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Alberta oil security touted after Saudi attack
Alberta’s premier is pumping up the province’s oil industry for its "safety, stability, security" following drone attacks on Saudi Arabian sites which spiked global oil prices.
Jason Kenney, speaking in New York on the American business network Bloomberg Monday, said gulf-based oil has a security premium that Alberta oil doesn’t and Americans can benefit from this.
"If they don’t want to pay a security premium they should be operating more and investing more in Alberta," said Kenney, adding an important factor would be completing pipelines.
Oil prices rose after Saturday’s attack and surged Monday by as much as 19 per cent, the biggest daily move since the Gulf War in 1991.
Yemen's Iranian-backed Houthi rebels claimed responsibility saying they launched 10 drones, but, according to the United States, satellite images show the attacks came from either Iraq or Iran.
Kenney said this indicates more uncertainty ahead for that region and its oil. "The strike against the refineries in Saudi is not the end of the story, it points to a deeper problem in terms of instability and unpredictability from OPEC countries, so I hope investors realizes that safety, stability, security in Canada is worth an awful lot."
Kenney is on a week-long tour of American and Canadian cities where he's attempting to improve investor confidence in Alberta energy.