Pipeline Optimism Masks Alberta's Persistent Investment Problem

A new pipeline proposal has reignited optimism for Alberta's energy future, but private investment remains on the sidelines.

The proposed pipeline would run from Alberta to the southern coast of British Columbia and is expected to cost between $35 billion and $44 billion, primarily funded by taxpayers.

According to Charles St-Arnaud, chief economist at Servus Credit Union, industry shareholders currently lack the 'appetite to commit that type of capital'.

However, Alberta's investment challenge extends far beyond one pipeline. From 2014 to 2024, investment in oil and gas extraction in Alberta declined from $64.6 billion to $25.3 billion (adjusted for inflation), a decrease of nearly 61 per cent.