ASSESSMENTS

Canadian Energy and British Columbia's General Elections

May 9, 2013 | 20:51 GMT

An oil extraction facility in Fort McMurray, Alberta province, Canada, in 2009

MARK RALSTON/AFP/Getty Images

Summary

British Columbia's provincial parliamentary elections on May 14 will highlight the constraints that the neighboring province of Alberta faces in developing its energy resources. To get its resources to markets, landlocked Alberta must contend with competing interests in both British Columbia and the United States. Alberta's challenges are important in the context of the development of Canada's energy sector and how it interacts with U.S. and international energy markets. 

Polls show the New Democratic Party of British Columbia leading, and if it wins, local party leader Adrian Dix will become the province's next premier. The party's left-leaning support base opposes pipelines passing through British Columbia, making it tougher for Alberta — and the Canadian energy industry in general — to reduce its reliance on the U.S. transportation network. This limitation has caused Canada's oil prices to fall far below international rates and threatens to stall some of the anticipated growth in its energy production.

Interprovincial politics are constraining Canada's ability to fully develop its oil industry....

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