On Tuesday, December 3rd, Trans Mountain pipeline expansion project began at Acheson, Alberta. The controversial expansion started two weeks before a federal court of appeal is set to hold hearings on challenges to the project. The expansion would more than double the oil flow from oil-rich Alberta to British Columbia, and potentially from there to export markets in Asia. But British Columbia’s government has been a vocal opponent of the pipeline in bitter disputes with neighboring Alberta. One of those issues being, overall emissions in Alberta rose by 23% between 2005 to 2017 while the emissions per barrel of oil fell by 28% between 2000 and 2017. While there is more oil production than 20 years ago, Alberta’s economy has reliance on the oil industry.
World Oil Market
Big Corn and Big Oil have been dueling over the future of the Renewable Fuels Standard, which requires oil refiners to mix biofuels like corn-heavy ethanol into their fuel. The Renewable Fuel Standard requires refineries to blend increasing volumes of biofuels into their fuel each year. The proposed plan would include an increase to biofuels requirements for 2020 of 1 billion gallons (3.8 billion liters) and the agricultural industry wants the administration to force larger refineries to make up for the exempted gallons through reallocation. The proposed plan, discusses 500 million gallons for conventional biofuels and 500 million gallons for advanced biofuels (like biodiesel).
Oil prices edged lower on Tuesday after a key U.S. manufacturing report dimmed the outlook on the manufacturing industry and invoked lingering fears of a global recession.