|By PR Newswire||
|March 7, 2014 10:27 AM EST||
LONDON, ON, March 7, 2014 /CNW/ - The Ontario Petroleum Institute, which represents Ontario oil and natural gas producers, welcomes the decision by the National Energy Board (NEB) to approve Enbridge's Line 9B reversal project.
In recent years, the significant increases in North American oil production have resulted in dramatic changes in the market, and specifically to the prices received by Ontario producers. Oil prices have been discounted up to 20 per cent lower than the benchmark set for oil by the price of West Texas Intermediate (WTI) and Brent crude oils.
By having new market alternatives, Ontario producers would receive prices that more closely reflect oil prices in other parts of North America. The eastward flow of Line 9B now makes tapping into new markets possible for Ontario producers.
"The discounted oil prices have prompted producers in the province to look for alternative markets for Ontario oil," said Hugh Moran, Executive Director of the Ontario Petroleum Institute. "The NEB's decision to approve the Line 9B reversal has opened the doors for producers to sell Ontario oil to refineries in Eastern Canada at a cost that is far more economical than shipping by road, rail and water."
The Ontario Petroleum Institute believes the decision to reverse the flow of Line 9B significantly benefits Ontario economy.
"The province's oil and natural gas industry will benefit from the skilled jobs required for the reversal of Line 9B, most of which are transferable to Ontario producers," said Mr. Moran. "Having more stable oil prices and new options for market will encourage additional exploration and development in the province, which would also lead to job creation."
Ontario Petroleum Institute members have been safely using pipelines in gathering and transporting oil for more than 100 years. The industry fully expects Enbridge to meet its responsibilities and commitment to operating Line 9B to the highest standards to ensure the health and safety of the communities along the route.
About the Ontario Petroleum Institute
The Ontario Petroleum Institute is a non-profit industry association which represents oil and natural gas producers, contractors, geologists, petroleum engineers and other professionals, individuals or companies directly related to the oil and natural gas, hydrocarbon storage and solution mining industries of Ontario. The objectives of the Institute are: to encourage responsible exploration and development of the oil, natural gas, hydrocarbon storage and solution-mining industries in Ontario; to maintain close liaison with government agencies which regulate the industry; to disseminate information relevant to member needs; to promote the legislative goals of the membership and to inform and educate the general public on the significance of the industry to the province of Ontario. www.ontpet.com.
SOURCE Ontario Petroleum Institute