Canada Seeks to Diversify Oil Exports, Sparking Coastal Opposition
Alberta and teh Canadian federal government have agreed to explore the construction of a pipeline to the Pacific Coast, aiming to reduce the province’s reliance on the United States for oil exports. The move comes as concerns grow over the vulnerability of canada’s heavily U.S.-focused trade relationships.
Former Bank of England Governor Mark Carney, a key figure in the initiative, stated that Canada’s close ties with the U.S., “onc a strength,” have become a weakness, especially as the U.S.reconfigures its own trading partnerships. Currently, over 95% of canada’s energy exports go to the United States.Carney has set a goal to double Canada’s non-U.S.exports within the next decade, citing American tariffs as a deterrent to investment.He believes a pipeline could also lessen the price discount currently applied to Canadian oil sold to U.S. markets.
Alberta Premier Danielle Smith anticipates the pipeline could facilitate the export of over 1 million barrels of oil per day, primarily to Asian markets. the agreement includes a potential adjustment to the existing oil tanker ban off parts of the British Columbia coast, contingent on the pipeline’s progress.
However, the proposal faces important opposition, particularly from British Columbia. Premier David Eby argues the project lacks a proponent, permits, and even a defined route, calling the agreement a ”distraction” from viable projects. Coastal First Nations have also voiced strong objections, with President Marilyn Slett stating they have “zero interest” in economic benefits from a project that threatens their way of life.
This isn’t the first attempt to build a pipeline to the Pacific.while the federal government under Justin Trudeau approved one controversial pipeline in 2016 – which the government ultimately had to build itself due to opposition – the Northern Gateway project,which would have transported 525,000 barrels daily to Asia,was rejected.
The current agreement links the pipeline project to a proposed carbon capture initiative, requiring both to be developed in tandem. Ottawa and Alberta will collaborate to identify new emissions-reduction projects to be launched starting in 2027, with a deadline of April 1st for identification. Carney emphasized that the success of the pipeline hinges on securing a private sector proponent to lead the project.