The Pipeline Tensions Reshaping Canada's Energy Landscape

Mon Nov 17 2025 12:39:19 GMT+0200 (Eastern European Standard Time)

As Canada seeks to diversify its economic relations and reduce dependence on the U.S., a contentious feud over a proposed oil pipeline between Alberta and British Columbia reveals deep-seated political and environmental divides.

Alberta's ambition to build a pipeline to the Pacific for Asian markets faces strong opposition from British Columbia. While Alberta's leadership pushes for economic expansion despite environmental concerns, tensions with British Columbia highlight the ongoing divide in Canadian energy politics. Premier Eby rejects Alberta's plans as unrealistic, emphasizing environmental protection, while Premier Smith accuses him of hindering potential economic benefits. Amid plans to position Canada as a global energy power, these regional disputes pose significant challenges for unity and growth.

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.

It is the perennial problem, said Heather Exner-Pirot, director of natural resources, energy and the environment at the MacDonald-Laurier Institute think tank, and who is based in Calgary, Alberta.

It is unfortunately the main wedge issue in Canadian politics it seems like, and trust me when I say no one in Alberta wishes that their oil was the wedge issue in this country.

Asked about the divides on Thursday, Carney said the federal government and the provinces need to talk to each other.

But indigenous sovereignty and environmental concerns remain significant factors. Canada has pledged to halve its greenhouse gas emissions by 2035 and has dealt with a recent spate of severe climate impacts.

Keith Brooks, director of programmes at Environmental Defence Canada, expressed concern over rising opposition and potential backlash against any new pipeline proposal, emphasizing its long-term implications and the urgent need for immediate economic solutions.