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CANADA MUST REVIVE A “PIPELINE WEST” – Indigenous Ownership and Investment in Energy Projects are Critical to Canada’s Oil Customer Diversification

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From EnergyNow.Ca

By Maureen McCall

Interesting events renewed discussions around pipeline projects when Alberta Premier, Daniel Smith made social media comments on Jan 21.2025 that Canada should have more nation-building projects and revive Northern Gateway.

It inspired an immediate comment from the President of the Union of BC Indian Chiefs, Grand Chief Stewart Phillip expressing interest in reviving the project.  “If we don’t build that kind of infrastructure, Trump will,” Phillip said. “And there won’t be any consideration for the environment, for the rule of law… I think we can do better.”

The next day, Chief Phillip retracted the comment leaving questions about the 180-degree pivot.

Some proponents of Indigenous development, like Calvin Helin, a member of the Tsimshian Nation and Principal at INDsight Advisers, a lawyer who specializes in commercial and Indigenous law and best-selling author, thought the event raised questions about influence.

Environmental groups have infiltrated some Indigenous organizations,” Helin said in an interview. “They managed to support a government that championed their agendas, particularly agendas involving Alberta – objectives like the coastal pipeline ban and changes to the regulatory approval system. In this era of Trump, all they’ve managed to do is to weaken Canada’s position.”

Helin stressed that in 2025, the energy industry clearly understands the mandate to deal seriously with Indigenous interests, with Indigenous leaders coming forward to support natural resource development while respecting the environment.  He suggested that Indigenous inclusion and recognition at the outset is essential for energy projects in 2025 and beyond.

Back in 2018-2019, Helin proposed the Eagle Spirit Corridor a $50 -billion First Nations majority-owned Canadian four pipeline corridor after the Northern Gateway Pipeline was under consideration.

Helin had consulted early with Indigenous groups and proposed a robust natural resource corridor from Bruderheim, AB to Grassy Point, BC. The project involved the support of 32 First Nations from the outset. A variety of shared services were proposed to make the corridor more economical than a pipeline. Helin expected the project would create tens of thousands of jobs over the long term, as well as generate tax revenue and royalties, but it was killed by the federal government’s Bill C-48 tanker ban which stopped companies from using terminals along BC’s north coast to ship oil. The project was ultimately abandoned.

The Enbridge Northern Gateway Pipeline project for a twin pipeline from Bruderheim, AB, to Kitimat, BC, was also stopped by Bill C-48. Both Eagle Spirit and Northern Gateway chose the north BC coast for transportation to Asian markets for the deeper waters that could accommodate larger-capacity crude oil tankers.

The routes of the Eagle Spirit and Northern Gateway pipelines/corridors are quite similar with Eagle Spirit’s route extending a bit farther north in the final leg, as in the maps below.

 

 

 

Recent threats of tariffs on Canadian imports made by U.S. President Trump have stimulated calls to revive pipeline projects to tidewater, including Northern Gateway.

In direct reference to Northern Gateway, Enbridge CEO Greg Ebel has stated to media that Canada would have to designate major pipeline projects as legally required “in the national interest” before companies will consider investing again.

After the cancellation of Northern Gateway, Dale Swampy,the Indigenous leader who helped to establish the Northern Gateway Aboriginal Equity Partners group (AEP), formed the National Coalition of Chiefs(NCC), a group of pro-development First Nation Chiefs who advocate for the development of oil and gas resources in their communities.

Dale Swampy, President of the NCC says it still makes good sense to get a pipeline devoted to bitumen to the West Coast and that Canada has been “putting all its eggs in one basket” for 50 years and has been selling to just one customer  while “everybody else in the oil industry, including the U.S., is getting into the global competitive market.”

The Canadian Energy Centre reports that the oil and gas industry is not going into decline over the next decade and in fact, the demand for oil and gas in emerging and developing economies will remain robust through 2050. In light of the multiple effects of U.S. tariffs, Canadian pipelines to tidewater are seen as urgent. Swampy advocates for policy change and the revival of the Northern Gateway project powered by Indigenous equity investment.

“First, we have got to get rid of the oil tanker ban (C-48),” Swampy said.  “We’ve got to get more fluid regulatory processes so that we can get projects built in a reasonable timeline so that it doesn’t cost us billions more, waiting for the regular regulatory process to be complete- like TMX. You’ve also got to get the proponents back to the table. We had 31 of the 40 communities already signed on last time. I believe that we can get them signed on again.”

He continues to work with industry to develop an Indigenous-led bitumen pipeline project to the west coast. “We can get this project built if it’s led by First Nations.”

He says other Indigenous leaders are starting to realize the benefits of cooperating with natural resource development, whether it’s mining or the BC LNG projects that he says are now more widely accepted by First Nations.

Stephen Buffalo, President and CEO of the Indian Resource Council of Canada (IRC) agrees.

“I talk about ripple effects,” Buffalo said. “When Jason Kenney was Premier of Alberta, and the Trans Mountain expansion was a big discussion, he wanted to ensure that First Nations had an opportunity to be some sort of equity owner in projects. With the lack of investment capital, he created the Alberta Indigenous Opportunities Corporation with the province as a government backstop.”

Buffalo says the IRC has assembled just over $800 million in government backstop for First Nations to participate in projects which found strong proponents. And those projects are related to natural resource development. He acknowledged that some communities – some of them in BC, don’t see the big picture of what Indigenous Opportunities Corporations can allow them to do.

“You shouldn’t get in the way of others that really need access to healthcare and education and want to develop their communities. I always tell people, our land base, that we were given under the Indian Act, isn’t changing what our populations are. We need housing, and we need the infrastructure, which includes clean water.”

He sees the urgent need for First Nations to get out of poverty and alliances to develop natural resources are key.

“ When we landlock our resources, the U.S. economy seems to get better. Now we’re dependent on the U.S. We have to send our oil to the U.S. at a huge discount. Could or should we have Northern Gateway? Absolutely. Should we have Energy East? Absolutely. We’re importing oil, but we have it at home. Why do we need to import it?”

Buffalo agreed that project discussions and regulations have huge value, but the slowness of the discussion, including pushback from environmental groups that influence discussions is negatively impacting First Nation development. In the case of regulations like Bill C-59, the anti-greenwashing bill, Buffalo says it has silenced many of the members of the Indian Resource Council.

“I’m just looking after our communities,” Buffalo says, “the ones that are never written about, talked about, the ones that don’t have clean water, that don’t have adequate housing, that are lacking education foundations, that are lacking good health care.  When government regulatory bodies are making decisions, they’re making decisions for those people that they don’t ever see or ever talk to.”

My discussions with Calvin Helin, Stephen Buffalo and Dale Swampy resulted in a few policy suggestions for 2025 and beyond.

  1. Repeal Bill C- 69 – It not only blocks all pipelines but stops mines, refineries, export plants and other energy infrastructure that First Nations want to invest in. C-69 is unconstitutional- as ruled on October 13.2023 by Canada’s top court.
  2. Cut Taxes in Response to U.S. Tariffs– Tax cuts on investment and energy can neutralize the cost of the tariffs with lower taxes and incentivize investment in Canadian projects. Eliminate the Carbon Tax- Carbon tax elimination has been popular with First Nation leaders who have stated the tax has put us at a strategic disadvantage to other countries.
  3. Repeal Bill C-59, the anti-green-washing bill, which according to Stephen Buffalo has silenced many of the members of the Indian Resource Council and Bill C-48 – the Tanker Ban.
  4. Greenlight LNG Plants and related infrastructure– Canada sells gas exports uniquely to the U.S. There is a strong business case for sales to Asian and European markets. In a recent Canadian Energy Ventures webcast it was revealed that Natural Gas is sold as LNG to Europe at 16X the price Canada sells its gas to the U.S. First Nations are successfully involved in Woodfibre LNG, Cedar LNG and Ksi Lisims LNG in BC.
  5. Cut Regulatory Delay & Speed Up Approvals – Delay undermines investor confidence that projects can be completed in reasonable timelines.
  6. Reconciliation– Issue clear guidelines on what constitutes meaningful consultation. Industry can treat Indigenous peoples as partners and continue to advance economic reconciliation, including equity partnerships.

Maureen McCall is an energy professional who writes on issues affecting the energy industry.

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Canadian Energy Centre

Emissions cap will end Canada’s energy superpower dream

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From the Canadian Energy Centre

By Will Gibson

Study finds legislation’s massive cost outweighs any environmental benefit

The negative economic impact of Canada’s proposed oil and gas emissions cap will be much larger than previously projected, warns a study by the Center for North American Prosperity and Security (CNAPS).

The report concluded that the cost of the emissions cap far exceeds any benefit from emissions reduction within Canada, and it could push global emissions higher instead of lower.

Based on findings this March by the Office of the Parliamentary Budget Officer (PBO), CNAPS pegs the cost of the cap to be up to $289,000 per tonne of reduced emissions.

That’s more than 3,600 times the cost of the $80-per-tonne federal carbon tax eliminated this spring.

The proposed cap has already chilled investment as Canada’s policymakers look to “nation-building” projects to strengthen the economy, said lead author Heather Exner-Pirot.

“Why would any proponent invest in Canada with this hanging over it? That’s why no other country is talking about an emissions cap on its energy sector,” said Exner-Pirot, director of energy, natural resources and environment at the Macdonald-Laurier Institute.

Federal policy has also stifled discussion of these issues, she said. Two of the CNAPS study’s co-authors withdrew their names based on legal advice related to the government’s controversial “anti-greenwashing” legislation.

“Legitimate debate should not be stifled in Canada on this or any government policy,” said Exner-Pirot.

“Canadians deserve open public dialogue, especially on policies of this economic magnitude.”

Carbon leakage

To better understand the impact of the cap, CNAPS researchers expanded the PBO’s estimates to reflect impacts beyond Canada’s borders.

“The problem is something called carbon leakage. We know that while some regions have reduced their emissions, other jurisdictions have increased their emissions,” said Exner-Pirot.

“Western Europe, for example, has de-industrialized but emissions in China are [going up like] a hockey stick, so all it’s done is move factories and plants from Europe to China along with the emissions.”

Similarly, the Canadian oil and gas production cut by the cap will be replaced in global markets by other producers, she said. There is no reason to assume capping oil and gas emissions in Canada will affect global demand.

The federal budget office assumed the legislation would reduce emissions by 7.1 million tonnes. CNAPS researchers applied that exclusively to Canada’s oil sands.

Here’s the catch: on average, oil sands crude is only about 1 to 3 percent more carbon-intensive than the average crude oil used globally (with some facilities emitting less than the global average).

So, instead of the cap reducing world emissions by 7.1 million tonnes, the real cut would be only 1 to 3 percent of that total, or about 71,000 to 213,000 tonnes worldwide.

In that case, using the PBO’s estimate of a $20.5 billion cost for the cap in 2032, the price of carbon is equivalent to $96,000 to $289,000 per tonne.

Economic pain with no environmental gain

Exner-Pirot said doing the same math with Canada’s “conventional” or non-oil sands production makes the situation “absurd.”

That’s because Canadian conventional oil and natural gas have lower emissions intensity than global averages. So reducing that production would actually increase global emissions, resulting in an infinite price per tonne of carbon.

“This proposal creates economic pain with no environmental gain,” said Samantha Dagres, spokesperson for the Montreal Economic Institute.

“By capping emissions here, you are signalling to investors that Canada isn’t interested in investment. Production will move to jurisdictions with poorer environmental standards as well as bad records on human rights.”

There’s growing awareness about the importance of the energy sector to Canada’s prosperity, she said.

“The public has shown a real appetite for Canada to become an energy superpower. That’s why a June poll found 73 per cent of Canadians, including 59 per cent in Quebec, support pipelines.”

Industries need Canadian energy

Dennis Darby, CEO of Canadian Manufacturers & Exporters (CME), warns the cap threatens Canada’s broader economic interests due to its outsized impact beyond the energy sector.

“Our industries run on Canadian energy. Canada should not unnecessarily hamstring itself relative to our competitors in the rest of the world,” said Darby.

CME represents firms responsible for over 80 per cent of Canada’s manufacturing output and 90 per cent of its exports.

Rather than the cap legislation, the Ottawa-based organization wants the federal government to offer incentives for sectors to reduce their emissions.

“We strongly believe in the carrot approach and see the market pushing our members to get cleaner,” said Darby.

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Alberta

Is Alberta getting ripped off by Ottawa? The numbers say yes

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This article supplied by Troy Media.

Troy MediaBy Lennie Kaplan

Alberta has the leverage and the responsibility to push for serious reform of Canada’s equalization system

Albertans are projected to send $252.5 billion more to Ottawa than they get back over the next 15 years —a staggering imbalance that underscores the
urgent need to overhaul federal-provincial fiscal arrangements.

That figure represents Alberta’s net fiscal contribution—the difference between what Alberta sends to Ottawa in taxes and what they get back in
return. Alberta, like all provincial governments, does not directly contribute to federal revenues.

These projections are based on fiscal estimates I’ve prepared using the same framework as Statistics Canada’s annual fiscal reports. Between 2025 and 2039, federal revenues raised in Alberta are expected to total nearly $1.42 trillion, while spending in the province will reach only $1.17 trillion. That leaves a gap of $252.5 billion.

This gap isn’t static. On an annual basis, Alberta’s contribution is projected to grow significantly over time. It’s forecast to rise from $12.7 billion in 2025, or $2,538 per person, to nearly $20.6 billion, or $3,459 per person, by 2039.

This isn’t new. Alberta has long been a major net contributor to Confederation. Between 2007 and 2023, Albertans paid $267.4 billion more to
Ottawa than they received in return, according to Statistics Canada. The only exception came in 2020 and 2021, years heavily impacted by COVID-19.

Albertans face the same federal tax rates as other Canadians but pay far more per person due to higher average incomes and a strong corporate tax base. This higher contribution translates into billions collected annually by Ottawa.

In 2025, the federal government is projected to collect $68.8 billion from Alberta, about $13,743 per person. By 2039, that will grow to $127.2 billion, or $21,380 per person. More than half will come from personal income taxes.

Meanwhile, federal spending in Alberta lags behind. In 2025, it’s expected to be $56.1 billion, or $11,205 per person—rising to $106.6 billion, or $17,831 per person, by 2039.

This includes transfers to individuals—about $17.5 billion in 2025, and $28.8 billion in 2039—and federal transfers to the provincial government, which are projected to grow from $12.9 billion to $20.9 billion. These include the Canada Health Transfer and the Canada Social Transfer, which help fund health care, education and social services.

Alberta does not receive equalization payments, which are meant to help less wealthy provinces provide comparable public services. Equalization is funded through general federal revenues, including taxes paid by Albertans. That imbalance is more than a budget line—it speaks to a deeper fairness issue at the heart of federal-provincial relations. Alberta pays more, gets less and continues to shoulder a disproportionate share of the federal burden.

That’s why Alberta must take the lead in pushing for reform. The Alberta Next Panel process—a provincial initiative to gather public input and expert advice on Alberta’s role in Confederation—gives the government an opportunity to consult with Albertans and bring forward proposals to fix the tangled mess of federal transfer programs.

These proposals should be advanced by Premier Danielle Smith’s government in discussions with Ottawa and other provinces. Alberta’s fiscal strength demands a stronger voice at the national table.

Some may argue for separation, but that’s not a viable path. The better solution is to demand fairness—starting with a more rigorous, transparent process for renewing major federal transfer programs.

Right now, Ottawa often renews key programs, like equalization, without proper consultation. That’s unacceptable. Provinces like Alberta deserve a seat at the table when billions of dollars are at stake.

If Alberta is expected to keep footing the bill, it must be treated as a full partner —not just a source of cash. Fixing the imbalance isn’t just about Alberta. A more open, co-operative approach to fiscal policy will strengthen national unity and ensure all provinces are treated fairly within Confederation.

Lennie Kaplan is a former senior manager in the Fiscal and Economic Policy Division of Alberta’s Ministry of Treasury Board and Finance. During his tenure, he focused, among other duties, on developing meaningful options to reform federal-provincial fiscal arrangements. 

Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.

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