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Energy

TMX Pipeline a Success Story – Despite All the Green Battles Against It

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7 minute read

From Energy Now

By Resource Works

“As we go into winter months, Canada will set new export records”

We remember well the green battles against the “TMX” expansion of the Trans Mountain oil pipeline from Alberta to B.C. The idea was, they said, at best unnecessary and at worst thoroughly dangerous to the world environment.

One group said the expansion “threatens to unleash a massive tar sands spill that would threaten drinking water, salmon, coastal wildlife, and communities.” It would also, others said, impede investment in clean energy and undermine Canada’s efforts to deal with climate change.

Some said the expanded line would be an imposition on First Nations. But a number of First Nations are interested in acquiring an equity stake in the pipeline (and the federal government, which owns the line, is looking to sell a 30-percent stake to them).

Despite the loud opposition, the federal government went ahead and purchased the pipeline and the expansion project in May 2018, completing the pipeline’s expansion this year at a total cost of $31 billion.

Prime Minister Trudeau’s explanation: Ottawa stepped in because owner Kinder Morgan “wanted to throw up their hands and walk away,” and his government wanted to make sure that Canadian oil could reach new markets.

Alberta’s Canadian Energy Centre supported that outlook: “We’re going to be moving into a market where buyers are going to be competing to buy Canadian oil.”

Our Margareta Dovgal wrote: “What matters to us is the benefits to Canada. For one thing, we now will be able to ship more oil by tanker to refineries on the U.S. West Coast at a better price than oil by tanker from Alaska. And . . . we’ll have more oil more readily available for overseas buyers.

“So, all in all, we can expect to see higher returns on our oil, and we can continue to see the immense benefits of high-paying jobs in Canadian energy, and the benefits of revenues to government.”

It has all been happening, in spades.

And the opening of the expanded pipeline on May 1 this year also helped bring down gasoline prices.

In Vancouver, for example, regular gasoline in April ran as high as $2.359 a litre. At the beginning of May, as key refineries returned to normal after seasonal maintenance work, it stood around $2.085. As October opened, the price was as low as $1.579.

Economist G. Kent Fellows said at an event hosted by Resource Works and the Business Council of B.C.: “Our analysis shows that insufficient pipeline capacity was costing B.C. consumers an estimated $1.5 billion per year in higher gasoline prices.

“With TMX now operational, wholesale gasoline prices in Vancouver dropped by about 28 cents per litre compared to earlier this year.”

As for those buyers competing for our oil, some thought the prime export destination would be California. But the summer just past brought exports on tankers from Vancouver to China, Japan, India, Hong Kong, South Korea, and Brunei.

As of now, California is indeed leading as a destination, with Asian buyers having eased off after their initial purchases. Experts say that was expected, with Asian refineries first taking test cargoes to see how their systems handle our oil.

Kevin Birn, chief Canadian oil markets analyst for S&P Global, told Business in Vancouver: “There is always a market for crude oil in the Pacific Basin. We always saw the need for the Trans Mountain pipeline. We saw Canadian production continuing to grow.”

Birn added: “It’s still relatively early. I’d expect volumes to continue to build, cargoes to test different markets all over the place, and over time you’ll start to see patterns.

“As we go into winter months, Canada will set new export records, because as capacity’s been optimized and new product projections and wells are brought online, the winter tends to be the peak period.

“Every year, I think, for the next couple of years, Canada will set new records.”

That would be good news for Canada’s economy — and for Alberta’s.

There are no statistics available yet on the TMX line’s impact on the economy, but in 2019 Trans Mountain estimated that construction and operation would mean $46 billion in revenue to governments over the first 20 years.

Today, as reported by Alberta’s energy minister, Brian Jean, Alberta continues to break records for crude oil production, with global demand continuing to grow.

The latest numbers from the Alberta Energy Regulator show Alberta’s oil production averaged a little over 4 million barrels per day in August — the highest on record for any August.

“The addition of 590,000 barrels per day of heavy oil pipeline capacity from Alberta to the B.C. coast earlier this year with the completion of the Trans Mountain Pipeline expansion project has been instrumental in the recent production increases.”

All this as the International Energy Agency said that while oil demand is decelerating from 2023 levels due to a slowing economy in China, demand is still set to increase by 900,000 barrels per day (bpd) this year. That would push global consumption to a record level of almost 103 million bpd.

And that forecast came as Jonathan Wilkinson, our federal minister of energy and natural resources, declared: “Oil and gas will peak this decade. In fact, oil is probably peaking this year.”

A bevy of market-watchers disagreed with him. Among them, Greg Ebel, CEO of Calgary-based Enbridge, says global oil consumption will be “well north” of 100 million barrels per day by 2050 — and could exceed 110 million barrels.

“You continue to see economic demands, and particularly in the developing world, people continue to say lighter, faster, denser, cheaper energy works for our people. . . And that’s leading to more oil usage.”

Alberta

The Canadian Energy Centre’s biggest stories of 2025

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From the Canadian Energy Centre

Canada’s energy landscape changed significantly in 2025, with mounting U.S. economic pressures reinforcing the central role oil and gas can play in safeguarding the country’s independence.

Here are the Canadian Energy Centre’s top five most-viewed stories of the year.

5. Alberta’s massive oil and gas reserves keep growing – here’s why

The Northern Lights, aurora borealis, make an appearance over pumpjacks near Cremona, Alta., Thursday, Oct. 10, 2024. CP Images photo

Analysis commissioned this spring by the Alberta Energy Regulator increased the province’s natural gas reserves by more than 400 per cent, bumping Canada into the global top 10.

Even with record production, Alberta’s oil reserves – already fourth in the world – also increased by seven billion barrels.

According to McDaniel & Associates, which conducted the report, these reserves are likely to become increasingly important as global demand continues to rise and there is limited production growth from other sources, including the United States.

4. Canada’s pipeline builders ready to get to work

Photo courtesy Coastal GasLink

Canada could be on the cusp of a “golden age” for building major energy projects, said Kevin O’Donnell, executive director of the Mississauga, Ont.-based Pipe Line Contractors Association of Canada.

That eagerness is shared by the Edmonton-based Progressive Contractors Association of Canada (PCA), which launched a “Let’s Get Building” advocacy campaign urging all Canadian politicians to focus on getting major projects built.

“The sooner these nation-building projects get underway, the sooner Canadians reap the rewards through new trading partnerships, good jobs and a more stable economy,” said PCA chief executive Paul de Jong.

3. New Canadian oil and gas pipelines a $38 billion missed opportunity, says Montreal Economic Institute

Steel pipe in storage for the Trans Mountain Pipeline expansion in 2022. Photo courtesy Trans Mountain Corporation

In March, a report by the Montreal Economic Institute (MEI) underscored the economic opportunity of Canada building new pipeline export capacity.

MEI found that if the proposed Energy East and Gazoduq/GNL Quebec projects had been built, Canada would have been able to export $38 billion worth of oil and gas to non-U.S. destinations in 2024.

“We would be able to have more prosperity for Canada, more revenue for governments because they collect royalties that go to government programs,” said MEI senior policy analyst Gabriel Giguère.

“I believe everybody’s winning with these kinds of infrastructure projects.”

2. Keyera ‘Canadianizes’ natural gas liquids with $5.15 billion acquisition

Keyera Corp.’s natural gas liquids facilities in Fort Saskatchewan, Alta. Photo courtesy Keyera Corp.

In June, Keyera Corp. announced a $5.15 billion deal to acquire the majority of Plains American Pipelines LLP’s Canadian natural gas liquids (NGL) business, creating a cross-Canada NGL corridor that includes a storage hub in Sarnia, Ontario.

The acquisition will connect NGLs from the growing Montney and Duvernay plays in Alberta and B.C. to markets in central Canada and the eastern U.S. seaboard.

“Having a Canadian source for natural gas would be our preference,” said Sarnia mayor Mike Bradley.

“We see Keyera’s acquisition as strengthening our region as an energy hub.”

1. Explained: Why Canadian oil is so important to the United States

Enbridge’s Cheecham Terminal near Fort McMurray, Alberta is a key oil storage hub that moves light and heavy crude along the Enbridge network. Photo courtesy Enbridge

The United States has become the world’s largest oil producer, but its reliance on oil imports from Canada has never been higher.

Many refineries in the United States are specifically designed to process heavy oil, primarily in the U.S. Midwest and U.S. Gulf Coast.

According to the Alberta Petroleum Marketing Commission, the top five U.S. refineries running the most Alberta crude are:

  • Marathon Petroleum, Robinson, Illinois (100% Alberta crude)
  • Exxon Mobil, Joliet, Illinois (96% Alberta crude)
  • CHS Inc., Laurel, Montana (95% Alberta crude)
  • Phillips 66, Billings, Montana (92% Alberta crude)
  • Citgo, Lemont, Illinois (78% Alberta crude)
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Energy

Rulings could affect energy prices everywhere: Climate activists v. the energy industry in 2026

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From The Center Square

By 

Anti-oil and gas advocates across the country have pursued litigation in recent years attempting to force the fossil fuel industry to pay for decades of financial damages the advocates claim were caused by climate change.

Several cases have been dismissed while others advanced through court systems, with some being considered before the U.S. Supreme Court in 2026. Critics of the litigation call it “woke lawfare” and an attempt to force progressive political policies via the judicial system.

Critics also argue the lawsuits threaten U.S. energy independence and, depending on outcomes, will have sweeping impacts on every American.

Here are some of those cases.

Chevron USA Inc. v. Plaquemines Parish, Louisiana

On Jan. 12, 2026, the U.S. Supreme Court will hear oral arguments in Plaquemines Parish, Louisiana, vs. Chevron USA Inc. The case questions to what extent a state court can litigate against an oil company for its production of oil even if it obtained federal permits to produce the oil.

The litigation challenges activities of the oil companies dating back to World War II in some cases. Chevron argued the lawsuit was flawed, claiming that the activities in question were permitted, legal, and often conducted under federal direction – particularly those tied to national security during World War II.

A Plaquemines Parish jury in April ordered Chevron to pay $744 million in damages for its role in the degradation of the state’s coastal wetlands. Environmental activists celebrated the verdict. It was the first of 42 lawsuits filed since 2013 by parishes across coastal Louisiana to go to trial.

The Trump administration’s Justice Department stepped in on Chevron’s side, urging the Supreme Court to move the case from state court to federal court.

Business groups and energy advocates warned the verdict will drive jobs and investment out of Louisiana. The Louisiana Association of Business and Industry called the decision “shortsighted,” saying it would “brand Louisiana as a state that will extort the most recognizable companies on earth for billions of dollars, decades later.”

O.H. Skinner, executive director of Alliance for Consumers, told the Center Square the case seeks to score large settlements from the energy industry and stop oil production.

“The case arises from a broader campaign of woke lawfare in which activists and municipal governments seek to use courtrooms to determine what companies are allowed to produce and what consumers can buy,” Skinner said.

Suncor Energy Inc. v. Boulder

The nation’s highest court is still deciding whether it will hear arguments in Suncor Energy Inc. v. Boulder; a case to decide whether state and local governments can use nuisance laws to sue energy companies for activities that may cause climate change.

The case, originating in Colorado, centers around a City of Boulder and Boulder County lawsuit in state court against Suncor Energy claiming it misled the public in its activities that the local governments claim led to climate change effects.

Lawyers for Suncor Energy argue that allowing a case like this one to play out goes against protections in the Clean Air Act that prevent lawsuits from occurring against emitters from across state lines.

“Public nuisance can’t be used for global problems. It can be used for local problems,” Skinner told The Center Square. “That’s what it’s supposed to be used for.”

However, Skinner said many organizations that are pursuing climate change litigation are seeking to bankrupt energy companies with large monetary settlements. He said litigants will likely attempt to drain energy companies of their resources and use the funds to advocate certain ideological causes.

“These are highly ideological dark-money-funded, multi-faceted legal campaigns to bankrupt an entire industry and confiscate it for ideological reasons,” Skinner said.

City and County of Honolulu v. Sunoco

Similarly, in 2020, City and County of Honolulu v. Sunoco was one of the first examples of public nuisance lawsuits pursued in a state court. The city and county of Honolulu filed a lawsuit in 2020 accusing oil and gas companies, including Sunoco, Exxon Mobil, BP, Chevron and Shell, of misleading the public for decades about the dangers of climate change induced by burning fossil fuels.

The companies asked the U.S. Supreme Court to intervene in the case, but the court, without ruling on the merits, declined to do so in January.

While the case is based in Hawaii, Skinner said litigants there hope it will have far-reaching effects across the country.

“They’re not trying to stop behavior just in those states,” Skinner said. ”The thing that really freaks me out is how people in regular, everyday, real America are going to potentially be affected.”

The People of the State of California v. Exxon Mobil Corporation

Going a step further than Boulder and Honolulu, California Democrat Attorney General Rob Bonta filed a complaint against ExxonMobil in 2024 for what he says are its contributions to “the deluge of plastic pollution” affecting the state.

Exxon countersued, alleging “Bonta and the US Proxies – the former for political gain and the latter pawns for the Foreign Interests – have engaged in a deliberate smear campaign against ExxonMobil, falsely claiming that ExxonMobil’s effective and innovative advanced recycling technology is a ‘false promise’ and ‘not based on truth.,” American Tort Reform Foundation reported.

One of the foreign interests is  IEJF, an Australian nonprofit that’s connected to an Australian mining conmpany “that competes with ExxonMobil in the low carbon solutions and energy transition markets, ATRF reported.

Skinner said the litigants in this case are attempting to significantly reduce plastic use throughout the state of California and potentially beyond.

“That’ll make your average person’s life dramatically harder, and it’ll make a lot of things a lot more expensive, and it’ll make having kids, like, brutal,” Skinner said.

Leon v. Exxon Mobil Corp.

Aside from monetary settlements, petitioners in this case also are seeking wrongful death claims against energy companies for their contributions to climate change. The case stems from a woman in Washington state who said her mother died from heat-related illness due to the exacerbated effects of climate change.

She is suing energy companies for their alleged creation of conditions over a period of decades that led to increased temperatures on the day her mother died.

Skinner told The Center Square this case is one of the more blatant examples of ideology affecting the way a litigant pursues cases.

“I think they care because a death is worth a lot of money,” Skinner said. “The climate homicide cases are one of the more far-fetched legal theories I’ve ever seen, because you’re leveling this incredibly staggering charge.”

Climate cases will continue to move through the court system, with one to be heard before the U.S. Supreme Court in early 2026.

Skinner is urging the U.S. Supreme Court and lower courts to rule in favor of energy companies across the country.

“We want the energy companies to win, not because they are perfect actors, but because the alternative is that our lives are governed day in and day out by woke trial lawyers, woke [nongovernmental organizations] and local governments,” Skinner said.

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