5 Reasons Why Canada Needs a New West Coast Oil Pipeline

Canada is once again talking seriously about building a new oil pipeline to the Pacific Coast. That is welcome news, because for too long Canada has faced a simple problem: we produce world-class oil and natural gas resources, but we have not had enough infrastructure to move them efficiently to global markets beyond the United States.

The proposed new West Coast oil pipeline announced by Canada and Alberta would carry 1 million barrels per day to the Robert Banks Terminal in Delta, British Columbia. If built, it would do much more than move Canada’s most important and valuable export. It would create jobs, support Indigenous economic reconciliation, generate government revenues, strengthen Canada’s export position, and help our country capture more value from every barrel it produces.

Just as important, Canadians don’t necessarily have to guess what these benefits might look like. We already have a recent example in the Trans Mountain Expansion (TMX). This project, completed in mid-2024, shows that when Canada builds the pipeline capacity it needs, the economic gains are real, measurable, and significant, and that all Canadians benefit.

Here are five reasons Canada needs a new West Coast oil pipeline. For more background, see also:

• Trans Mountain’s Economic Impact a Good Lesson for Canadians
• G7 Leaders Call for More Canadian Oil & Gas on Global Markets
• South Korea Signs Up for More Canadian Oil & Natural Gas

#1 - It would generate economic opportunities for Canadians and Indigenous Peoples

A new 1-million-barrel-per-day West Coast pipeline could be a major driver of jobs and business activity across Canada. The Government of Canada estimates employment impacts of up to 140,000 direct and indirect jobs at the height of construction. Of those, about 70,000 jobs would be in British Columbia and 45,000 in Alberta ^[1].

Once construction ends and the pipeline enters operation, annual employment impacts are estimated to average about 50,000 jobs, supporting long-term direct and indirect employment across a wide range of industries.

The job benefits wouldn’t just be felt in Alberta or BC, either. Ottawa says about 15% of all jobs supported by the project would be created elsewhere in Canada.

There’s also a strong Indigenous economic case for the new West Coast pipeline development, with the federal government saying its proposal includes an Indigenous equity purchase right as well as opportunities tied to contracting, employment, training, and business development.

We need to look no further than the Trans Mountain Expansion (TMX) to see the positive economic impact new pipelines can have on First Nations. Between 2016 and 2024, for example, TMX spent $6 billion with Indigenous businesses, a powerful example of how resource infrastructure can support real procurement, real partnerships, and real economic opportunity ^[2].

#2 - It would generate critically important taxes and royalties for Canadian governments

A new West Coast pipeline would not only create jobs and business opportunities but also help governments collect more revenue to fund the public services Canadians depend on. That includes healthcare, education, infrastructure, and social programs that support communities across the country.

According to an analysis by Eric Nuttall of Ninepoint Partners, a single new 1-million-barrel-per-day oil pipeline could generate about $5 billion in annual royalties, roughly the amount required to hire about 13,000 doctors who could provide healthcare to nearly 17 million Canadians ^[3].

If we look again at TMX, it reported that in 2025 it returned more than $1.7 billion to Canada through interest payments, dividends, and fees, while operating at an average annual utilization rate of just 86% ^[4]. This is a direct financial return tied to pipeline infrastructure that many critics argued would not deliver meaningful benefits.

The broader impacts are even more striking. TMX generated about $13.6 billion in additional revenue in its first year of expanded operations, including roughly $2 billion in additional federal tax revenue and about $5.4 billion in additional revenue for Alberta ^[6] – revenues that help pay for schools, hospitals, roads, public-sector jobs, and essential services.

In other words, pipelines do not just benefit the West; they also strengthen the revenue base that supports everyday life in Canada, no matter which province or territory Canadians live in.

#3 - It would play a big role in helping strengthen and diversify Canada’s economy

Canada is stronger when it has more than one major customer for its natural resources, including oil. For decades, we have depended overwhelmingly on the United States for the majority of our trade, a dependence that has limited Canada’s leverage and reduced its ability to compete fully in global energy markets.

TMX has already started to change that. One of the most important benefits of the expansion has been improved access to the Pacific Ocean, which has helped Canadian oil reach more non-U.S. buyers. As of June 2025, non-U.S. exports rose to about 9% of total export volume, more than triple their previous level, with much of that oil going to Asian customers ^[6]. Trans Mountain also reported that 67% of vessels loaded at Westridge Marine Terminal in 2025 were headed to Asia ^[4].

The construction side of TMX also shows the scale of what a major pipeline project can contribute to the broader economy. Between 2018 and 2023, TMX construction is estimated to have delivered the following economic benefits ^[5]:

·        Generated $52.8 billion in total economic activity

·        Added $26.3 billion to Canada’s GDP

·        Paid $11 billion in wages to workers

·        Created 67,423 full-time equivalent jobs

A new 1-million-barrel-per-day West Coast pipeline would build on that momentum. It would give Canada more export capacity to serve customers across the Pacific, including major economies that continue to import large amounts of oil. It would make Canada’s economy more diversified, more competitive, and less exposed to a single buyer, helping build a stronger, more resilient Canadian economy.

#4 - It would help Canada maximize the value of its oil resources

One of the biggest reasons Canada needs more pipeline capacity to the coast is simple: better access to global markets helps improve the price Canadian oil receives, as TMX has already shown.

Western Canada Select (WCS) trades below West Texas Intermediate (WTI) for several reasons, including quality differences, high transportation costs, and limited direct access to coastal terminals.

TMX has helped reduce that price differential, creating huge economic benefits for Canadians. A January 2025 study found that the project helped reduce the differential by about USD $8 per barrel by the end of 2024, creating about CAD $10 billion in extra revenues for Canadian companies ^[7] – which means more taxes and royalties to support our social programs and quality of life. Another analysis estimated that the narrower discount helped generate about $12.6 billion in additional oil revenues in the first year after TMX entered expanded service ^[6].

A new West Coast pipeline would help Canada capture more value from the energy resources it already exports by improving market access and enabling more competitive pricing.

#5 - It would add needed takeaway capacity as Canadian oil production grows

Canada’s oil production is expected to continue growing in the coming years, and new pipeline capacity would provide a critical outlet to help the energy sector expand while strengthening the Canadian economy.

A March 2026 ATB Financial/Studio.Energy study found that building and filling incremental oil pipeline capacity of up to 1.5 million barrels per day could add an average of $31.4 billion to Canada’s real GDP and boost employment by 112,000 jobs between 2027 and 2035 ^[8]. At the same time, ensuring there is sufficient oil production to fill these pipelines would require more than $100 billion in additional upstream investment ^[8].

A new West Coast oil pipeline with 1 million barrels per day of capacity could deliver a significant share of those benefits, helping support the next wave of Canadian production growth and attract investment capital back into Canada’s job-creating, prosperity-generating energy sector.

The lesson from TMX is that pipeline capacity matters before constraints become severe. Once capacity bottlenecks return, the consequences include further price discounts and lost revenues for all Canadians. Building ahead of the problem helps Canada stay competitive and keeps the value of our oil from being eroded by infrastructure shortages.

At the end of the day, the additional takeaway capacity provided by a new West Coast oil pipeline means a stronger economy, better-paying jobs, more government revenues, and diversified access to global markets.

Canada Needs New Pipelines

Canada has already seen what a major West Coast pipeline can do. TMX helped create jobs, expand export access, narrow the oil discount, and generate billions in additional revenue for governments and the economy.

A new West Coast oil pipeline would build on that success. It would create economic opportunities for Canadians and Indigenous Peoples, strengthen public finances, diversify exports, improve the value of Canadian oil, and add the capacity needed for future growth.

The bottom line is clear. If Canada wants to be stronger, more competitive, and better positioned on the global stage, it needs to continue building the infrastructure that enables Canadian-made natural resources to reach the world.

As long as the world needs oil and natural gas, it should be Canadian. pic.twitter.com/ZCbiCKKGKu

— Canada Action (@CanadaAction) July 7, 2026

SOURCES:

_{1 - https://www.canada.ca/en/one-canadian-economy/news/2026/07/strengthening-our-sovereignty-diversifying-our-exports-reducing-emissions-and-building-a-stronger-economy.html}

_{2 - https://www.canadianenergycentre.ca/graphic-the-trans-mountain-expansion-spent-6-billion-with-indigenous-businesses-from-2016-2024/}

_{3 - https://www.canadaaction.ca/new-oil-pipeline-could-fund-canadian-doctors-healthcare-nuttall}

_{4 - https://www.transmountain.com/news/trans-mountain-reports-q4-2025-and-full-year-2025-results}

_{5 - https://www.bcbc.com/building-prosperity/transmountain}

_{6 - https://albertacentral.com/intelligence-centre/economic-news/year-one-of-tmx-increased-export-diversification-disappearing-oil-discount-and-c13bn-in-extra-revenues/}

_{7 - https://www.cbc.ca/news/canada/calgary/trans-mountain-pipeline-expansion-tmx-revenues-st-arnaud-1.7434823}

_{8 - https://www.atb.com/company/news/releases/the-gdp-payoff-of-additional-oil-pipeline-capacity/}