Prime Minister Mark Carney recently announced five major projects that the federal government plans to fast-track. However, none of these projects include new oil pipelines for western Canada or Alberta. The government cited a lack of private developers willing to finance or build such pipelines as the reason for this omission. Critics argue that this reluctance stems from the energy policies implemented under former Prime Minister Justin Trudeau, which they claim have deterred investment in the oil and gas sector.

The Carney government has introduced Bill C-5, known as the “Building Canada Act,” which grants the federal cabinet broad powers to bypass existing laws and regulations for projects deemed in the national interest. This has raised concerns about the criteria used to select projects, as critics believe it allows the government to favor certain initiatives over others without clear justification.

Over the past decade, federal policies have significantly impacted Canada’s energy sector. Key regulations include Bill C-69, which established the federal “Impact Assessment Act,” and the West Coast tanker ban outlined in Bill C-48. These measures have been criticized for creating barriers to energy investment and development, affecting not only energy-producing provinces but the entire country.

The cancellation of the Northern Gateway pipeline, which was approved to transport crude oil from Alberta to British Columbia, is another example of how regulatory changes have hindered energy projects. Additionally, the Trans Mountain pipeline, which was taken over by the federal government after private investors withdrew due to regulatory challenges, has seen costs balloon to $34 billion, far exceeding initial estimates.

Investment in the oil and gas sector has declined sharply, with a 56 percent drop in inflation-adjusted investment from 2014 to 2023, falling from $84 billion to $37.2 billion. This decline has serious implications for Alberta, where the energy sector is a crucial part of the economy. However, the effects are felt nationwide, as Alberta has contributed $244.6 billion to federal finances from 2007 to 2022.

Currently, 97 percent of Canada’s oil exports go to the United States, making the country vulnerable to shifts in U.S. policy. Expanding pipeline infrastructure to both the east and west could help diversify export markets and enhance energy security.

The Carney government's recent project list has been viewed as a setback for western Canada, particularly Alberta. Critics argue that the lack of new oil pipeline projects reflects the ongoing impact of previous federal energy policies. They call for a reassessment of these policies to enable the private sector to invest in Canada’s energy potential.