Canadian oil will stay competitive even if Venezuelan output rises, Carney says

Prime Minister Mark Carney said Canadian crude is low risk and will remain competitive even if Venezuelan output rises after the U.S. capture of President Nicolás Maduro. He noted projects to lower emissions and government moves on pipelines as factors supporting Canada’s position.

Prime Minister Mark Carney said Canadian crude oil is low risk and will remain competitive even if Venezuelan output rises after the U.S. capture of President Nicolás Maduro. He said a functioning Venezuelan economy would likely produce more oil and increase stability in the Western Hemisphere. Carney highlighted that Canadian oil is seen as lower risk for investors because of Canada’s stable governance and lower costs. He also mentioned a proposed Alberta carbon capture project as a factor that could make Canadian crude more attractive to buyers concerned about emissions. Key points: - Carney described Canadian crude as low risk and low cost and said those traits support its competitiveness. - He welcomed the prospect of greater prosperity in Venezuela and said increased Venezuelan production could follow a functioning economy. - U.S. officials said American oil companies are prepared to invest to restore Venezuelan production following the capture of Maduro. - Venezuelan crude is heavy, similar to oil from Canada’s oil sands, which has led some analysts to speculate about potential market effects. - Ottawa signed an agreement with Alberta that rolled back certain climate rules and opened discussions about a westbound pipeline; Alberta has until July 1 to submit a formal proposal and no private-sector company has yet committed to building it. Summary: Carney said these factors should help keep Canadian oil competitive in the medium and long term and pointed to lower investor risk, cost and emissions-related projects as supporting elements. The government and Alberta have discussed a westbound pipeline and a proposal deadline of July 1 is in place, though no private company has committed. Observers and analysts noted uncertainty about the timing and scale of any new Venezuelan output and its effects on markets.