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Executive director of one of North America’s largest pipeline companies warned that US tariffs on Canadian and Mexican oil and gas will encourage inflation and endanger energy security, as a fear of global commercial war.
François Poirier, of TC energyHe told the Financial Times in an interview that US tariffs would reduce efficiency and impose an unnatural obstacle to the cross -border trade. He added that three countries should instead remove regulatory obstacles to the construction of infrastructure as a way of increasing exports of liquefied natural gas and electricity provision to encourage the growth of artificial intelligence.
Tariffs “are usually inflated in nature because you do not deliver production from the most effective point to the point of demand, and also. . . Preventing cooperation that could help in energy security, “he said.
Despite being the biggest in the world now oil The manufacturer, many aging refineries in the country are built to cope with the more severe ratings of raw oil, such as the type manufactured in Canada, not easier classes found in Texas Oilfields.
Limiting the risk of imports by increasing American gasoline prices and guessing the profits of US refineries and Canadian oil producers.
“Canada and Mexico can help the United States to achieve their goal of American energy domination, not only in terms of accessibility and domestic markets, but allowing the free world to reduce its reliance on Russian energy,” Poirier said.
The imposition of 10 percent of energy imports in Canadian and Mexican energy on Tuesday sent shock waves through the North America’s energy industry, especially in Canada, which pipes 4 mn barrels daily oil oil oil oil.
Industrial groups intensively lobbyed by US President Donald Trump’s administration to turn off energy from tariff, but only managed to provide a lower 10 percent, not 25 percent charged on the goods.
Poirier said that TC energy would be isolated from the tariff in the short term, as they paid her monthly fees regardless of gas prices or how much natural gas he traveled along his tubes.
But he warned that the financial health of customers could be affected in the long run, which was crucial to start business and investment.
Canada announced on Tuesday a wave of tariff retaliation to more than 100 billion US goods, while the Prime Minister of the Province Ontario threatened to reduce the export of electricity to the United States – which could increase the prices of consumers in the US North States.
Poirier said that US tariffs exposed the strong reliance of Canada to the US as a market of their energy export and emphasized the need to be diversified on other international markets. He added that this could be done by spreading the national industry of the LNG -Ai by building multiple oil pipelines on the coast for the delivery of Canadian raw oil to global markets.
TC Energy, based in Calgary, manages 96,000 km of pipeline for natural gas across North America. It also delivers the LNG gas, Canada, the first large export terminal in the country, which could help diversification of its energy industry far from the US when it starts operating later this year.
Poirier said the company hopes to double the capacity of its existing pipeline for LNG Canada.
Last year, TC Energy stepped down from the division of petroleum pipelines after failing to win a regulatory approval for the construction of Keystone XL, the US-Kanada cross-border pipeline, which former US President Joe Biden canceled at the environment’s reasons when he took over.
Last week, Trump called for the construction of the pipeline and suggested that he would remove all regulatory obstacles so that could happen.
Poirier said that although TC Energy was no longer in oil business, he believed that there was a potential for barrels from 1 Mn to 2 Mn daily for the incremental export capacity from Canada to the United States.
Canada “can help serve the world market, both for raw oil and natural gas, and increase delivery in the United States to improve its accessibility and reliability,” he said.
“The cooperation between the three countries allows every country to achieve more than it could individually.”
