en.Wedoany.com Reported - The Canadian federal government and the province of Alberta have announced they will jointly advance a new crude oil pipeline project with a capacity of at least 1 million barrels per day. Prime Minister Mark Carney stated that Ottawa and Alberta will hold a meeting on Friday to finalize the construction plan for the pipeline, which aims to transport Alberta crude oil to new markets. Carney also confirmed that the federal government will reach a new industrial carbon pricing agreement with Alberta, a move intended to ease long-standing policy disagreements between the two sides.
As the country with the third-largest oil reserves in the world, Canada has repeatedly debated over the past decade whether to expand its crude oil export capacity. The current global oil market is experiencing sustained turmoil due to the war in Iran and the disruption of exports through the Strait of Hormuz in the Persian Gulf. Tightening Middle East crude supplies and rising prices have significantly increased the attractiveness of Canadian crude oil.
Earlier this month, several oil producers had already committed to supplying at least 400,000 barrels per day of crude oil to another proposed export pipeline system. That pipeline, jointly backed by South Bow Corp. and Bridger Pipeline, would connect Canada to the United States via Montana and Wyoming, with an initial capacity of 550,000 barrels per day, eventually expanding to over 1.1 million barrels per day.
Canada currently produces approximately 5.5 million barrels of crude oil per day, a figure expected to rise to 6.1 million barrels per day by 2030. Pipeline bottlenecks have persistently plagued the industry for years; whenever export capacity tightens, landlocked crude oil becomes stranded, putting downward pressure on Canadian crude prices. The expansion of the Trans Mountain pipeline has alleviated some pressure, but it is far from meeting demand. Enbridge is also advancing its own expansion, and the TMX pipeline may be expanded again. Now, Ottawa appears ready to further increase investment in export infrastructure.
The industrial carbon pricing agreement pushed by Carney indicates that the federal government has recognized that Canada cannot hinder energy infrastructure development while simultaneously aspiring to become an energy superpower.
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