Here’s a bold statement: Canada’s ambitious plan for a privately developed bitumen pipeline to the northwest B.C. coast might never see the light of day without government intervention. And this is the part most people miss: former Alberta Energy Minister Sonya Savage warns that the chances of the private sector taking on this project alone are virtually ‘zero.’ But why does this matter? Let’s dive in.
In the wake of the U.S.’s recent actions in Venezuela, Alberta Premier Danielle Smith is urging Ottawa to fast-track approvals for the pipeline. She argues that increased oil development in Venezuela—a country with heavy oil exports similar to Alberta’s oilsands—poses a direct threat to Canada’s energy sector. Smith even penned a letter to Prime Minister Mark Carney, demanding federal approval by fall 2026. But here’s where it gets controversial: while Alberta and Ottawa label this project as ‘nation-building,’ not everyone is on board. B.C. Premier David Eby suggests that if public funds are on the table, Canada should prioritize building a new oil refinery instead. Is he onto something, or is this just a distraction? We’ll explore both sides.
Savage, now a senior executive with Enbridge and the Canadian Energy Pipeline Association, points out that government support isn’t a new concept. Historical projects like the TransCanada mainline gas line in the 1950s and Enbridge’s Line 9 in the 1970s relied on federal backstops. Yet, Eby counters that a refinery would better serve Canadians by reducing reliance on foreign refineries. Savage dismisses this idea as economically nonsensical, arguing that refined oil would still need a pipeline to reach global markets. Is Eby’s proposal a viable alternative, or is he missing the bigger picture?
Adding to the complexity, industry experts suggest that pipeline companies might demand financial guarantees from Alberta or Ottawa to cover potential cost overruns. Meanwhile, Carney’s office remains tight-lipped on Smith’s calls for quicker approvals, though the Prime Minister recently assured reporters in Paris that Canadian oil remains competitive due to its low-risk, low-cost nature. Yet, Canadian energy stocks have taken a hit amid the Venezuela upheaval, and oil prices continue their downward trend.
Here’s the burning question: Can Canada afford to delay this pipeline, or is government intervention the only way forward? And should public funds be used for a refinery instead? Let us know your thoughts in the comments—this debate is far from over.
