Canada’s Oil Shift: Trans Mountain Expansion Fuels Pipeline Revival

Since the completion of Canada’s $34 billion Trans Mountain pipeline expansion in May, 2024, tankers carrying oilsands crude have been departing Vancouver for refineries in China, Japan, and other Pacific markets. This marks a major shift for Canada, which has historically relied almost exclusively on the U.S. for oil exports.

The project’s success is fueling discussions about reviving two previously scrapped pipelines: Energy East (which would send oil to Ontario and Quebec without passing through the U.S.) and Northern Gateway (which would connect Alberta’s oilsands to a Pacific port in British Columbia). With growing tensions between Canada and the U.S., including former President Trump’s trade threats, there’s renewed urgency to reduce dependence on ?the US buyers.

However, the challenges remain steep. Environmental groups, Indigenous communities, and regulatory hurdles have long obstructed new pipeline projects. The Trans Mountain expansion itself saw its cost balloon to six times its original estimate, with Canadian taxpayers footing the bill after the government bought it in 2018 to prevent cancellation.

Despite these challenges, some industry leaders, like Strathcona Resources’ Adam Waterous, believe Canada should push forward, even calling for an “energy emergency” to fast-track pipeline approvals. While companies like Enbridge remain hesitant, the debate over Canada’s energy future is heating up. Canada must seize this moment to reshape its oil industry, now, collaboratively and not keep new projects on ice.

For a full story, please visit Bloomberg’s, Robert Tuttle “ Canada eyes more ways to ship oil to China as U.S. threatens trade”? Published Feb 05, 2025?????4 minute read

Have a propserous day!

John Rudnick