Ontario and Alberta Premiers Unite to Push for New Pipelines and Rail Links

Strategic Insights -

Ontario Premier Doug Ford and Alberta Premier Danielle Smith have signed two memorandums of understanding to boost mining development and build new pipelines and rail links to get Alberta oil to market. Their agreement comes as newly elected Prime Minister Mark Carney vows to make Canada an energy superpower, despite concerns from Indigenous groups, environmentalists, and opposition to a westward pipeline through British Columbia.

Key Takeaways:

  • The Ontario and Alberta premiers want to build new pipelines and rail links using Ontario steel to get Alberta oil to market, with a focus on using Canadian resources and workers.
  • The agreement includes a feasibility study to map out routes for the energy corridors, with a focus on safe transportation and export of critical minerals and Western Canadian oil and natural gas.
  • Prime Minister Carney has vowed to make Canada an energy superpower, despite concerns from some groups, and has promised that a new oil pipeline through British Columbia will be included in Ottawa's list of projects of national importance.
  • The agreement comes as Ottawa and the provinces work together to increase internal trade while looking to new markets in Asia and Europe, due to the U.S. tariff war against Canada.
  • Ontario Premier Doug Ford has sought to repair his relationship with Alberta Premier Danielle Smith, who he has previously criticized for her handling of trade issues and her stance on Alberta secession.

Statistics:

  • 500 kilometers: the distance northeast of Thunder Bay where the mining development in the Ring of Fire is located.
  • 40%: the increase in the federal government's size during the previous administration, according to Ontario Premier Doug Ford.
  • 10 years: the amount of time since the federal government has had a business approach, according to Ford.
  • 2019: the year the oil tanker moratorium was put in place.
  • 1: the single shovel-ready project that critics, including B.C. Premier David Eby, would prefer to see instead of a new oil pipeline.

Sources:

  • Calgary Herald (interview with Prime Minister Mark Carney)
  • Toronto Star
  • The Canadian Press (Jeff McIntosh/ THE CANADIAN PRESS)
  • Press conference with Ontario Premier Doug Ford and Alberta Premier Danielle Smith
  • Memorandums of understanding between Ontario and Alberta
  • Bill C-5, the One Canadian Economy Act
  • Ontario Bill 5, the Protect Ontario by Unleashing our Economy Act
  • Text of the "co-operation" Memorandum of Understanding