U.S. President Donald Trump signed an executive order this week that paves the way for the construction of a pipeline designed to carry Canadian crude from Hardisty, Alberta, to Wyoming. This pipeline, known as the Bridger Pipeline Project, has a capacity of one million barrels of heavy crude per day, which would increase exports by 12 percent. Initially, it is expected to export about half that amount. The route mirrors but does not replicate the path of the defunct Keystone XL pipeline. Had former president Joe Biden not scrapped that project in 2021, it would already be operational and helping to alleviate the current energy crunch.
Lessons from global crises
The blockade of the Strait of Hormuz and Russia's invasion of Ukraine in 2022 have demonstrated just how vital energy security is to Western democracies. European nations have been forced to reassess their reliance on Russia for energy. While some argue that these events highlight the need to accelerate the transition to electric vehicles, the reality is that the world still depends heavily on oil and gas. Charging an electric vehicle may save money and offer environmental benefits, but it does not change the fact that most goods are transported by diesel-powered trucks. Moreover, the world is still far from solar-powered airplanes, and airlines globally are cancelling thousands of flights due to fuel shortages.
Canada must diversify
Trump recently stated that the U.S. does not need anything from Canada, including its oil, but recent events prove otherwise. The new executive order allows the Bridger Pipeline Project to build and maintain pipeline facilities at the border. While this is a positive step, Canada must diversify its export routes. The country needs alternative ways to sell its oil and gas, not because of Trump, but because a future president might arbitrarily cut off export means, as Biden did. Building pipelines to the West Coast would allow Canada to export energy resources to global markets.
Obstacles to economic success
The B.C. government's opposition to pipelines remains the biggest obstacle to Canada's economic prosperity. It must stop looking inward and view the world as it is, not as politicians wish it to be. Recent events have shown that the world runs on oil and gas, not on sunshine. Wishful thinking will not deliver prosperity; practical energy policies are essential.
