"Lack of market access is hurting heavy oil producers, government revenues and the Canadian economy," said Alberta's budget documents. "Although WTI prices are forecast to improve gradually over the forecast period, Alberta producers will not be able to fully realize the gains. For Cenovus, heavy oil price differentials and pipeline capacity constraints were behind the company's decision to reduce production rates. Indeed, by the government's own forecast, additional pipeline capacity would allow Alberta producers to receive up to $7 US more per barrel. It expects that would lift capital investment by an estimated $10 billion between 2018 and 2023, compared to going without additional pipeline access.

Source: CBC News March 23, 2018 01:30 UTC