11/27/2025

 

Samuel Clifford 

Alberta Energy Accord

 

Prime Minister Mark Carney and Alberta Premier Danielle Smith have jointly agreed on a path forward for a new bitumen pipeline to the British Columbia Coast, which is the western boundary of Canada along the Pacific Ocean. The agreement pauses Alberta’s clean electricity rules and, in return, extends Alberta’s program that charges industries for their carbon emissions. It also says Carney’s government will look at changing the federal ban on oil tankers along the coast of British Columbia. The bill lays out how Ottawa, the Capital of Canada, will facilitate the construction of the pipeline and will carry near a million barrels of oil a day from Alberta’s oil patch to an export terminal located somewhere on the Pacific coast. The purpose of which is to help with the export process of oil to Asian markets.

 

Bitumen is a dense, sticky, highly viscous form of petroleum, often referred to as asphalt in North America. It can occur naturally in deposits like oil sands and pitch lakes, or be obtained as a residue from refining crude oil. Alberta sits atop one of the world's largest sedimentary basins in which bitumen is abundant.

 

Challenges For The Agreement

 

The agreement states that the pipeline will be privately funded and constructed and the intention is to have some indigenous co-ownership. Industry leaders warn that stricter carbon pricing and reliance on carbon capture may not be enough to attract private capital. Furthermore, Alberta’s exemption in climate policy due to this agreement is criticized as some view it as starting a precedent that could cause other regions to seek special treatment and therefore undermine national climate policy. Finally, the biggest criticism is that the construction of the pipeline could begin with or without British Columbia’s blessing, which raises interprovincial conflict. 

 

However, with all of these criticisms, advocates argue the pipeline is needed to strengthen Canada’s energy independence. Furthermore, the fact that it is privately funded and not constructed by federal spending will reduce taxpayer burden and signal confidence in market-led development. Concerning climate policy, the agreement commits Alberta to stricter industrial carbon pricing and billions toward the Pathways Alliance carbon capture project, which will advance climate technology while securing pipeline approval. 

 

United States Oil Market

 

The construction of this pipeline has a main purpose of reducing Canada’s reliance on the U.S. as its primary oil customer. This could potentially lower U.S. imports of Canadian crude and reshaping North American oil pricing dynamics. Therefore, the U.S. would have weaker bargaining power as they would not have the same market power over oil consumption from Canada as it does now. U.S. refiners may also face higher prices for Canadian crude, since Alberta producers would have alternative markets. Prime Minister Carney cited American tariffs as a driver for diversification.

 

Sources

 

CBC News. “Ottawa, Alberta Reach Energy Agreement That Includes New Pipeline and Carbon Capture Commitments.” CBC, 27 Nov. 2025, www.cbc.ca/news/politics/ottawa-alberta-energy-agreement-pipeline-9.6994715.

 

Politico. “Canada’s Carney and Alberta’s Smith Strike Pipeline Deal.” Politico, 27 Nov. 2025, www.politico.com/news/2025/11/27/pipeline-carney-alberta-canada-00670635.

 

The Deep Dive. “Alberta–Ottawa Pipeline Accord Nears Completion.” The Deep Dive, Nov. 2025, thedeepdive.ca/alberta-ottawa-pipeline-accord-nears/.

 

Global News. “Ottawa and Alberta Sign Historic Pipeline Deal: What’s in It?” Global News, 27 Nov. 2025, globalnews.ca/news/11546603/ottawa-alberta-pipeline-deal-what-is-in-it/.

 

Fraser Institute. “Alberta’s New Energy Agreement with Ottawa: Some Good for the Province, at a Very Steep Price.” Fraser Institute, 28 Nov. 2025, www.fraserinstitute.org/commentary/albertas-new-energy-agreement-ottawa-some-good-province-very-steep-price.

 

Prairie Sky Strategy. “Alberta and Ottawa Sign Historic Energy Agreement.” Prairie Sky Strategy, Nov. 2025, prairieskystrategy.ca/alberta-and-ottawa-sign-historic-energy-agreement/.

 

Encyclopaedia Britannica. “Bitumen.” Encyclopaedia Britannica, 2025, www.britannica.com/science/bitumen.