Alberta Premier Danielle Smith is promoting the approval of her province’s new proposal for another oil pipeline. From there, she hopes to extend it to the British Columbia coast. Though framed here as an agriculture promotion, this initiative will clearly help export oil to meet the growing demand in Asia. Smith would like to see tangible changes from the federal government. She has more specifically been following the talks around the Pathways Alliance carbon capture and storage project. She suggested that more movement or news could come as soon as next week, in advance of the Grey Cup.
In another recent statement, Smith highlighted the need to work in concert with Ottawa to cut through the “jumbo burrito” of red tape involved in energy export. She noted, “I’m still working with the federal government to see if we can come up with a memorandum of understanding so we can get a bitumen pipeline to Asian markets, as well as the Pathways project, as well as remove some of the bad laws that will allow for that investment to occur.”
The subject of any new pipeline has been a hot button issue in Canada for years. B.C. Premier David Eby has called the premise “fictional,” underscoring the persistent doubt about the viability of such projects. The new Justin Trudeau-led federal government rides in with a more cautious savior complex. They’re uniquely vulnerable to laws like the Impact Assessment Act or emissions caps. These regulations have been cause for concern and deepened the reluctance to even propose new pipelines.
Even with these hurdles, Smith is hopeful when it comes to Alberta’s energy future. She says that the future of oil exports has to be focused on low carbon solutions. “If we can get rid of some of the bad laws, I have a lot of optimism we’ll be able to build pipelines in virtually any direction,” she stated.
The federal government is very much interested in stimulating the energy movement. They’re doing this especially to ramp up liquefied natural gas (LNG) exports. Asia’s demand for LNG, which more often than not replaces coal in energy production, has been favorably acknowledged by the Prime Minister. This is a huge opportunity for Canada to increase the capacity of its main export while helping to combat climate change.
Smith’s ongoing talks with her provincial and federal counterparts address a wide range of energy policy and infrastructure development. She is hoping to build a new, multi-billion dollar clean technology industry for Canada by leveraging strategic political relationships and investment in large energy projects.
Prime Minister Carney recently reinforced Smith’s confidence in the project’s viability, stating, “Danielle’s on line one. Don’t worry, it’s going to happen.” This recognition of better communication and collaboration should not be mired by regulatory challenges between Alberta and Ottawa.
Even as Alberta makes strides in international energy innovation, the road ahead is still littered with political ramifications and ecological concerns. The future of energy exports in Canada will likely shape the discourse around economic growth and environmental responsibility in the coming years.
