Released December 02, 2025 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land Texas)
Alberta Premier Danielle Smith backed a new crude oil pipeline for the western coast amid the height of bilateral trade tensions with the U.S. government. The U.S. economy is the main destination for Canadian exports, though tariffs imposed by U.S. President Donald Trump have led Canadian officials to press for more non-U.S. trade.
Last week, Smith's administration announced that the federal government in Ottawa declared that a pipeline, co-owned by Canada's indigenous community, was a project of national interest.
"This is Alberta's moment of opportunity to take the first steps toward being a global energy superpower and show the nation that resource development and sustainability can coexist," Smith said.
Details on volumes were laid out for the first time. Alberta's government said the new network would be an expansion to the existing Trans Mountain network and accommodate as much as 400,000 barrels per day (BBL/d).
Commenting on the arrangement, Canadian Prime Minister Mark Carney said U.S. trade policies have led to major upheavals for the Canadian economy. Rather than court the U.S. president, Carney said he was eager to diversify exports and build up Canada's global reputation for energy.
"We want to build big things, and we're building bigger and faster together," he said.
British Columbia's government, however, has already backed dredging near the Trans Mountain terminal in the province.
West Canadian Select is a heavy, sour crude oil, and helps position Canada as the top foreign crude oil supplier to the U.S. economy. Much of that goes to facilities such as BP's (London, England) refinery in Whiting, Indiana, centered in PADD II, the U.S. Midwest.
Through September, federal Canadian data show U.S. crude oil exports averaged 3.45 million barrels per day (BBL/d), 4.2% above year-ago levels. Exports to the U.S. economy have increased every year since at least 2015.
From timber to crude oil, the export-dependent Canadian economy is tied largely to the United States. Carney, however, has already announced a new partnership with Germany on critical minerals, and similar deals with Sweden. Canada's low-carbon steel could find a home overseas, particularly as governments such as those in Europe look to impose extra duties on carbon-intensive imports,
So far in his first full year in office, Carney's administration has allocated some US$11.4 billion for nation-building projects. His aim is to halve the amount of U.S. trade during the next decade.
Key Takeaways
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Summary
Provincial and federal leaders included an expansion to an existing pipeline to British Columbia as a national priority. Amid declining U.S. ties, Canada aims to tap the markets in Asia.Even Bigger Trans Mountain
The provincial government of Alberta said it reached an agreement with federal leaders for additional expansions to the Trans Mountain crude oil pipeline to accommodate additional exports to Asia.Alberta Premier Danielle Smith backed a new crude oil pipeline for the western coast amid the height of bilateral trade tensions with the U.S. government. The U.S. economy is the main destination for Canadian exports, though tariffs imposed by U.S. President Donald Trump have led Canadian officials to press for more non-U.S. trade.
Last week, Smith's administration announced that the federal government in Ottawa declared that a pipeline, co-owned by Canada's indigenous community, was a project of national interest.
"This is Alberta's moment of opportunity to take the first steps toward being a global energy superpower and show the nation that resource development and sustainability can coexist," Smith said.
Details on volumes were laid out for the first time. Alberta's government said the new network would be an expansion to the existing Trans Mountain network and accommodate as much as 400,000 barrels per day (BBL/d).
Commenting on the arrangement, Canadian Prime Minister Mark Carney said U.S. trade policies have led to major upheavals for the Canadian economy. Rather than court the U.S. president, Carney said he was eager to diversify exports and build up Canada's global reputation for energy.
"We want to build big things, and we're building bigger and faster together," he said.
Not Everyone Was Pleased
Early proposals for what could've been an entirely new pipeline were met by opposition from British Columbia's government, which was concerned about tanker traffic off its coast. Steven Guilbeault, a former Greenpeace activist, stepped aside as the Canadian culture minister following the agreement with Alberta, though he'll stay on as a member of Parliament.British Columbia's government, however, has already backed dredging near the Trans Mountain terminal in the province.
West Canadian Select is a heavy, sour crude oil, and helps position Canada as the top foreign crude oil supplier to the U.S. economy. Much of that goes to facilities such as BP's (London, England) refinery in Whiting, Indiana, centered in PADD II, the U.S. Midwest.
Through September, federal Canadian data show U.S. crude oil exports averaged 3.45 million barrels per day (BBL/d), 4.2% above year-ago levels. Exports to the U.S. economy have increased every year since at least 2015.
From timber to crude oil, the export-dependent Canadian economy is tied largely to the United States. Carney, however, has already announced a new partnership with Germany on critical minerals, and similar deals with Sweden. Canada's low-carbon steel could find a home overseas, particularly as governments such as those in Europe look to impose extra duties on carbon-intensive imports,
So far in his first full year in office, Carney's administration has allocated some US$11.4 billion for nation-building projects. His aim is to halve the amount of U.S. trade during the next decade.
Key Takeaways
- Trans Mountain could be expanded again
- Alberta and Ottawa shake hands on energy
- Canada wants to halve U.S. trade
- $11.4 billion in nation-building projects
- 300,000-plus BBL/d could be added to Trans Mountain
- 3.45 million BBL/d sent to U.S. economy on average to September
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
