British Columbia Premier David Eby is panicked. He’s panicked because the federal government is currently in talks with the provinces of Alberta and Saskatchewan about a path forward for a new pipeline to Canada’s west coast.
According to media reports, Eby only learned about the negotiations through press coverage — and he’s fired up.
Reporting from The Globe and Mail suggests that the federal government and Alberta Premier Danielle Smith could be just days away from announcing a memorandum of understanding on pipelines. The agreement could include changes to the industrial carbon tax and support for a new pipeline to the west coast — one that would require an exemption to the federal government’s tanker ban.
A tanker ban has been in place since 2019 and prohibits oil tankers carrying over 12,500 metric tonnes of crude or persistent oil from docking, loading, or unloading at ports on B.C.’s northern coast. Any realistic private-sector-funded project would require the federal government to waive this ban or repeal the legislation altogether.
Prime Minister Mark Carney could use his One Canadian Economy Act, passed in June, to override the tanker ban for this specific project.
Eby knows this, and that’s why he’s panicked. He has been the leading voice seeking to block the building of a new pipeline to B.C.’s northwest coast — a project Canada desperately needs in order to diversify its oil exports away from the United States.
Because Canada lacks adequate pipeline infrastructure, most of our oil is currently sent south of the border at a discounted price. It’s then refined in places like Texas and resold on international markets at a profit.
If Canada wants to diversify its economy away from U.S. dependence and increase exports to Asia — two goals Carney has clearly outlined — then a pipeline taking Alberta oil directly to Asian markets is a no-brainer.
But Carney is in a bind. He previously committed — contrary to Canada’s Constitution — to offer any province impacted by a given project a veto over that project. Meaning, if Eby doesn’t want to see a new pipeline bringing Alberta oil to B.C.’s northwest coast, his government has veto power.
Canada’s Constitution, however, clearly states that if a project crosses provincial boundaries, as this pipeline would, it falls solely within the jurisdiction of the federal government.
If Carney is willing to walk back his commitment to provincial vetoes, the memorandum reportedly in the works could mark a major turning point for Canada’s oil and gas sector — and for Canadians in general. But if the agreement requires buy-in from the B.C. government, then given Eby’s current stance, the project is likely dead on arrival.
So, how could Carney get out of the political box he’s put himself in? He could point to public opinion.
Polling shows that a majority of Canadians — including British Columbians — support a new pipeline to the northwest coast. According to a recent Angus Reid poll, 56 % of British Columbians are in favour. Carney could argue that the B.C. government’s position doesn’t reflect the will of the province, and that in this case, the veto should not apply.
Carney should do whatever it takes to undo his earlier promise and move this project forward. He keeps saying, “It’s time to build.” It’s high time to build a new pipeline — to reassert Canada’s economic independence and reinvigorate its future.
Originally published here