The Government of Saskatchewan is calling on Ottawa to end the tanker ban on the north coast of British Columbia, saying the move would expand global market access for Western Canadian energy and help close the price gap facing heavy oil producers around Lloydminster.
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Saskatchewan announced its position on Oct. 26, throwing its support behind the oil tanker ban on B.C.’s north coast being repealed through Bill C-264, a bill introduced by the Conservative Party of Canada.
Why Saskatchewan wants the ban lifted
The provincial government says removing the ban would increase export opportunities for Western Canadian energy and drive economic growth in both Saskatchewan and Canada as a whole, according to a release from the Government of Saskatchewan.
“Every new export opportunity helps strengthen Canada’s economy,” Premier Scott Moe said in the release. “Greater egress capacity means more jobs, more investment, better prices for Western Canadian oil, and more revenue to support the services that Canadians rely on.”
Saskatchewan’s Energy and Resources Minister Chris Beaudry said the north coast of B.C. offers reduced transit times to Asian markets and lower per-barrel shipping costs compared to existing export routes.
“Saskatchewan supports evidence-based decision-making that considers the impressive performance of Canada’s marine regulation regime, rather than blanket bans,” Beaudry said.
What it means for the Lloydminster heavy oil sector
The province says new export capacity would help close what it describes as a widening price discount for Western Canadian Select heavy oil, the benchmark grade most closely tied to production around the Border City.
Lloydminster-area producers have been watching the tanker ban debate closely, as the region’s economy is built around heavy oil extraction and the oilfield service jobs that depend on it. The announcement comes weeks after local industry leaders touted optimism in the heavy oil sector at this year’s Lloydminster Heavy Oil Show, where producers pointed to growth in the region’s output and workforce.
Saskatchewan’s position echoes previous federal-provincial energy discussions, including last year’s energy deal between Alberta and Ottawa aimed at boosting exports and jobs.
The federal debate over the tanker ban
The north coast tanker ban, known formally as the Oil Tanker Moratorium Act, prohibits vessels carrying more than 12,500 metric tonnes of crude or persistent oil products from stopping, loading or unloading at ports along B.C.’s northern coastline.
The policy has drawn opposition from Saskatchewan and Alberta, while B.C. Premier David Eby and some coastal First Nations have called for the ban to remain in place. Federal officials have previously said it remains premature to draw conclusions about the ban’s future while the government reviews its options.
Saskatchewan says it will continue to support measures aimed at helping Canadian energy producers reach new markets, attract investment and create long-term economic opportunities for workers and businesses in the province.
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