A new study by an Ottawa-based think-tank says Transmix, Canada’s system for processing and shipping crude oil to the U.S., could cost taxpayers up to $1 billion.
The research was published on Thursday by the Institute for Public Policy Research (IPPR).
The report by the Centre for International Governance Innovation says that would represent an increase of about 30 per cent in Transmix processing costs since 2014.
It also predicts a 10 per cent increase in Transmissives exports to the United States.
“Transmix is not the solution to reducing emissions of oil,” said Tim White, president of the institute and a member of the advisory board for the report.
The report estimates that Transmix costs $4.2 million per day per barrel of crude oil. “
And the fact is that it’s a huge, costly mistake.”
The report estimates that Transmix costs $4.2 million per day per barrel of crude oil.
That is roughly three times the cost of processing a barrel of oil by a similar system in the U,S.
A system called Transmix Processes and Refiners Canada (TPPR) was introduced in 2014 to allow crude oil exports to be processed by a company that would then transport it to Canada.
The price for Transmix oil would be based on the price of crude on the international market.
According to the report, the Transmix process would save Canadian taxpayers $9.5 million per year.
The cost to process and ship the crude would be approximately $8.4 million per barrel.
According a statement from the Canadian Association of Petroleum Producers, “Transmissives would continue to benefit from the high efficiency and low cost of Transmix processes.”
The Canadian Association for the Advancement of Science, a non-profit group, also released a statement saying Transmix has been proven to save the country $3.8 billion.
“The research shows that TransMix is a cost-effective, cost-efficient alternative to refining crude oil and will result in substantial savings to Canadian taxpayers and the industry,” said the statement.
The report says that Transmissivs crude oil could be imported from the United Arab Emirates at a lower cost than it would have been from the U-ABA.
“This is a major positive for the industry and for our Canadian partners,” said White.
“We need to look at other options, but this is certainly one of them.”
The Institute for Policy Research is a non profit research and policy institute that supports and promotes Canada’s free-market economic system and supports a healthy environment for all.
The institute is chaired by White.
The Centre for Public Integrity is a national public interest journalism program that investigates scandals, malfeasance and corruption.