Latest updates: Alberta signs agreement with Carney government paving the way for oil pipeline through B.C.

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The prime minister is very clearly endorsing a new oil pipeline to the coast with this agreement.

He says it's crucial for Canada's economic development — and it's something that can be done relatively cleanly because both sides are going all-in on a multibillion-dollar carbon capture project, Pathways Plus.

"At the core of the agreement, of course, is a priority to have a pipeline to Asia," Carney just told reporters at the signing ceremony with Smith.

"That's going to make Canada stronger, more independent, more resilient, more sustainable because the way we're going to do that is in combination with the Pathways project, the largest carbon capture project in the world.

"It will mean Alberta's barrels of bitumen are among the lowest energy intensive in the world and therefore competitive not just for tomorrow but for decades," Carney said.

‘This is Canada working,’ Carney, Smith meet ahead of MOU energy infrastructure signing

Prime Minister Mark Carney and Alberta Premier Danielle Smith met in Calgary on Thursday to share their priorities before signing a memorandum of understanding, which will aim to develop infrastructure to increase natural resource production in western Canada

Prime Minister Mark Carney and Alberta Premier Danielle Smith have just appeared before the cameras in Calgary.

"This is the first step I think of what will be a few more steps we will have to take together, but I'm very pleased that the prime minister has heard our concerns and responded," Smith said, noting her government has worked for some time to try to remove "bad laws" she says hinders Alberta's economic growth.

"I'm pleased that we’ve reached an agreement to substantially work on removing and revising those laws," Smith said. "This is a great day for Albertans."

Carney said: "It's a great day for Alberta; it's a great day for Canada."

While many First Nations in B.C., including the Coastal First Nations alliance, have said they oppose a new pipeline due to environmental and treaty issues, First Nations in Alberta have been much quieter so far.

However, some have taken a position.

Chief Raymond Powder of Fort McKay First Nation, about 55 kilometres north of Fort McMurray, has previously indicated his support for a pipeline and said the community has been engaged in the process “from the very beginning.”

Hi, I’m a reporter based in Fort McMurray, Alta.

Today's expected announcement is huge news for the community I cover, as the region carries much of the economic weight of oilsands development.

Dianna De Sousa, CEO of the Fort McMurray Chamber Of Commerce, told me this week the MOU could strengthen business confidence and support long-term oilsands investment.

“It could lead to new spending in the region — not just in energy, but in construction, services, transportation and a range of local sectors,” she said in a statement.

The region’s mayor, Sandy Bowman, said he is feeling optimistic about the announcement.

“When there is additional pipeline capacity, it increases prosperity for industry and workers, advances social benefits for everyone, and creates opportunities for better relationships with Indigenous and all communities in growing a more sustainable economy.”

You may be wondering whether the expected changes today might lead to a flood of investment in Alberta’s oil and gas industry, which hasn’t seen a new major oilsands facility open since 2018.

The relaxing of various environmental regulations is something Alberta’s provincial government, along with various oil and gas companies, have been advocating for a long time.

But experts say there’s still a way to go.

Don’t forget that the price of oil has dropped. That’s a huge factor companies will take into account when it comes to any investment.

They will also want to know how they’re going to get their product to market. It’ll be some time before clarity on that point emerges, too, no matter what gets announced today.

So, the short answer here is that there aren’t any short-term solutions to what are some really big challenges.

Part of the reason Smith wants a new export pipeline is to keep growing the province's oil industry.

A bigger oilpatch means more jobs, more economic activity and more cash for government coffers.

Alberta's deficit was initially $1.3B in the February budget, then grew to $6.5B by summer and has likely swelled even further with weak oil and natural gas prices.

We'll know how bad the numbers are now looking when the government gives a fiscal update later today.

As details emerge regarding the wide-ranging Alberta-Canada agreement, let’s look at Canada's major crude pipelines.

Right now, there is only one major crude pipeline going west, the Trans Mountain pipeline, a project first purchased by the federal government for $4.5 billion in 2018 and whose final price tag was $34 billion when it was completed in 2024. It’s also worth noting all other pipelines going east to coastal waters have some segments that go through the U.S.

Carney and Smith want a new B.C. Pipeline. Do energy companies?

Prime Minister Mark Carney and Alberta Premier Danielle Smith are moving closer to reaching a deal on the future of Alberta's energy sector, according to a senior government official. Former TransCanada executive Dennis McConaghy joins us to talk about whether that makes sense when there are still opportunities to expand existing pipelines — saying the 'devil is in the details.'

It's a big question and there isn't a straightforward answer.

Oil production is at a record high and keeps growing in Western Canada. Some experts anticipate the export pipelines will fill up in the next three to five years.

At the same time, companies like Trans Mountain and Enbridge are planning several expansions to their existing pipelines to transport more oil through those systems.

If Smith wants a new export pipeline, a key test will be whether enough of the major oil-producing companies sign long-term contracts to actually use the proposed project.

A new pipeline could also encourage companies to keep ramping up production, according to BMO Capital Markets analyst Randy Ollenberge.

"I think the industry would follow through, make those investments and it would generate positive economic growth from Canada," he said in an interview.

If news of this MOU on an oil pipeline through B.C. Is giving you a bit of déjà vu, you’re not alone.

There are some striking similarities between the current situation and what went down the last time a project like this was proposed — namely, the Northern Gateway pipeline.

That project also started with an MOU, way back in 2005.

What followed was a long and fractious debate over the economy, the environment and the constitutional foundations of the country. Over that time, Canadians witnessed passionate protests, oil spills, landmark court decisions, governments rise and fall, the involvement of the national spy agency and even a Tim Hortons boycott.

The BBC described the whole saga as a “fight for Canada’s soul.”

Opposition from First Nations in Alberta is related to the Pathways carbon capture project, which Carney wants to see developed before any new pipeline is built.

I spoke with some First Nations in the province’s northeast — where the project is expected to be built — who are concerned about its safety and are demanding a meeting with industry and government leaders.

"It’s frustrating when people are having talks and we're absent from the table," says Cold Lake First Nations Chief Kelsey Jacko.

"At the end of the day, that's all we were asking for: Is it safe?" says Whitefish Lake First Nation Chief Herb Jackson.

At the same time, there are many Indigenous groups who support a new oil export pipeline and would want an ownership stake in it. Many of them gathered in Calgary this week at a conference called Unlock the Pipeline Gridlock.

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