A former Alberta energy minister expressed skepticism about the feasibility of a proposed bitumen pipeline to the northwest B.C. coast if solely relying on the private sector for construction. Sonya Savage stated on CBC’s West of Centre podcast that the likelihood of a private sector proponent for the project is close to zero at this time.
Premier Danielle Smith urged Ottawa to expedite approval for the pipeline, citing the U.S. involvement in Venezuela and the potential for increased oil development in that country. Smith emphasized the need for timely regulatory approvals to prevent market share loss and maintain Canada’s competitive energy position.
Smith’s letter to Prime Minister Mark Carney called for swift approval of Alberta’s pipeline application by fall and completion of regulatory reviews for nation-building projects within six months. This timeline contrasts with the two-year review goal set by Carney’s major projects office, established last year.
In a memorandum of understanding signed last November between Carney and Smith, it was agreed that while Alberta would lead the pipeline project, it would be privately financed and constructed. Industry experts suggested potential financial commitments from Alberta or Ottawa to cover unforeseen costs beyond the company’s control.
Savage, drawing on her experience with pipeline associations, highlighted past instances where federal government intervention was vital for major energy projects in Canada’s history. Despite the project being labeled as “nation-building,” not all Canadian leaders share the sentiment, with B.C. Premier David Eby suggesting investing in an oil refinery instead of the pipeline.
The debate over the pipeline’s economic viability continues, with Savage dismissing the feasibility of solely focusing on refining without addressing transportation to larger markets. Carney’s office declined immediate comment on Smith’s push for faster project approvals, emphasizing Canada’s oil competitiveness based on low-risk and low-cost factors.
The upheaval in Venezuela impacted Canadian energy stocks, leading to a downward trend in oil prices since last year. Despite concerns about market dynamics, Carney remains optimistic about the competitiveness of Canadian oil in the global energy landscape.
