Alberta Premier Danielle Smith is finally getting a pipeline. But, after making concession after concession, this doesn’t feel like the pipeline win that Albertans and Canadians who support energy development have been longing for.
First of all, Smith agreed to jack up industrial carbon taxes in pursuit of a deal with Prime Minister Mark Carney, something she likely had to do to get a deal with the federal Liberals, but something that will in turn make life more expensive for Albertans.
Second, Smith also had to make concessions about the pipeline’s route. Initially, Smith had hoped to have a pipeline built to northern British Columbia and taken to Asian markets via tankers. But hours before Smith and Carney announced their pipeline deal at a press conference in Calgary, Carney announced with B.C. Premier David Eby that the federal tanker ban would remain in place, nixing a potential northern route. That meant that only a southern route would be feasible. A southern route will mean it will take days longer for oil to get to potential Asian markets, making the overall project less attractive.
Third, Smith has agreed to the Pathways carbon capture and storage project in order to gain Carney’s approval, which will cost billions of dollars. Some estimates have pegged its cost at $20 billion, to be borne by both energy companies and taxpayers. These are costs that other countries are not imposing on their energy companies or taxpayers in order to develop their natural resources, yet another step in making Canada less competitive.
