Alberta's Energy Sector Struggles Despite New Pipeline Proposal

A new pipeline proposal has revived optimism for Alberta's energy future, but private investment remains elusive. The Trans Mountain Corporation and the Alberta Petroleum Marketing Commission are set to develop and operate a $35-44 billion pipeline from Alberta to British Columbia, with Pembina Pipeline holding a 10% stake during construction.

Despite this development, industry shareholders lack the 'appetite to commit that type of capital,' according to Charles St-Arnaud, chief economist at Servus Credit Union. In fact, investment in oil and gas extraction in Alberta has declined by nearly 61% from $64.6 billion to $25.3 billion between 2014 and 2024.

Executives surveyed say environmental regulations are a major deterrent, with 50% citing 'stability, consistency and timeliness of environmental regulatory processes' as a reason for not investing in Alberta. This is compared to 14% in Wyoming and 11% in Texas.