Canada’s initial list of major nation-building projects has some great projects on it, including LNG expansion, but let’s be absolutely clear about the need for new oil pipelines as well.
At the end of the day, if Canadians are serious about strengthening our economy, diversifying our trading partners and maximizing the value of our resources, new pipelines are also a must.
Prime Minister Mark Carney has repeatedly stated that Canada must become an energy superpower and diversify its trading partners.
“We cannot control what other nations do,” Carney said in a recent press release.
“We can control what we give ourselves – what we build for ourselves. Canada is building the strongest economy in the G7, one that is less reliant on foreign powers and more resilient in the face of global shocks.”
There’s no way to do either of these things without also building new pipelines.
Canada’s largest export by far is oil and gas, and the reality is that any new pipeline would have the most profound impact on the Canadian economy. Alberta Premier Danielle Smith highlighted back in June that a new million-barrel-per-day pipeline, at today’s prices, would equate to $20 billion of value every year for Canadians.
The Trans Mountain Expansion (TMX) is an excellent example of the economic benefits of getting more of our oil exports to global customers and other continents. The project reduced the price discount on Western Canadian Select, which boosted Canadian revenues by nearly $13 billion, and added billions more to provincial and federal coffers. It has also enabled us to reach new markets, with Japan, South Korea, Brunei, India and others purchasing shipments from TMX over the past year.
Global demand for oil and gas continues to grow, and every year the world must produce up to 15 million barrels a day of new production to replace existing production that is depleting, according to one recent industry projection.
Future energy demand in Asia is expected to be the largest source of global growth through 2050, driven by rapid economic expansion, industrialization and growing populations. Meeting Asia’s demand for oil and gas is an immense economic opportunity that Canadians cannot afford to miss.
If we don’t meet that demand, other countries will.
Like B.C. Premier David Eby said, “We’re not in the business of turning away investment in British Columbia. Especially investment that assists us in diversifying our customers for our resources and allows us to get a higher price for those resources,” when asked about the Prince Rupert Gas Transmission pipeline by the CBC.
“If you’re not buying oil and gas from Canada and British Columbia, the alternative is Venezuela,” Eby also said earlier this year.
We know that Northern Gateway had a lot of Indigenous support with 80 per cent of First Nations supporting the project. We also know that since the Energy East pipeline was cancelled, global oil demand has grown by several million barrels per day, and Canada has continued to import oil from other countries.
Let’s be real. We need to plan today for our future economic security. That means building pipelines, power lines, ports, railways and roads, as well as all critical infrastructure that will diversify trade and ensure a prosperous future for our families and communities.
Cody Battershill is a Calgary realtor and founder/spokesperson for CanadaAction.ca, a volunteer-built group that champions Canadian energy development and the economic and security benefits that come with it.
