Another oilsands boom? Smith, Carney say this time Canada will be ready

After a relatively quiet decade in the Alberta oilsands, federal and provincial governments believe a new West Coast pipeline and policy shifts could boost activity. Prime Minister Carney announced the first proposal deemed nationally important: the Pacific Link pipeline from Alberta to a B.C. tanker export terminal, capable of transporting a million barrels per day.

The designation means the proposal will undergo a simplified review process. Carney emphasized sustained growth rather than a boom, unlike the previous 2000s oil surge marked by cost inflation, labour scarcity, and housing shortages. Oilsands companies have recently focused on enhancing existing operations instead of large-scale megaprojects due to factors like limited pipeline capacity, regulatory complexities, and environmental concerns.

However, global crude price volatility following the 2022 Middle East war and the COVID-19 pandemic's demand collapse have spurred renewed interest. Carney noted that local mayors and First Nations leaders are contributing to more inclusive economic benefits, while recent innovation improvements in production methods reduce the need for large, transient worker populations.

Alberta Premier Smith highlighted infrastructure improvements for workers, like upgrading Highway 881, to accommodate potential production growth. Industry experts point to increased efficiency and alignment within the Alberta oilpatch, with more production-sharing and reduced competition among producers. However, concerns over worker availability persist, especially as multiple major projects—like Pacific Link, new oilsands developments, and other infrastructure—are underway.