Alberta’s oil producers are facing an extraordinary challenge caused by pipeline bottlenecks combined with growing production, Scotiabank Economics said in a report released this week. The bottlenecks could pressure the industry’s 2019 earnings by as much as US$11.33-29.45 billion (C$15-39 billion), the bank said, and government revenues could suffer a loss of between US$1.13 billion (C$1.5 billion) and US3.1 billion (C$4.1 billion). This scenario, the bank said, factored in all other relevant circumstances remaining equal, with the only variable being pipeline capacity. With adequate capacity, Scotiabank’s analysts said, these losses will not be borne. However, the bank is wary about a proposal from the industry to have the government order a production cut to alleviate pressure on what pipeline capacity there is. “The bar for the government to intervene directly into the energy sector should be a high one and the policy option should only be considered in an […]