added that her government supports building pipelines “in all directions” to ensure Canadian oil reaches global markets and is looking forward to working with “provincial and federal partners” to advance that initiative.Heather Exner-Pirot, director of energy, natural resources, and environment at the Macdonald-Laurier Institute, told the Canadian Press that the US faces significant political and logistical challenges before Venezuelan oil could reach global markets.“We’ve always known that Venezuela is a competitor and has those resources, but obviously they’ve been marked by corruption, violence, and their assets and their production have atrophied,” she said.“Just because they have oil in the ground doesn’t mean that they can get it out logistically, so I don’t think anyone in this (sector) is immediately panicking.”The market reaction on Monday has underscored the sensitivity of Canadian oil prices to geopolitical shifts and the lack of foresight on the part of the federal government on how to best develop the country’s resource wealth..US firms set to cash in as Venezuelan oil shake-up leaves China, Russia scrambling .Prime Minister Mark Carney has continued to push plans for Canada to become a “net-zero” energy superpower, which has further diminished the attractiveness of future Alberta oil projects to potential international investors.Smith, has long been a vocal critic of the federal government's pipeline policies.In an Oct. 25 op-ed in the Financial Post, she highlighted that projects like Northern Gateway, Energy East, and Keystone XL — never being completed — cost Alberta and Canada massive economic opportunities.According to her estimates, those pipelines could have added $21 billion per year to GDP, created more than 62,000 jobs, and generated significant government revenue.She cited University of Calgary economics professor Trevor Tombe, who put the economic cost of not building pipelines at roughly $240 billion in losses for the country.“The past six months have made it clear that Canadians nationwide support the growth of our energy sector,” Smith stated.“A large majority of Canadians in every single province support building a new Alberta oil pipeline to Canada’s West Coast, according to recent polling.”

Canadian oil prices fall in wake of Maduro capture as Smith emphasizes importance of pipelines

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