Canada Government Approves Oil Pipeline to Pacific Coast, But Obstacles Remain

TORONTO — Canada's government on Tuesday approved a controversial oil pipeline to the Pacific Coast that would allow oil to be shipped to Asia, which would be a major step in the country's efforts to diversify oil exports.

Enbridge's Northern Gateway project, along with the controversial Keystone XL pipeline, is critical to Canada, which needs infrastructure to export its growing oil sands production. The northern Alberta region has the world's third-largest oil reserves, with 170 billion barrels of proven reserves.

The approval was expected but whether the Northern Gateway pipeline ever gets built remains in question as there is fierce aboriginal and environmental opposition in British Columbia. Court challenges are expected. Read more...