The oil pipeline feud testing Canada's global ambitions
As Canada looks to untangle itself economically from the US, the country's landlocked oil patch is eyeing new customers in Asia through a pipeline to the Pacific. Not everyone is on board.
The oil-rich province of Alberta has had one demand for Prime Minister Mark Carney: Help us build an oil pipeline — and fast.
It's no small task — in fact, some argue it has become near-impossible to build a pipeline in Canada because of laws designed to bolster environmental protections. Three oil pipelines have died on the vine in the past decade over fierce opposition.
But Alberta Premier Danielle Smith is not deterred. Her conservative government has taken the unusual step of drafting its own proposal for a pipeline from the Alberta oil sands to British Columbia's northern Pacific coast, aimed at reaching Asian markets. Still in the early stages, Smith hopes that by doing the groundwork a private company will eventually take over and build it.
Neighbouring British Columbia, however, is firmly against it. Premier David Eby, with the left-leaning NDP, has dismissed Smith's plan as fictional and political, arguing no company wants the burden of taking it on. He also accused Smith of jeopardising his own province's ambitions to expand liquified natural gas (LNG) exports to Asia. Smith in turn, has called him un-Canadian.
The feud between the Western provinces comes at a critical time. Canada is trying to wean itself off its economic dependence on the US amid President Donald Trump's tariffs, and Carney has signalled his desire to double non-US exports in the next decade.
That includes positioning Canada as a global energy superpower. Almost all of its energy exports, including crude oil, are currently sold to the US.
On Thursday, Carney unveiled new nation-building projects he says are key to Canada's growth. The list did not include a pipeline, but does include critical minerals mines and an LNG project in BC.
With Canada home to one of the world's largest oil reserves, Carney is now facing questions from Albertans over whether he can achieve his goals without first solving the internal rifts.
Carney has avoided siding with either province but has signalled his openness to a pipeline if Alberta can commit to also developing its carbon capture and storage programme. He said discussions are going well.
In a statement to BBC, Smith's office said it is working to address Premier Eby's concerns. It also expects Carney's government to support their project.
The disagreement between BC and Alberta is part of a longstanding clash that successive federal governments have struggled to smooth over. Alberta's main export is crude petroleum, while British Columbia is historically home to Canada's environmental movement.
There are real grounds for a dispute; the lion's share of the gains accrue to Alberta while the lion's share of generational risks occur in BC. Indigenous sovereignty and environmental concerns are still significant factors, as Canada has pledged to halve its greenhouse emissions by 2035.
The opposition appears to already be taking shape. Our communities will not be collateral for private profit, said Chief Na'Moks of the Wet'suwet'en First Nation. This is colonial violence masked as 'economic development,' and the world is watching.\p>
