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Economy

Support For National Pipelines And LNG Projects Gain Momentum, Even In Quebec

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From the Frontier Centre for Public Policy

By Joseph Quesnel

Public opinion on pipelines has shifted. Will Ottawa seize the moment for energy security or let politics stall progress?

The ongoing threats posed by U.S. tariffs on the Canadian economy have caused many Canadians to reconsider the need for national oil pipelines and other major resource projects.

The United States is Canada’s most significant trading partner, and the two countries have enjoyed over a century of peaceful commerce and good relations. However, the onset of tariffs and increasingly hostile rhetoric has made Canadians realize they should not be taking these good relations for granted.

Traditional opposition to energy development has given way to a renewed focus on energy security and domestic self-reliance. Over the last decade, Canadian energy producers have sought to build pipelines to move oil from landlocked Alberta to tidewater, aiming to reduce reliance on U.S. markets and expand exports internationally. Canada’s dependence on the U.S. for energy exports has long affected the prices it can obtain.

One province where this shift is becoming evident is Quebec. Historically, Quebec politicians and environmental interests have vehemently opposed oil and gas development. With an abundance of hydroelectric power, imported oil and gas, and little fossil fuel production, the province has had fewer economic incentives to support the industry.

However, recent polling suggests attitudes are changing. A SOM-La Presse poll from late February found that about 60 per cent of Quebec residents support reviving the Energy East pipeline project, while 61 per cent favour restarting the GNL Quebec natural gas pipeline project, a proposed LNG facility near Saguenay that would export liquefied natural gas to global markets. While support for these projects remains stronger in other parts of the country, this represents a substantial shift in Quebec.

Yet, despite this change, Quebec politicians at both the provincial and federal levels remain out of step with public opinion. The Montreal Economic Institute, a non-partisan think tank, has documented this disconnect for years. There are two key reasons for it: Quebec politicians tend to reflect the perspectives of a Montreal-based Laurentian elite rather than broader provincial sentiment, and entrenched interests such as Hydro-Québec benefit from limiting competition under the guise of environmental concerns.

Not only have Quebec politicians misrepresented public opinion, but they have also claimed to speak for the entire province on energy issues. Premier François Legault and Bloc Québécois Leader Yves-François Blanchet have argued that pipeline projects lack “social licence” from Quebecers.

However, the reality is that the federal government does not need any special license to build oil and gas infrastructure that crosses provincial borders. Under the Constitution, only the federal Parliament has jurisdiction over national pipeline and energy projects.

Despite this authority, no federal government has been willing to impose such a project on a province. Quebec’s history of resisting federal intervention makes this a politically delicate issue. There is also a broader electoral consideration: while it is possible to form a federal government without winning Quebec, its many seats make it a crucial battleground. In a bilingual country, a government that claims to speak for all Canadians benefits from having a presence in Quebec.

Ottawa could impose a national pipeline, but it doesn’t have to. New polling data from Quebec and across Canada suggest Canadians increasingly support projects that enhance energy security and reduce reliance on the United States. The federal government needs to stop speaking only to politicians—especially in Quebec—and take its case directly to the people.

With a federal election on the horizon, politicians of all parties should put national pipelines and natural gas projects on the ballot.

Joseph Quesnel is a senior research fellow with the Frontier Centre for Public Policy.

Alberta

Pierre Poilievre – Per Capita, Hardisty, Alberta Is the Most Important Little Town In Canada

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From Pierre Poilievre

The tiny town of Hardisty, Alberta (623 people) moves $90 billion in energy a year—that’s more than the GDP of some countries.

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Business

Why it’s time to repeal the oil tanker ban on B.C.’s north coast

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The Port of Prince Rupert on the north coast of British Columbia. Photo courtesy Prince Rupert Port Authority

From the Canadian Energy Centre

By Will Gibson

Moratorium does little to improve marine safety while sending the wrong message to energy investors

In 2019, Martha Hall Findlay, then-CEO of the Canada West Foundation, penned a strongly worded op-ed in the Globe and Mail calling the federal ban of oil tankers on B.C.’s northern coast “un-Canadian.”

Six years later, her opinion hasn’t changed.

“It was bad legislation and the government should get rid of it,” said Hall Findlay, now director of the University of Calgary’s School of Public Policy.

The moratorium, known as Bill C-48, banned vessels carrying more than 12,500 tonnes of oil from accessing northern B.C. ports.

Targeting products from one sector in one area does little to achieve the goal of overall improved marine transport safety, she said.

“There are risks associated with any kind of transportation with any goods, and not all of them are with oil tankers. All that singling out one part of one coast did was prevent more oil and gas from being produced that could be shipped off that coast,” she said.

Hall Findlay is a former Liberal MP who served as Suncor Energy’s chief sustainability officer before taking on her role at the University of Calgary.

She sees an opportunity to remove the tanker moratorium in light of changing attitudes about resource development across Canada and a new federal government that has publicly committed to delivering nation-building energy projects.

“There’s a greater recognition in large portions of the public across the country, not just Alberta and Saskatchewan, that Canada is too dependent on the United States as the only customer for our energy products,” she said.

“There are better alternatives to C-48, such as setting aside what are called Particularly Sensitive Sea Areas, which have been established in areas such as the Great Barrier Reef and the Galapagos Islands.”

The Business Council of British Columbia, which represents more than 200 companies, post-secondary institutions and industry associations, echoes Hall Findlay’s call for the tanker ban to be repealed.

“Comparable shipments face no such restrictions on the East Coast,” said Denise Mullen, the council’s director of environment, sustainability and Indigenous relations.

“This unfair treatment reinforces Canada’s over-reliance on the U.S. market, where Canadian oil is sold at a discount, by restricting access to Asia-Pacific markets.

“This results in billions in lost government revenues and reduced private investment at a time when our economy can least afford it.”

The ban on tanker traffic specifically in northern B.C. doesn’t make sense given Canada already has strong marine safety regulations in place, Mullen said.

Notably, completion of the Trans Mountain Pipeline expansion in 2024 also doubled marine spill response capacity on Canada’s West Coast. A $170 million investment added new equipment, personnel and response bases in the Salish Sea.

“The [C-48] moratorium adds little real protection while sending a damaging message to global investors,” she said.

“This undermines the confidence needed for long-term investment in critical trade-enabling infrastructure.”

Indigenous Resource Network executive director John Desjarlais senses there’s an openness to revisiting the issue for Indigenous communities.

“Sentiment has changed and evolved in the past six years,” he said.

“There are still concerns and trust that needs to be built. But there’s also a recognition that in addition to environmental impacts, [there are] consequences of not doing it in terms of an economic impact as well as the cascading socio-economic impacts.”

The ban effectively killed the proposed $16-billion Eagle Spirit project, an Indigenous-led pipeline that would have shipped oil from northern Alberta to a tidewater export terminal at Prince Rupert, B.C.

“When you have Indigenous participants who want to advance these projects, the moratorium needs to be revisited,” Desjarlais said.

He notes that in the six years since the tanker ban went into effect, there are growing partnerships between B.C. First Nations and the energy industry, including the Haisla Nation’s Cedar LNG project and the Nisga’a Nation’s Ksi Lisims LNG project.

This has deepened the trust that projects can mitigate risks while providing economic reconciliation and benefits to communities, Dejarlais said.

“Industry has come leaps and bounds in terms of working with First Nations,” he said.

“They are treating the rights of the communities they work with appropriately in terms of project risk and returns.”

Hall Findlay is cautiously optimistic that the tanker ban will be replaced by more appropriate legislation.

“I’m hoping that we see the revival of a federal government that brings pragmatism to governing the country,” she said.

“Repealing C-48 would be a sign of that happening.”

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