Canadian Provinces Face Disagreement Over Pacific Oil Pipeline Development
A disagreement exists between the Canadian provinces of Alberta and British Columbia regarding the construction of an oil pipeline to the Pacific coast. This situation occurs as Canada aims to diversify its economic partnerships beyond the United States, with a particular focus on increasing energy exports to Asian markets.
Alberta's Proposal for Pacific Access
Alberta, a major oil-producing province, has advocated for a new oil pipeline from its oil sands to British Columbia's northern Pacific coast. Alberta Premier Danielle Smith's government has developed its own proposal for this project, intending for a private company to eventually undertake its construction.
Such projects in Canada have faced challenges. Three oil pipeline proposals have not proceeded in the past decade due to opposition, often related to environmental protections. Currently, almost all of Canada's crude oil exports are directed to the United States.
British Columbia's Opposition
British Columbia's Premier David Eby has stated his province's opposition to Alberta's pipeline proposal, describing it as "fictional" and "political." Eby also suggested that the proposal could impede British Columbia's efforts to expand its liquified natural gas (LNG) exports to Asia. Premier Smith, in response, has referred to Eby's stance as "un-Canadian."
Federal Context and National Ambitions
The interprovincial disagreement coincides with federal efforts to reduce Canada's economic reliance on the U.S. and to double non-U.S. exports within the next decade. Prime Minister Mark Carney has articulated a goal to position Canada as a global "energy superpower."
During a recent announcement of "nation-building projects" aimed at Canada's growth, Carney's list included critical mineral mines and an LNG project in British Columbia, but no new oil pipelines.
Heather Exner-Pirot, director of natural resources, energy and the environment at the MacDonald-Laurier Institute, characterized the issue as a persistent point of contention in Canadian politics.
When questioned about these provincial differences, Prime Minister Carney emphasized the need for federal and provincial governments to engage in dialogue, identify areas of cooperation, and acknowledge points of disagreement.
Carney has also indicated openness to another pipeline project: Keystone XL to the U.S. Sources indicated that a revival of this project was discussed during a meeting between Carney and former U.S. President Donald Trump in October, prior to a halt in trade talks.
Carney has not publicly supported either provincial stance regarding the Pacific pipeline but has indicated openness to a pipeline if Alberta commits to developing its carbon capture and storage program, noting that discussions are ongoing.
Alberta Premier Smith's office stated its expectation for federal support for their project, emphasizing the need to eliminate internal trade barriers and facilitate trade with other countries. Premier Eby's office referred to his public statements, where he reiterated that "There is no route, there is no proponent, there is no project," expressing continued "frustration" with the ongoing discussion.
Historical Context of Disputes
This disagreement is part of a longstanding pattern between the provinces. British Columbia has a history of environmental activism, while Alberta's economy is largely dependent on its oil and gas industry.
Andrew Leach, a Canadian energy economist at the University of Alberta, stated that the primary benefits of such projects would accrue to Alberta, while British Columbia would bear the majority of the long-term risks.
Previous pipeline efforts have encountered significant opposition. The Enbridge Northern Gateway pipeline project from Alberta to BC was canceled in 2016 following court rulings that found inadequate consultation with Indigenous communities. Enbridge reported expenditures exceeding C$370 million on the project.
Enbridge spokesperson Gina Sutherland indicated that improved federal regulatory policies are necessary before new large energy projects would be considered. Alberta's government views certain federal policies, including an oil tanker ban off the BC coast (which BC Premier Eby and Indigenous leaders support maintaining), as impediments to energy development.
The Trans Mountain (TMX) pipeline, the sole existing oil pipeline from Alberta to BC, faced substantial opposition but was completed after the federal government acquired it for C$4.5 billion in 2018. The total project cost reached C$35 billion. TMX is estimated to have generated over C$12.6 billion in oil revenue for Canada and has contributed to a sixfold increase in non-U.S. crude oil exports over the past year.
A poll conducted in October by the Angus Reid Institute indicated that 59% of Canadians, including 56% of British Columbia residents, support the concept of a second Alberta-BC pipeline.