Canada’s already beaten-down oil industry is facing a fresh setback as regulatory issues bog down another key pipeline project.
The roughly one-year delay to Enbridge Inc.’s expansion of its Line 3 conduit, announced last week, threatens to prolong a shortage of pipeline space that has made it difficult for Canada’s drillers to ship their crude to refineries. That pinch caused a crisis in the industry last year, sending local oil prices to record lows and prompting the government of Alberta to embark on an unprecedented intervention in the market.
Construction is being pushed back because the Minnesota permitting process won’t be complete until November, and the federal permits won’t be received until as long as 60 days after that.
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