Canada's Pipeline Power Struggle: Alberta vs. British Columbia

Mon Nov 17 2025 05:37:02 GMT+0200 (Eastern European Standard Time)

A disagreement between Alberta and British Columbia over a proposed oil pipeline highlights tensions in Canada's energy strategy as the country aims to reduce its economic reliance on the U.S. and expand its global oil exports.

As Canada attempts to diversify its oil markets amid a fraught economic relationship with the U.S., a proposed pipeline from Alberta to British Columbia is fuelling interprovincial conflict. Alberta Premier Danielle Smith is pushing for the project to access Asian markets, but her counterpart in B.C., Premier David Eby, strongly opposes it, citing environmental concerns. This ongoing feud raises larger questions about Canada's energy future and its internal divisions that could hinder achieving its goals of becoming an energy superpower.

As Canada looks to untangle itself economically from the U.S., 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 due to 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 of the left-leaning NDP has called Smith's plan “fictional” and “political,” arguing no company wants the burden of taking it on. He has also accused Smith of jeopardizing his province's ambitions to expand liquefied natural gas (LNG) exports to Asia.

The feud between the provinces comes at a crucial time. Canada is trying to reduce its economic dependence on the U.S., especially amidst President Donald Trump's tariffs, and Carney has signaled his desire to double non-U.S. exports in the next decade.

This includes positioning Canada as a global energy superpower. Almost all of its energy exports are currently sold to the U.S.

Recently, Carney unveiled new nation-building projects he says are pivotal for Canada's growth. The list does not include a pipeline but features critical mineral mines and an LNG project in B.C.

With Canada holding vast oil reserves, Carney faces questions from Albertans over achieving his goals amidst these internal rifts.

According to Heather Exner-Pirot, an energy expert with the MacDonald-Laurier Institute, the pipeline dispute represents a significant wedge issue in Canadian politics, with many Albertans wishing their oil was not the focal point of contention.

Carney stated the need for cooperation between federal and provincial governments, indicating an openness to building a pipeline if Alberta commits to developing its carbon capture and storage program. Discussions, he said, are going well.\

Meanwhile, skepticism exists about the practicality of Alberta’s proposal, with environmental activists already organizing against new pipelines, claiming that such initiatives face significant legal challenges from First Nations communities along their proposed routes.

In summary, the conflict over the pipeline reflects broader economic, environmental, and political issues in Canada, highlighting the complex dynamics at play as the country seeks to navigate its energy future.