Canada's Energy Ambitions Derailed by Complacency on Pipelines

Canada's ambition to become an energy superpower has been hindered by its failure to build pipelines to global markets, including Asia. Instead of investing in a northwest coast pipeline, which would have provided a new trade route for Canadian oil, the country is doubling down on U.S. oil exports.

The recent revival of Keystone XL, a million-barrel pipeline from Alberta to the United States, has been met with skepticism by many. The project was initially cancelled by President Joe Biden in 2021, but it has since been revived as part of a grand bargain between Canada and the U.S.

However, this decision has sparked criticism that Canada is prioritizing short-term gains over long-term strategic interests. By investing in pipelines to the U.S., Canada is missing out on opportunities to diversify its trade partners and reduce its reliance on a single market.

The private sector's enthusiasm for building a northwest coast pipeline has diminished, with approximately 1.3 million barrels of economically and politically palatable pipeline egress now likely to be unlocked this decade. This has led to concerns that Canada is becoming an energy colony, rather than a superpower.