GREEN: Central Canadian opinion-shapers misinformed about pipelines

Contents of the article

In a recent CPAC Prime Time PoliticsThree bureau chiefs from three major Canadian newspapers discussed the conflict between Alberta Premier Danielle Smith and Premier Mark Carney. The Smith government plans to submit a proposal to Ottawa to build an oil pipeline from Alberta to the northern coast of British Columbia. The episode highlighted the deep disconnect between these mainstream journalists and the realities of Canadian energy policy.

Contents of the article

The first one out of the gate Globe and mailThe magazine's Robert Fife made the (false) argument that we already have the Trans Mountain Pipeline Expansion (TMX) running at only 70% capacity, so we don't need more pipelines. This version of the no-market argument misunderstands both the economics of operating pipelines and the reality of how much oil sands production can increase to supply foreign markets if—and only if—there is a way to get it there.

Contents of the article

Recommended Videos

Contents of the article

Bandwidth Issues in TMX

In fact, since the TMX expansion came online, about 80% of the system's capacity has been reserved for long-term contracts by dedicated shippers, with the rest available on a monthly basis to spot shippers, who pay higher rates, largely due to government-mandated construction costs. From June 2024 to June 2025, allocated capacity was fully utilized each month, averaging 99%. Simply put, TMX is essentially fully subscribed and uses a high percentage of its physical capacity.

Contents of the article

Contents of the article

And the idea that we don't need additional capacity is also stupid. According to S&P Global, Canadian oil sands production will reach a record annual average of 3.5 million barrels per day (bpd) and could top 3.9 million bpd by 2030 (that's 500,000 bpd higher than 2024). Without pipeline expansion, this growth may not occur. The Alberta government, which is already coordinating with pipeline companies such as Enbridge, hopes to see oil sands production double in the coming years.

Then Mia Rabson, deputy bureau chief for The Canadian Press in Ottawa, suggested Smith's proposal was unviable because it came from the government rather than the private sector. What Rabson didn't say was that it would be foolish for any company to prepare a very expensive project proposal in light of the current huge regulatory hurdles (banning tankers off the British Columbia coast, capping oil and gas emissions, etc.). Indeed, the value of the proposals could run into the billions.

Contents of the article

In the Quebec bubble

Finally, Joel-Denis Bellavance, Ottawa Bureau Chief Pressopined that a year ago, “building a pipeline was not part of the national conversation.” Really? On what planet? How thick is the bubble around Quebec? Is this some kind of bulletproof plexiglass? This is the man helping shape Quebec's opinion on pipelines in Western Canada, and if we take him at his word, he doesn't know that pipelines and energy infrastructure have been on the agenda for quite some time.

If these are the custodians of Canadian news in central Canada, it is no wonder that citizens seem so ignorant of the need to build new pipelines, transport Alberta's oil and gas to foreign markets outside the US, strengthen Canada's economy and employ people in many provinces who do not work in the media.

Kenneth Green is a senior fellow at the Fraser Institute.

Contents of the article