Ottawa and Alberta – Premier Smith’s vision and Alberta’s path forward
(Part Three)
There are viable and attractive major energy projects to expand the capacity of Alberta oil and gas production and, given the country’s current economic challenges, there should be no conditional response to those projects from Ottawa. Central Canadians need to support westerners’ vision and drive to develop a variety of energy projects, which will not only strengthen the economy in the western provinces but will raise the Canadian standard of living and fortify the country’s future prosperity.
This is part three of the “Ottawa and Alberta” series; parts one and two can be read here: “Framing the “energy superpower” discussion” and “PM Carney’s dubious plan for major project development.”
With the re-election of Donald Trump in the U.S. and re-election of a Liberal government in Ottawa, Alberta Premier Danielle Smith has passionately taken up the mission to advance the Canadian oil and gas industry with a zealous commitment that has her seemingly everywhere, all at once. The premier is forcibly presenting an articulate argument for the development of Alberta energy projects with elected representatives and trade officials in Washington D.C., at every opportunity with her premier colleagues and tirelessly with industry leaders. In the past six months, Smith is Canadian energy personified.
Since the election of President Trump, there has been no one person more active than Danielle Smith in making the case for a secure North American energy supply, fueled by Albertan oil and gas. Even as the Canada-US trade talks recently turned sour and the American administration doubled its tariffs on Canadian steel and aluminum imports, Smith was at the Canadian embassy in Washington signaling success with her energy talks. She stated in a Canadian Press interview, “We’ve managed to make a breakthrough on the discussion about energy dominance and how Canada can lend itself to that, whether its our oil, our gas, critical minerals, uranium from Saskatchewan, electricity from many of our provinces.” She also posted on X, “Alberta’s relationship with the United States is evolving, and we need bold action to keep pace. That’s why we’re launching the New North America Initiative and partnering with top researchers to better understand and respond to U.S. policy shifts that impact our province...”
In late June when world leaders were jetting into Banff to attend the G7 meetings, Premier Smith was on the tarmac at the Calgary airport to greet them personally. It was another strategic opportunity to press her arguments. She would state in a CBC interview from the airport, “… we’re making sure they know Alberta has the energy resources, and solutions the world needs. From Japan to Korea to the U.S., we’ve been building relationships and promoting our propane, LNG and bitumen exports. Energy security starts here, right now, at the G7.”
Ipsos released a global public opinion survey in which it found that Canada is the top preferred oil supplier for G7 nations. When asked to rank the world’s top oil producers, one in two (49 per cent) of the respondents in the G7 countries named Canada the top choice and one in seven (68 per cent) ranked Canada in the top three of preferred oil suppliers.
As she was courting world leaders, Smith took to a Calgary energy conference stage with Saskatchewan Premier Scott Moe to promote Canada as an energy superpower. She has a compelling vision to double Alberta’s industry production of oil and gas: “… our bold vision for the future. Alberta has the resources, the talent, and the ambition to double our output, expand our infrastructure, and meet the world’s demand for reliable, responsible energy. With strong partners and a clear purpose, we’re building the next chapter of Canadian energy leadership,” as she touted on X.
Just as she has with American and Canadian political counterparts, Smith has also been active making the necessary overtures to North American industry leaders, personally opening discussions with private sector pipeline builders. Always careful to leave private discussions private, she publicly remains bullish on the prospects of a new venture. When asked in a recent Bloomberg News interview when a pipeline proposal may be announced, she offered, “Probably weeks. If I’m right, then the proponent will come forward, and we’ll back them, and we’ll see whether or not the federal government will accept that.”
There are a number of viable options now being discussed for Canadian pipeline development from the province, some tied to new oil and gas facilities. There is talk of a new northern corridor to Grays Bay in Nunavut, a First Nations proposal for a Port Nelson, Manitoba terminal LNG facility to export to Europe, and the reconsideration of the abandoned project in the Saguenay, Quebec region that would see the development in Quebec of a new pipeline and an export terminal facility. There is also a rumoured proposal for a new Energy East project, that oil pipeline plan shelved in 2017 due to a burdensome regulatory process and political interference from both the Quebec and federal governments. Recall that Energy East was a Canadian megaproject that would move oil from Alberta and Saskatchewan to refineries in eastern Canada and an export terminal at St. John, New Brunswick.
The two most discussed major projects are the construction of new pipeline corridors from Alberta west to Prince Rupert, B.C., and east to Churchill, Manitoba. Premier Smith would like to see these projects combined, stretching across the four western provinces, “Where I think we'll have the most success right now is working on a corridor between Hudson Bay and a port at Prince Rupert.” Smith argues that this development will create tremendous investment and employment opportunities throughout Canada and it will ensure the country can live up to its energy superpower potential. The new western corridor would require the expansion of rail lines to boost freight capacity, building of new oil and gas pipelines, and the establishment of new port facilities to increase the country’s export capacity to Asian and European markets.
So, Smith’s vision and enthusiasm aside, let’s consider the prospects of the two major projects. Shortly after the First Ministers’ Conference in early June, Premier Smith was at an energy conference in Calgary where she announced that the province of Alberta has entered into talks with pipeline companies to explore a plan for a new energy corridor that would run from the province to the port of Prince Rupert. Of all the possible new major energy projects, she commented that the B.C. initiative is “the most credible and the most economic of all of the pipeline proposals the private sector would consider.”
Smith expressed the hope that a private sector proponent – either a consortium of companies or a single company – would take up the development of a pipeline that would pump one million barrels of crude per day to the west coast. The Premier pledged Alberta’s support in assisting the project through the federal government’s approval process – a new planning and regulatory process that PM Mark Carney had promised would take no more than two years for all new major infrastructure projects.
Premier Smith sees the new federal fast-track approval process making a difference in attracting companies to invest in the country, “We know that it’s a chicken-and-egg problem, that no one’s going to come forward with a project without some guarantee that it’s going to be approved.” So, it is full steam ahead for courting interest in this project that would take Alberta crude to west coast tidewater. It would be a game-changer according to Smith who factors a million-barrel-per-day pipeline “allows you $20 billion worth of revenue year after year after year for the lifetime of that project.”
One roadblock to the west coast initiative is the on-again-off-again opposition of BC Premier David Eby. Smith has been taking this in stride, trying to remain positive, “What I’ve heard them say recently is there’s no project – no project and no proponent. Well, that’s my job. There will be soon. We’re working very hard on being able to get industry players, private-sector players, to realize this time might be different.” However, as recently as last week, Eby expressed doubt that anything would materialize and he went further in stating that his government remains supportive of the federal west coast tanker ban that prohibits oil tankers in the protected area ports. “The challenge for me is that the conversation has been almost exclusively about a project that doesn't actually exist. There's no proponent; there's no money. I would prefer very much that we stay focused on what actually exists, what's ready to go through environmental assessment processes, or nearly.”
Currently there are two private firms that are rumoured to be interested, Calgary-based Enbridge, and rival pipeline company South Bow Corp. Enbridge was the company that walked away in 2016 from its Northern Gateway pipeline to the northern B.C. port of Kitimat. The federal government’s onerous approval process with that pipeline project left everyone frustrated and Enbridge CEO Greg Ebel has been vocal in stating that it would take a complete overhaul of the federal regulations for his company to revisit such a project. Last week, Enbridge issued a statement that it would also take “real provincial and federal legislative change” around climate policy, regulatory timeliness and Indigenous participation.
The second major western energy project that has promising potential is the shipping of oil and gas and minerals through the port of Churchill. That northern Manitoban city is the country’s only existing deep-water Arctic port and it has been getting increased national attention of late. The port facility is currently operated by the Arctic Gateway Group, which is comprised of investors from local governments, First Nations, grain producers and financial holding companies. Last year the port re-opened after a six-year closure and it began shipping products from grains to zinc concentrate. In February of this year the province of Manitoba invested $36.4 million in the city’s port and rail developments, and in March the federal government invested $175 million to improve the rail service from Churchill to southern Manitoba.
For an informative look at the history as well as present commentary of the port in Churchill, read Matthew Horwood’s article in The Epoch Times, “What’s the Potential for Canada’s Northern Port to Expand Trade Opportunities?”
At the First Ministers meeting, Churchill was being profiled by Manitoba Premier Wab Kinew and the PM suggested it as a likely inclusion on his list of major infrastructure projects. Premier Smith spoke highly of Churchill’s potential – not surprisingly as she has been an early champion of the port and the development of a corridor to the city. In fact, just weeks after becoming premier in the fall of 2022, Smith penned a letter to the prairie premiers in which she called for a commitment of western provinces to expand the shipping capacity of the port and rail service and northern arctic supply routes – including exporting oil and gas to global markets. Smith argued at the time that enhancing market access will ensure the country is “more competitive, increase our presence on a global stage, and strengthen Canada’ role in addressing food and energy shortages.”
Verily, Smith’s vision of a prosperous path forward for Albertans is, as a consequence, a prosperous future for Canadians. With the attractive prospects of laying pipeline to Port Rupert and to Churchill, Albertans’ expectations are sky high that there just may be a new era of development in the oil and gas industry. And with the passage of the One Canadian Economy Act C-5 legislation in Ottawa, PM Carney now has the means to force the matter on advancing major energy projects. Additionally, recent Angus Reid polling indicates there is a strong national consensus with four in five Canadians agreeing on the need for coast-to-coast oil and gas pipelines. All signs suggest the stars are aligned for Albertans, for Canadians.
Next article (part four): What is at stake should Ottawa frustrate Albertans’ pipeline projects
The article was published this morning in The Niagara Independent. The By George Journal version above includes additional text, quotes, and links to source media materials.
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