B.C. premier prefers refinery over pipeline after Maduro capture

B.C. Premier David Eby says he would support building a new oil refinery in Canada over a new pipeline carrying oil bound for Asia.

In a press conference on Tuesday, Eby argued that if tax dollars are going to be used to support Canada’s energy sector, the focus should be on refining oil at home and not shipping it elsewhere.

“If we have got tens of billions of dollars to spend, I think we should spend it on a refinery, and we should develop oil products for Canadians and for export instead of being reliant on American and Chinese refineries to do it for us,” he told the media.

The comments came after Alberta Premier Danielle Smith said that the U.S. capture of Venezuelan President Nicolás Maduro underlines the urgency of building oil pipelines in Canada.

A day after Maduro’s capture, several Canadian oil stocks dropped in value.

What impact could Venezuelan oil have on Canada?

U.S. President Donald Trump said Tuesday that Venezuela would be providing 30 million to 50 million barrels of oil to the U.S., and he pledged to use proceeds from the sale of this oil “to benefit the people” of both countries.

A revitalized Venezuelan oil industry could mean additional competition for Canadian energy companies to sell their products on the international market.

Smith said that the events “emphasize the importance that we expedite the development of pipelines to diversify our oil export markets.”

However, Eby says that the focus should be on refining oil at home.

“I don’t understand why, if we’re talking about massive public investment into supporting Albertans in this fragile global time, we can’t talk about supporting all

Canadians with oil and gas products that are made right here at home while we transition,” Eby said.

The B.C. premier has repeatedly criticized his Alberta counterpart for pushing the construction of a new pipeline to B.C.’s northwest coast without a private-sector proponent.

First Nations against pipeline

“I hope that that’s where some of the conversation goes following the uncertainty that comes from Venezuela,” Eby added.

Alberta and the federal government signed a memorandum of understanding in November, laying out a pathway for a potential privately owned pipeline, over heavy criticism from some First Nations.

A new pipeline to the province’s northwest coast would also put an in-effect oil tanker ban into question.

During the Assembly of First Nations in Ottawa in December, chiefs voted unanimously to uphold the oil tanker ban.

—With files from The Associated Press and Raynaldo Suarez.