Doug Ford and Danielle Smith held a joint press conference yesterday to announce a proposal for a northern pipeline route from Alberta to Sarnia, entirely through Canadian territory. Currently Alberta oil transits to Sarnia through the US because it’s a much shorter and flatter route, and that network is working just fine. Yes, a northern route might be more secure from American threats, but I will reiterate—a Canadian route is much longer, and over much rougher terrain, and is unlikely to find private sector proponents because they have no desire to strand the current pipeline network’s assets.
This sounds an awful lot to me like wishful thinking. There’s no timeline, there’s no price tag, there’s no agreement with Manitoba to go through that province—it’s a line on a map that rests on the wishful thinking that the oil market is going to keep growing in perpetuity. Ford keeps talking about how great it would be if the pipeline could go all the way to the Irving refinery in New Brunswick, but that’s never going to happen because Irving has no interest in paying a premium for Alberta oil when they can get imports for cheaper. (On a similar note, hopes to ship oil or LNG out of the Port of Churchill is also fantasy, because it’s only open for three months out of the year, and if they think that they need icebreakers the rest of the year, well, that’s one hell of a government subsidy).
Meanwhile, Smith going on about how the plan is to build this out now and decarbonise later is also ridiculous. There is a supply glut in the global oil market already (and prices will fall precipitously once the Strait of Hormuz issue is resolved, which it will be). Alberta increasing production to fill all of these pipelines is not going to bring plenty of more dollars, because adding supply to a supply glut further lowers the prices they get. That’s the reason why so much investment dried up after the price crash in 2014. It’s not coming back. This is just fantasy.
Danielle And Doug Ford Are Making A Beautiful Pipeline Togetheryoutu.be/BbOvIjvbMMw
— Clare Blackwood (@clareblackwood.bsky.social) 2026-07-06T19:40:58.929Z
My Latest:
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