Asked if the company's refinery could use Alberta's heavy grade of oil, Scott said it can use "some amount" and that it has been doing modelling and testing. Despite this fact, the Trudeau government has allowed environmental issues in general, and climate change in particular, to dictate energy policy in Canada. for immediate delivery to its refinery through the Panama Canal. Russ Girling, president and CEO of TC Energy, has previously stated that the Energy East project is unlikely to be revived given passage of Bill C-69 — the stricter new regulatory regime for natural resource projects under federal jurisdiction — by the Trudeau government last June.
That was in 1973 when an OPEC oil embargo led to fuel shortages in North America. “But the overarching theme is not different — and that is security of supply, redundancy of supply in the event of catastrophic events, such as a pandemic, and just the whole geopolitics of the world and trying to shield ourselves from things like price wars.”. "Over the ... next few weeks here, we'll be acquiring crude oil, organizing shipping and then finalizing the approvals for those ships to transport the crude oil," said Kevin Scott, chief refining and supply officer for Irving Oil. Scott said they hope to receive their first barrels from Western Canada by ship in late June or early July.
"Today we run some synthetic crude oil, which is lighter, from from Western Canada," he said. © Glacier RIG Ltd., all rights reserved. The privately held refiner applied last month to the Canadian Transportation Agency (CTA) to use foreign tankers in order to increase the amount of domestic crude it gets from offshore Newfoundland and Western Canada.
The company wants to increase the mix of Canadian crude it uses, which is currently in the range of 20 per cent.
"Part of this is really opening up the option for us to run more Canadian crude," Scott said. One-year waivers for lower cost foreign tankers set a precedent for ongoing waivers to the Coasting Trade Act in the name of energy security, while substantial new pipeline capacity to Burnaby and the U.S. Gulf Coast would provide the means. "This would increase our capability to get access to Western Canadian crude, either from Vancouver or from the U.S. Gulf Coast, which is a slightly shorter route," he said. Irving Oil, the operator of the country's largest refinery, is aiming to begin receiving more crude from Western Canada — delivered to New Brunswick in tanker ships — starting this summer. Canadian oil presently represents about a fifth of the Saint John refinery’s crude slate, most of which comes from offshore NL by domestic tankers, and a “small amount” from Western Canada by rail — and disrupted by nationwide rail blockades earlier this year.
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