The numbers are officially in: according to a report released Tuesday by the University of Calgary, the Alberta Government is losing over $7 Billion in oil revenues per year.
The culprits? Pipeline capacity and access to markets for heavy oil.
"Western Canada is experiencing significant pipeline capacity constraints which have dramatically increased this discount relative to historical levels."
The report goes on to say that with the government losing approx $6.60 on every barrel of heavy oil exported to the United States, the expansion of pipelines like the Trans Mountain project are paramount.
Earlier this week, Alberta Premier Rachel Notley indicated her government will be sending lawyers to Ottawa for discussion with their federal counterparts as they prepare for the National Energy Board (NEB) hearings on the Trans Mountain pipeline.
A link to the study can be found here.