IEEFA Report Raises Doubts on Need for $43 Billion Pipeline

A new report from the Institute for Energy Economics and Financial Analysis (IEEFA) has cast doubt on whether Canada's oil industry really needs the proposed $43-billion West Coast pipeline.

The think tank argues that existing pipelines can handle Canada's expected oil-production growth, making the new project unnecessary. The IEEFA report states that 'the wider market conditions required to support rapid output growth are far from certain and the global energy transition appears to make them less likely.'

This analysis comes as the federal government is set to decide whether to fast-track Alberta's proposed pipeline, which would be capable of transporting one million barrels per day.

Prime Minister Mark Carney signed a Memorandum of Understanding (MOU) agreement with Alberta Premier Danielle Smith in November 2025, paving the way for the project. However, the IEEFA report suggests that potential benefits of the pipeline are 'steeped in risk.'