The capture of

Venezuelan

leader

Nicolás Maduro

over the weekend makes it more crucial for Canada to

build another pipeline

as heavy oil from the South American country eventually re-enters the system, says

Bank of Nova Scotia’

s chief executive

Scott Thomson

.

Oil produced in Venezuela is similar in nature to the oil pumped from Western Canada since they are both heavy crude, which United States refineries on the Gulf Coast specialize in refining.

“As the Venezuelan crude re-enters the system over the next five to 10 years, having another pipeline here for Canada is really important,” Thomson said at an event on Tuesday. “Hopefully, that provides more impetus to the ‘

Build Canada

‘ program that Prime Minister Mark Carney is trying to implement.”

A new pipeline, called the Trans Mountain pipeline expansion project, officially started transporting oil from Alberta to British Columbia last year, but talks on another pipeline are in the cards as Ottawa looks to fast-track the building of key projects linked to sectors such as energy, defence and mining to boost Canada’s economy and reduce its reliance on the U.S.

Thomson said the past 10 years have been a bit of a “lost decade”

in terms of growth

for the Latin American region “partly because the political environment moved left” and because the U.S. moved away from the region and China came in.

But the political environment is moving more towards the right or centre-right, he said, with more U.S. influence, which could be positive for the region in the medium or long term.

“With the (Donald) Trump doctrine, the Monroe Doctrine of increasing emphasis in the Western Hemisphere, that’s good for growth,” Thomson said. “It’s a good thing for the U.S.; it’s a good thing for the Bank of Nova Scotia.”

National Bank of Canada

chief executive Laurent Ferreira, who also spoke at the event, said there’s an “economic war” going on and Canada needs to speed up the building of its key projects if it wants to be a part of this “new world order.”

He said the events this weekend should play into Canada’s decision-making process after Maduro was captured by the U.S. and now faces multiple criminal charges in New York.

Ferreira said any opposition to Ottawa’s nation-building plan, “whether it’s ideology, whether it’s bureaucracy, is not a good thing for our country.”

  • What the U.S. takeover of Venezuela could mean for Canada’s oil industry
  • William Watson: Are we for Maduro’s arrest or against it?

• Email: nkarim@postmedia.com