Open Letter to Canadians
Alberta
Freedom Pipeline
February 16, 2021
FOR IMMEDIATE RELEASE
Red Deer – Mountain View, AB
Hours after being sworn into office on January 20, 2021, U.S. President Biden signed an executive order to revoke the presidential permit, thus cancelling the Keystone XL pipeline expansion project.
Thousands of direct jobs on both sides of the Canada-U.S. border were immediately lost. While this is disappointing to many Albertans, it does not come as a surprise as the Obama administration, which Biden was vice-president in, took a similar stance.
Prior to cancellation, TC Energy committed to operate the pipeline with net zero emissions when it was placed into service in 2023. Although Keystone XL is cancelled, the demand for oil will continue. Instead of shipping oil via a zero emissions pipeline, alternatives such as truck and rail will be required. This results in higher emissions and increased safety concerns.
From recent polling data, there is very little support from Canadians to see the federal government engage with the Biden administration in an attempt to have the permit re-instated. The Alberta government and other supporters of the pipeline have called for retaliatory measures and sanctions against the United States in an effort to restart the permit negotiation process. Unfortunately, these calls will fall on deaf ears. Additionally, the sanctions that could be brought against the United States would likely have little impact or only serve to make the situation worse. It is evident that the current Liberal government will not be taking further action on this file based on their initial comments on the decision and their overall ideological stance regarding the Western Canadian energy industry.
As nations around the world shift to stronger nationalist positions in light of the COVID-19 pandemic, Canada too must look out for its own interests. We must stop relying on other countries in matters of national importance. Energy independence is a decision of national importance.
The United States will continue to be a major trading partner for Canada but we must take steps to become more self-reliant. This starts with understanding the regulatory and social environment that Alberta’s oil and gas industry currently operates in.
Bill C-69 (no more pipelines) and Bill C-48 (tanker ban) enacted by the current Liberal government have created a poor investment climate in the oil and gas industry. The cancellation of Energy East and Enbridge Northern Gateway were both tied to these Bills. Critics will state that neither project was economically viable. This however is false. Global oil demand continues to remain strong, and has rebounded quickly after a significant decline due to wide scale shutdowns due to COVID-19.
Energy infrastructure projects that cross provincial borders are subject to regulatory review by the Canada Energy Regulator. This process is time consuming and overbearing. Given the current regulatory environment, Canadians (specifically Western Canadians) have two options. Continue to complain about said regulatory environment or think outside of the box to develop a new solution to get our most important resource to market. This is where “Freedom Pipeline” comes into play.
Pipeline infrastructure currently exists to move Western Canadian oil from Fort McMurray, Alberta to Cromer, Manitoba. The “Freedom Pipeline” would build on this existing infrastructure and move oil from Cromer to Churchill, Manitoba. As this leg of the pipeline would be completed within Manitoba’s borders, it would not be subject the Canada Energy Regulator (CER). This is supported by the July 26, 2019 decision by the National Energy Board (now CER) in relation to the Coastal GasLink Pipeline in British Columbia.
In order to proceed with this pipeline, the National Coalition of Chiefs should be immediately consulted so as to maximize the opportunities for First Nations communities throughout Manitoba. This should include discussions around the inclusion of First Nations owned businesses in the construction of the pipeline as well as an ownership stake in order to defeat on-reserve poverty.
Modern technology should be used to construct, protect and operate the pipeline. These include:
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Pipeline leak detection and containment system.
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Equipping oil tankers, moving through the Hudson Bay, with double-hull tanks and with Small Modular Reactors (SMRs) for propulsion.
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Commitment to operate the pipeline with renewable resources within a reasonable timeline and when economically viable.
In addition to providing good paying jobs to First Nations communities along the pipeline route and to Western Canadian oilfield workers, this pipeline will bring significant benefits to other Canadians. Jobs within Ontario’s steel industry would be created. Refinery positions would be created on Canada’s east coast, a region that is desperately in need of private sector investment and growth. Engineering and other professional service positions would be created as well. All of these jobs provide the dignity of work to the individuals who secure them and hope for a brighter future for their children.
What happens if the Liberal government enacts legislation to ban tanker traffic in the Hudson Bay and ultimately the route to refineries on the east coast? If this were to occur, Western provinces would immediately need to make a decision about their ongoing position in Confederation. If a tanker ban was enacted, Western provinces should exercise all available actions to secure autonomy. This would include exploring provincial pensions and referendums on equalization payments. The next step would be to explore options for separation.
Western provinces cannot continually be expected to be a part of a Confederation that doesn’t allow their industries to get products to market, families to provide for their children and communities to support the vulnerable.
The COVID-19 pandemic has ravaged our economy. Governments have spent hundreds of billions in response. We are faced with difficult decisions on how to secure our future. The “Freedom Pipeline” provides a quality option to secure paycheques for thousands of Canadians and bring hope back to our great country. It’s time to get to work.
Sincerely,
Jared Pilon
Libertarian Party Candidate for Red Deer – Mountain View, AB
From the Canadian Energy Centre
By Will Gibson
Alberta oil sands projects poised to grow on lower costs, strong reserves
As geopolitical uncertainty ripples through global energy markets, a new report says Alberta’s oil sands sector is positioned to grow thanks to its lower costs.
Enverus Intelligence Research’s annual Oil Sands Play Fundamentals forecasts producers will boost output by 400,000 barrels per day (bbls/d) by the end of this decade through expansions of current operations.
“Existing oil sands projects deliver some of the lowest-breakeven oil in North America at WTI prices lower than $50 U.S. dollars,” said Trevor Rix, a director with the Calgary-based research firm, a subsidiary of Enverus which is headquartered in Texas with operations in Europe and Asia.
Alberta’s oil sands currently produce about 3.4 million bbls/d. Individual companies have disclosed combined proven reserves of about 30 billion barrels, or more than 20 years of current production.
A recent sector-wide reserves analysis by McDaniel & Associates found the oil sands holds about 167 billion barrels of reserves, compared to about 20 billion barrels in Texas.
While trade tensions and sustained oil price declines may marginally slow oil sands growth in the short term, most projects have already had significant capital invested and can withstand some volatility.
Cenovus Energy’s Christina Lake oil sands project. Photo courtesy Cenovus Energy
“While it takes a large amount of out-of-pocket capital to start an oil sands operation, they are very cost effective after that initial investment,” said veteran S&P Global analyst Kevin Birn.
“Optimization,” where companies tweak existing operations for more efficient output, has dominated oil sands growth for the past eight years, he said. These efforts have also resulted in lower cost structures.
“That’s largely shielded the oil sands from some of the inflationary costs we’ve seen in other upstream production,” Birn said.
Added pipeline capacity through expansion of the Trans Mountain system and Enbridge’s Mainline have added an incentive to expand production, Rix said.
The increased production will also spur growth in regions of western Canada, including the Montney and Duvernay, which Enverus analysts previously highlighted as increasingly crucial to meet rising worldwide energy demand.
“Increased oil sands production will see demand increase for condensate, which is used as diluent to ship bitumen by pipeline, which has positive implications for growth in drilling in liquids-rich regions such as the Montney and Duvernay,” Rix said.
“If Ottawa had it’s way Albertans would be left to freeze in the dark”
The ineffective federal net-zero electricity regulations will not reduce emissions or benefit Albertans but will increase costs and lead to supply shortages.
The risk of power outages during a hot summer or the depths of harsh winter cold snaps, are not unrealistic outcomes if these regulations are implemented. According to the Alberta Electric System Operator’s analysis, the regulations in question would make Alberta’s electricity system more than 100 times less reliable than the province’s supply adequacy standard. Albertans expect their electricity to remain affordable and reliable, but implementation of these regulations could increase costs by a staggering 35 per cent.
Canada’s constitution is clear. Provinces have exclusive jurisdiction over the development, conservation and management of sites and facilities in the province for the generation and production of electrical energy. That is why Alberta’s government is referring the constitutionality of the federal government’s recent net-zero electricity regulations to the Court of Appeal of Alberta.
“The federal government refused to work collaboratively or listen to Canadians while developing these regulations. The results are ineffective, unachievable and irresponsible, and place Albertans’ livelihoods – and more importantly, lives – at significant risk. Our government will not accept unconstitutional net-zero regulations that leave Albertans vulnerable to blackouts in the middle of summer and winter when they need electricity the most.”
“The introduction of the Clean Electricity Regulations in Alberta by the federal government is another example of dangerous federal overreach. These regulations will create unpredictable power outages in the months when Albertans need reliable energy the most. They will also cause power prices to soar in Alberta, which will hit our vulnerable the hardest.”
Finalized in December 2024, the federal electricity regulations impose strict carbon limits on fossil fuel power, in an attempt to force a net-zero grid, an unachievable target given current technology and infrastructure. The reliance on unproven technologies makes it almost impossible to operate natural gas plants without costly upgrades, threatening investment, grid reliability, and Alberta’s energy security.
“Ottawa’s electricity regulations will leave Albertans in the dark. They aren’t about reducing emissions – they are unconstitutional, ideological activist policies based on standards that can’t be met and technology that doesn’t exist. It will drive away investment and punish businesses, provinces and families for using natural gas for reliable, dispatchable power. We will not put families at risk from safety and affordability impacts – rationing power during the coldest days of the year – and we will continue to stand up for Albertans.”
“Albertans depend on electricity to provide for their families, power their businesses and pursue their dreams. The federal government’s Clean Electricity Regulations threaten both the affordability and reliability of our power grid, and we will not stand by as these regulations put the well-being of Albertans at risk.”
Related information
- Conference Board of Canada socio-economic Impacts of Canada’s 2030 Emissions Reduction Plan – (April 2025)
- Alberta Electric System Operator’s position on Canadian Energy Regulations
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