Alberta Premier Danielle Smith has issued a stark warning and a firm deadline to the federal government, demanding the approval of a major new heavy oil pipeline to the Pacific Coast by this fall. The call to action comes in direct response to recent geopolitical upheaval in Venezuela, which Smith argues poses a severe and immediate threat to Canada's position in the global energy market.
Urgent Appeal to Ottawa Following Geopolitical Shock
The urgency stems from a dramatic shift in the global energy landscape following a U.S.-backed military incursion into Venezuela last weekend. The operation led to the capture of socialist leader Nicolas Maduro and signalled a clear American intent to secure control over Venezuela's vast reserves of heavy crude oil. U.S. President Donald Trump has stated that American energy multinationals are prepared to invest up to $100 billion to revitalize Venezuelan production.
Premier Smith highlighted this development as a critical risk for Alberta and Canada during a discussion with Prime Minister Mark Carney on Friday, January 2, 2026. She later elaborated on the social media platform X, writing, "Today, I had a positive meeting with (Carney) during which we discussed the recent events in Venezuela, and how they underscore the necessity to greatly expedite the approval of a one million barrel per day oil pipeline to Canada's Pacific coast."
A Concrete Timeline and a Clear Warning
Smith has laid out a specific timeline for the project. Her government plans to submit a formal application for the pipeline, which would terminate in northwest British Columbia, by June 2026 "at the latest." She has explicitly asked the federal government to grant its approval "no later than this Fall."
In a letter sent to Prime Minister Carney a day before their meeting, Smith emphasized that any delay or hesitation from Ottawa would have serious consequences. She warned that failing to act swiftly risks "ceding market share, losing investment, and undermining Canada’s competitive position in a rapidly changing global energy landscape."
The core of the threat lies in the similarity between Canadian and Venezuelan oil. Both countries produce similar grades of heavy crude, meaning a flood of Venezuelan oil onto the market could directly displace Canadian barrels currently processed in U.S. refineries. The financial markets have already reacted to this possibility; Canadian energy stocks lost a staggering $8 billion in market value in the four days following news of the Venezuela incursion.
The Stakes for Canada's Energy Exports
The push for a new West Coast pipeline is fundamentally about market diversification. Currently, the United States is the overwhelming destination for Canadian oil exports, purchasing more than 90 percent of all shipments. This dependency makes Canada exceptionally vulnerable to U.S. policy shifts and market changes.
A pipeline to tidewater in British Columbia would open access to markets in Asia and beyond, providing a crucial alternative to the U.S. monopoly. Premier Smith's argument is that the Venezuela situation has transformed this long-discussed project from a strategic goal into an economic imperative. The prospect of a U.S.-controlled Venezuela aggressively ramping up heavy oil production creates a new and powerful competitor that could permanently erode Canada's standing if the country cannot efficiently reach new customers.
The ball is now in the federal government's court. The coming months will reveal whether Ottawa agrees with Premier Smith's assessment of the crisis and her proposed solution, setting the stage for a pivotal decision on Canada's energy future this autumn.
