Canada's New Pipeline Announcements are Exciting, But There’s No Time to Slow Down

Canada's New Pipeline Announcements are Exciting, But There’s No Time to Slow Down

OP-ED - On New Pipelines, Let's Not Forget the Past - COVER 2

A new wave of pipeline proposals suggests that Canada is ready to turn the corner and enter a new era of economic prosperity.

Recent announcements for three new pipelines from Alberta – one to British Columbia, another to Wyoming, and a third to Ontario – all point to a renewed understanding across the country that trade infrastructure matters, diversifying our markets is critical, and Canada’s economic future depends in part on our willingness to get the job done.

This is all welcome news.

It’s no secret that for years Canada has struggled to get new pipelines built, despite being among the most economically impactful major projects we can do as a nation. As shown by the Trans Mountain Expansion, they do more than pull their own weight when it comes to strengthening our economy, improving our competitiveness, supporting workers and communities, and reinforcing Canada’s role as a reliable energy supplier for our trading partners abroad.

In other words, new pipelines are a win for Canadians across the board.

Socio-Economic Impact of New Oil Pipelines

Nobody knows how long the world needs oil and gas, but as long as it does, it should be Canadian, says Prime Minister Mark Carney

According to a recent report by ATB Financial and Studio.Energy, adding 1.5 million barrels per day of new oil pipeline export capacity could add an average of $31.4 billion to Canada’s real GDP annually, support an average of 112,000 additional jobs, and attract well over $100 billion in investment just to fill those pipelines between 2027 and 2035.

These pipelines would also benefit the whole country. The federal government says that a new West Coast pipeline alone would create 140,000 direct and indirect jobs during the peak of construction, and another 50,000 during operations. Fifteen per cent of all jobs created by the project would be outside of Alberta and British Columbia, likely accounted for by manufacturers and other parts of the supply chain that provide the oil and natural gas sector with the goods and services it needs.

Talk about a nation-building opportunity.

A stronger oil and natural gas industry means more income for Canadian workers, more business for suppliers, and more taxes and royalties for our governments that can help fund the public services Canadians rely on every day.  Healthcare, education, infrastructure and community programs do not pay for themselves, and a more productive economy helps underpin the quality of life we all want to protect and improve.

Let History Be a Lesson for Canadians

Canada cannot lose another decade of inaction on pipelines, says Premier Danielle Smith

And while there is much cause for celebration in these new pipeline announcements, not for a second should we forget the lessons of the past. Northern Gateway and Energy East were sorely missed opportunities for Canada.

Even with new momentum and pipeline proposals on the table, we cannot assume the success of these three newly announced projects is guaranteed.

Canadians should also be realistic about what comes next.

Opposition to Canadian oil and gas development has not faded  in fact, with these announcements, it is only intensifying. Critics remain determined to target our job-creating, prosperity-generating resource sectors and will continue doing everything they possibly can to obstruct and delay all pipelines, including any others that could come in the years ahead. Major project proposals will face stiff organized opposition from groups both in the courts and on the street.

Now-defunct projects like Northern Gateway and Energy East show that delays have real costs too: lost capital investment, weaker export capacity, less diversified markets, reduced public revenues for our social programs, and fewer opportunities for Canadian workers and businesses. Never forget that the Trans Mountain Expansion likely would have never made it across the finish line if it weren't bought by the federal government.

As Canadians, we should be able to rely on private investors to get the job done  but today, continued regulatory uncertainty and stiff competition from other jurisdictions have made that nearly impossible for new projects.

If Canada truly believes that we're to become the global energy superpower that our elected leaders have prescribed, then the answer is to ensure there are clear project timelines, meaningful consultations with all parties involved, and that the rule of law is upheld every step of the way. It also means getting rid of self-imposed regulatory roadblocks that have hindered our resource potential for more than a decade.

Pipeline supporters in Canada cannot assume the economic case will speak for itself we have to make this case clearly and consistently.

Our work is just getting started.

Continuing to Support Energy Development in Canada

It's Time for Canada to defend our world-class energy sector, said Premier Scott Moe back in 2019

If we want major new projects to proceed, Canadians who recognize the importance of developing our natural resources need to keep engaging, speaking up, and supporting the critical infrastructure required to accomplish our economic goals.

As Saskatchewan Premier Scott Moe said in 2019:

“It is time for Canadians to stand up and defend our world-class, wealth-generating, sustainable energy sector.”

His words are as true today as ever.

Canada has the resources. We have the expertise. We have the opportunity. Now we need confidence and to make sure we never slow down in our advocacy to get big things built in this country once again.

Let’s not repeat the same mistakes of the past. We need to be louder, more outspoken, and determined than ever before. Our economic future – and that of our children and grandchildren – depends on it.