Will Canada actually see new oil pipelines? Lorne Gunter weighs in
Edmonton Sun columnist Lorne Gunter tells Ezra Levant how Alberta's Northern Shield and West Coast pipelines must overcome costly regulations, activist lawsuits, and federal foot-dragging to succeed.
On last night's episode of The Ezra Levant Show, Edmonton Sun columnist Lorne Gunter discussed why both the proposed Northern Shield pipeline and Alberta-to-West Coast pipeline risk being stalled by court challenges, green opposition, and bureaucratic delays.
Ontario Premier Doug Ford announced the proposed Northern Shield Energy Corridor alongside Danielle Smith earlier this week. The project would encompass a 3,300 km oil pipeline from Hardisty, Alberta, to Sarnia, Ontario.
Gunter cast doubt on the chances that the pipeline from Alberta to Ontario actually gets built. "Do I think it's going to get built between Alberta and Ontario? I don't know. I, like you, think that an awful lot of the oil company CEOs are going to look at this and say this doesn't make any economic sense," he said.
"When you take a look at the pre-conditions Carney is putting on the federal pipeline to the West Coast, and one of them is this Pathways Carbon Capture utilization and storage requirement. That could cost oil companies up to $30 billion, which is about the same price as the pipeline," Gunter continued.
"Well if you're going to have to charge double for a pipeline, you're not going to get it built. Nobody's going to say yes, they're probably not going to say yes to $30 billion. My concern there is we're going to end up with another Trans Mountain, and it's a government-owned pipeline, we're going to see the government of Alberta use the Heritage Fund to pay for another pipeline and then we're all going to claim victory," he added.
The Northern Shield proposal and Alberta’s West Coast pipeline projects both require federal regulatory approval, environmental impact assessments, and Indigenous consultations before any construction can proceed. A detailed feasibility study for the Northern Shield Energy Corridor is expected to be completed by the end of 2026.
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