Full Comment - October 05, 2026


Don’t wait up for history’s costliest hypothetical pipeline

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What was B.C.’s David Eby thinking by calling the maddest Canadian election ever?

Episode Stats


Length

49 minutes

Words per minute

162.33

Word count

8,023

Sentence count

427

Harmful content

Misogyny

1

sentences flagged

Toxicity

3

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Hate speech

4

sentences flagged


Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Toxicity classifications generated with s-nlp/roberta_toxicity_classifier .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
Hosts, guests, and mentioned names generated with spaCy (en_core_web_sm), reconciled against Wikidata.
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00:01:20.900 The Canadian taxpayer is going to make a lot of money off this pipeline.
00:01:24.900 Canadian Prime Minister Mark Carney announcing a new pipeline, sort of, kind of, in Fort McBury, Alberta last week.
00:01:32.800 Hello, welcome to the Full Comment Podcast. My name's Brian Lilly, your host.
00:01:36.340 This pipeline announcement, part of a process that's been going on for about a year now,
00:01:41.840 trying to find out if the federal government can declare this pipeline from Alberta to BC's West Coast a project of national interest.
00:01:51.300 Today, we're ready to move forward for Albertans, for Canadians.
00:01:57.360 And I'm proud to announce that the government of Canada is officially listing the West Coast Pipeline,
00:02:03.720 now known as Pacific Link, as a project of national interest.
00:02:10.140 You can hear Danielle Smith clapping in the background there.
00:02:13.260 Alberta's premier, clearly someone who was happy.
00:02:16.500 One year ago, this project was a vision.
00:02:19.240 Today, it has a clear path forward.
00:02:21.300 Today, we will make Canada an energy superpower.
00:02:24.680 What is that path forward?
00:02:26.280 And is it a clear path forward?
00:02:28.640 Joining me to talk about this are two fellow columnists with Post Media.
00:02:32.640 Lauren Gunter is with the Edmonton Sun.
00:02:34.540 He's been covering politics since Moses was in short pants, and so was Lauren.
00:02:39.120 Chris Varco has been covering the energy industry since the 1990s and knows it well.
00:02:43.920 So since you covered the energy industry, Chris, let me start with you.
00:02:48.720 What is this announcement and what isn't it?
00:02:52.960 Well, that's a good question because what it is, is it's a fast track for approvals at the end of the day.
00:02:59.980 What the government here has done is basically said that they will set the conditions or the regulators will set the conditions for this new pipeline to the West Coast by September 2027.
00:03:11.760 which is a fast track compared to where we've been in the previous years where it's taken two
00:03:16.760 three four years to get to that point in time so presumably by september 1st 2027 they will know
00:03:23.720 what the conditions are to get this project going what it isn't is it's not an approval it's not a
00:03:30.460 final investment decision by the proponents which are the governments of canada the government of
00:03:35.080 alberta and pamina pipeline it also is not a commitment by producers to put oil in the pipeline
00:03:40.360 yet. So there's a lot of road here to be traveled before we even get to a final investment decision.
00:03:47.880 Can you give us a quick description of what this commitment document that they talk about,
00:03:57.380 that they have to get to by the end of the year, what that is all about? Because when I looked it
00:04:02.820 up. Northern Gateway, when it was approved in November or December 2013, it had a list of 209
00:04:11.400 conditions. Sorry, it's a conditions document. You could end up with a list that makes it impossible
00:04:18.600 to build as of next September. I don't think that's the government's intent, but if bureaucrats
00:04:24.040 are involved, who knows? So what exactly is the conditions document that they have to get to?
00:04:29.240 Well, what the regulators will do, and in this case, this will be the Canada Energy Regulator, along with the Major Projects Office.
00:04:35.380 They will do an environmental review.
00:04:37.840 They will look at the routing.
00:04:39.200 They will look at all the economic and environmental conditions.
00:04:42.280 They will also do consultations with landowners, with Indigenous communities, with other affected stakeholders.
00:04:48.840 Then, presumably, we will see a list of conditions that will say, you can build it if you meet all of these various criterias.
00:04:57.500 And that's what we saw with Northern Gateway, which you referenced. Trans Mountain saw the same thing with the expansion project. So these are the conditions that you have to meet in order to build it. And then at that point, presumably, the proponents will make a decision. Do you go or no go?
00:05:13.160 So, Lauren, that doesn't sound to me like what Mark Carney promised during the last election and said he would deliver in his victory speech on election night when he said we will need to think big, act bigger.
00:05:29.240 We will need to do things previously thought impossible at speeds we haven't seen in generations.
00:05:34.420 Chris is right.
00:05:35.400 It's speeding it up.
00:05:36.380 But this is still an incredibly long process.
00:05:39.080 It's it's almost a year and a half since Mark Carney won that election saying, let's do fast things.
00:05:47.740 And we're only at the point where we're saying, OK, in 11 months, we'll tell you, here's the conditions for you to do it.
00:05:55.920 Yeah. And, you know, this is just one more stack of paper in the process.
00:06:00.160 So last November, you had the prime minister and Alberta premier, Danielle Smith, sign a memorandum of understanding.
00:06:08.560 Oh, my goodness. Wow, this is wonderful. There's going to be a pipeline because we have a memorandum of understanding. And then in June, the provincial government put forward its outline of what the pipeline would look like and presumably what it would cost.
00:06:24.600 And, oh, isn't that marvelous? Now we have more concrete paper on this.
00:06:31.060 And this is, to me, it's just yet another paper affirmation that the pipeline will be built at some time, maybe.
00:06:41.580 That's the best we have right now, though, is maybe, isn't it?
00:06:44.780 Yep. And, you know, there are some significant parts of this that are pleasing.
00:06:51.340 For instance, it's the first project declared in the national interest by the major projects office.
00:06:58.420 Who would ever have guessed that a liberal federal government would approve a pipeline as their number one national interest project for Alberta?
00:07:10.420 That's staggering, but there's still, there isn't a shovel in the ground.
00:07:15.300 I think if I went out to Bruderheim, which is just north and east of Edmonton here where the pipeline will start, and I started digging around, the Mounties would be there fairly quickly to say, what in heaven's name are you doing?
00:07:27.700 Because there isn't any real construction happening yet.
00:07:33.260 Chris, once we get to that conditions document, let's say that they do get approval, they get the conditions document, Premier Smith was saying she's hopeful that, you know, we could start construction next year, even with a short list of conditions.
00:07:51.200 Do you have an estimate, a best guess on how long it might take to actually start putting those shovels in the ground after the document is released in September of 2027?
00:08:06.940 When I spoke with her yesterday, she said, you know, they would like to see shovels in the ground almost immediately.
00:08:13.420 So we're talking the fall of next year.
00:08:16.240 That seems like a very rapid timeline.
00:08:18.640 As I said, there's a lot of other things that have to happen here.
00:08:21.760 Like we're talking about the regulatory approval process.
00:08:24.800 But we haven't actually gotten to the economics of this yet.
00:08:27.600 And that's the question of how much does it actually cost to build another pipeline from Bruderheim all the way down into southern British Columbia?
00:08:35.020 The last time that happened was with the Trans Mountain expansion.
00:08:37.780 And that cost a lot more money than anyone ever anticipated, right?
00:08:41.740 $34 billion.
00:08:43.260 This project, estimated, is supposed to cost $35 to $44 billion.
00:08:49.360 So now you have to figure out, well, what are the tolls for the shippers?
00:08:52.560 There's companies here that have to actually make long-term 20, 25-year commitments
00:08:57.360 based upon what is the cost to build that project
00:09:00.220 and what does it cost to move the oil through that pipeline.
00:09:03.400 So we can talk about the politics or the regulatory approval all day long,
00:09:07.580 but the economics at the end of the day have to make sense
00:09:10.180 or nobody's going to put their oil in that pipeline.
00:09:12.660 I guess it might help that at the moment, Western Canadian Select is trading at $80.52, which is quite a bit higher than it was, say, in the spring of 2025 when the province was looking at an absolute shattering of their budget and deficit.
00:09:34.460 But I'm not sure that's a long-term sustainable price. How much of the cost increase on Trans Mountain was a result, though, of endless consultations, protests, the government of the day not really caring that those protesters were getting in the way, that they were blocking construction.
00:09:59.120 This government doesn't seem like, you know, if it goes forward, that they're going to be willing to sit there and say, you know what, keep blocking that bulldozer.
00:10:07.280 We'll tell the RCMP to stand down.
00:10:10.280 There were a lot of reasons why that project went over budget, and maybe one of the biggest ones was the endless delays.
00:10:16.920 You may remember that the federal government botched the consultation process and then had to go back and redo it.
00:10:24.080 That took an entire year out of the schedule, at which point money had already been spent.
00:10:28.560 There was also delays that were connected to COVID, to workforce.
00:10:31.920 There were all kinds of delays.
00:10:33.180 That project took more than a decade from the time that it was proposed to the regulator to the time that it was actually built.
00:10:39.640 So there were lots of reasons why that project ran over budget.
00:10:43.660 What are your thoughts on the politics of that side, Lorne?
00:10:47.000 One of the other reasons there were delays is that the federal government entertained every cork challenge there was from environmentalists and indigenous groups.
00:10:57.320 and through almost every case. They didn't make their best arguments. They sometimes would take
00:11:04.480 a lower court judgment to appeal. And the whole process just dragged out because the
00:11:10.420 environmentalists and the First Nations who were opposed. And it's always very important in these
00:11:16.280 pipeline discussions to understand that there are First Nations who like the project and are quite
00:11:21.760 happy to be involved in it as equity partners. And there are First Nations that don't like it.
00:11:26.760 So by entertaining all of these lawsuits from environmentalists and First Nations who are resistant, that added probably another year and a half.
00:11:42.200 You talk about First Nations groups opposed and in support.
00:11:46.000 I know with the rain of fire here in Ontario, the media keeps focusing on the one group, which happens to be the furthest away from the actual rain of fire.
00:11:55.900 so the the one that will receive the least economic benefit but we've also seen over the
00:12:02.340 years lauren um greenwashing of different groups foreign money coming in do you when russia was
00:12:11.920 doing that over a decade ago they weren't distracted by a war with ukraine that they're
00:12:15.840 not doing particularly well in do you see the saudis or the russians or anybody else saying
00:12:22.300 you know what, we can fund some groups up there, or maybe Tides Foundation and Tom Steyer
00:12:27.420 decide that they're going to do it. Do you expect to see that kind of opposition being foreign 0.95
00:12:33.400 funded yet again? Yeah, sure, I do. Now, I don't think it will go as far as it did last time,
00:12:39.920 because it kind of caught everyone off guard. I think the people who are behind this in the
00:12:45.820 provincial and the federal government are much more aware that those tactics are going to be
00:12:50.000 attempted. And I hope they'll be ready for them. I can't guarantee they'll be ready for them.
00:12:56.640 But, you know, I think that the biggest opposition will come from foreign-funded First Nations, 0.93
00:13:04.220 because as soon as a First Nation says, oh, my goodness, you're going to destroy our 0.74
00:13:09.300 traditional hunting grounds, there's a reporter and a crew from CBC in particular who rush out
00:13:17.280 and hear them. If you remember the coastal gas leak, which was the LNG pipeline that was running
00:13:23.660 from northeastern BC down to the central coast of BC, there were lots of protests against and
00:13:33.120 there were several chiefs who were opposed to it. But it turned out that every elected chief,
00:13:38.100 most of the First Nations along the route had an elected chief and a hereditary chief. And all of
00:13:43.900 the elected chiefs had signed on, and it was only hereditary chiefs, many of whom were not really
00:13:49.480 hereditary. They'd been simply appointed to their positions. They were opposed, and yet Trudeau
00:13:55.840 went out and he met with the hereditary chiefs, and there were endless reports from the Globe and
00:14:01.280 Mail and Toronto Star and the CBC about how these poor First Nations people were being jobbed by
00:14:08.100 big oil companies. That's what they have to worry about. That's what they have to fight against.
00:14:13.900 chris let me ask you about the economics of um the pathways project to me this was when the
00:14:23.160 industry was going along with the idea of capturing carbon capture and storage a few years ago
00:14:28.420 you know you would hear people say yes well the industry supports this project or the industry
00:14:34.940 supports a carbon tax my view was always they didn't really support it but they tell you they
00:14:41.620 would if you would approve their project it was a bit like the dane geld they'll pay it if they
00:14:46.420 have to what's industry telling you now in terms of the economics of still going forward with
00:14:54.840 pathways to get this pipeline approved well i think the industry first off is not in favor of
00:15:03.140 an industrial carbon tax and they've made that pretty clear over the last six months
00:15:07.240 So that's sort of the starting point.
00:15:09.160 The separate point is that they are willing to go ahead, I think, with the Pathways project,
00:15:14.180 particularly if the economics are there for them to increase their production into the oil pipeline.
00:15:19.840 Remember, these two projects have been linked by the Kearney government that they both have to go ahead.
00:15:24.680 In other words, you get no pipeline if you don't get Pathways.
00:15:27.880 So that basically means that you need to have the production to fill that pipeline.
00:15:31.720 And both the federal government with some of its tax incentives and the provincial government,
00:15:36.080 which is going to change the royalty rules, are going to try and incent that production.
00:15:40.880 So these things will all kind of work together as a sort of as an economic sort of tie in.
00:15:47.240 But I don't think you can separate one from the other.
00:15:49.240 This is all part of a big basket.
00:15:51.200 And so the industry views it as a basket.
00:15:53.660 And that's what they're willing to proceed with.
00:15:56.080 I mean, but they were lobbying to try and get pathways dumped.
00:16:01.200 I think if they they know that the Kearney government is linking it.
00:16:04.480 But am I incorrect to believe that if they had their druthers, it would just be a pipeline and not a carbon capture and storage project attached to it?
00:16:14.980 Oh, absolutely. I agree with that.
00:16:16.400 I think they see pathways as an additional cost that they're going to face that virtually no other industry other than maybe in Norway will face.
00:16:24.860 They also think that if there was no pathways, they could invest money in the pipeline.
00:16:31.820 But one of the things that wasn't mentioned yesterday in the Fort McMurray announcement is that there are no private investors yet for the Pacific Link pipeline.
00:16:41.380 And it could cost $44 billion.
00:16:43.080 I think it would cost more than $44 billion.
00:16:45.260 If Trans Mountain costs $34 and we're now further down the road inflation-wise, this could easily cost $55 billion.
00:16:53.640 And you might get some private investment for that if they weren't also being required to put $20 billion into carbon capture.
00:17:02.980 But when you put those two together, there's an oil company in the world that wants to put that kind of money into something.
00:17:09.620 Let me ask you both about that part of this.
00:17:13.220 So they didn't spell it out in the news release that I read, but they said the government of Canada, government of Alberta, will jointly own it.
00:17:20.820 10% will go to First Nations communities along the route.
00:17:24.900 So, you know, I'm taking it that it's going to be 45% federal, 45% provincial until I know otherwise.
00:17:34.760 There was a time when private sector companies lined up.
00:17:38.540 Is it just what you were talking about, Lauren, the Pathways Project?
00:17:41.780 or is it that we haven't done the regulatory work to make this oil patch and this pipeline
00:17:51.840 attractive as an investment? Because I'll tell you, when the investment summit was here in Toronto,
00:17:57.980 people were saying great things and they're saying, yeah, we love the new attitude. We love
00:18:02.480 the fresh approach. It's a lot nicer than the last guy. It's very interesting. And then there
00:18:09.720 was a but. And the but was Canada has not yet done the regulatory requirements, and this is across
00:18:16.800 all business, not just the oil and gas industry. You haven't done the heavy lifting to make things
00:18:22.540 attractive. Right. I mean, the companies that were involved in Energy East, Northern Gateway,
00:18:30.160 Keystone XL, all put in more than a billion dollars in getting through the regulatory process,
00:18:35.860 only to have all three of those pipelines canceled.
00:18:39.240 You're sitting in a CEO's office in a tower in Calgary,
00:18:45.980 and somebody's trying to get you to put money in.
00:18:48.720 You're going to think, no, we already did this once,
00:18:51.740 and we are not going to risk our shareholders' capital again
00:18:55.820 on a project that the next government or this government,
00:19:01.560 if it gets into trouble with its base, is going to cancel.
00:19:04.980 So there has to be some real proof that this is going to take place.
00:19:10.140 And I think that means that taxpayers, not shareholders, on the hook for all this.
00:19:16.280 I thought it was funny that Carney said in Fort McMurray, taxpayers are going to make a lot of money from this.
00:19:22.560 Yeah, maybe after a 30-year amortization of the costs.
00:19:26.700 I mean, there will be revenues coming in from transporting oil, as there is with Trans Mountain.
00:19:33.040 Trans Mountain's bringing in a couple billion dollars a year for Ottawa and similar amounts for Alberta and B.C.
00:19:43.600 But, you know, that doesn't include making payments on the pipeline.
00:19:50.620 So because governments don't have to make payments.
00:19:52.960 They already paid for it. 0.99
00:19:54.480 They jacked up taxes.
00:19:56.160 They took money from ordinary Canadians and they paid for the pipeline.
00:19:59.960 So I think they're thinking of the same model for this one.
00:20:03.900 And, you know, this could have been perhaps the most expensive week for taxpayers in Canadian history because also this week, Danielle Smith and Ontario Premier Doug Ford said that they wanted to rush ahead with the Northern Shield pipeline, which gets Canadian oil to Ontario without having it to go through Minnesota, Wisconsin, and Michigan.
00:20:26.040 and that's maybe $33 billion.
00:20:31.220 So I don't see any private investors lined up for that one either.
00:20:35.560 So what we're talking about here could be $80 billion
00:20:38.580 to taxpayers to build these two pipelines.
00:20:41.400 Given the ongoing threats from the Democratic governor of Michigan,
00:20:49.420 the court cases in Michigan, and everything else,
00:20:52.660 Ontario may have no choice but to build that pipeline eventually.
00:20:56.040 Because it appears that, you know, we're all worried about what the Republican resident of the White House is doing to Canadian trade.
00:21:03.760 And in Michigan, where we've long had really tight economic relations, they just want that pipeline gone.
00:21:12.300 They want line five done.
00:21:15.120 The government and her Democratic core want it done because they've convinced themselves it's a huge environmental danger.
00:21:24.300 But I don't think the average Michigander wants it gone.
00:21:28.840 I don't think they care one way or the other. 1.00
00:21:32.040 Chris, what were your thoughts on that Northern Shield announcement?
00:21:36.320 Because you were there when Premier Smith and Premier Ford were chatting about it in Calgary last week.
00:21:44.020 Does it feel to you like it's something real?
00:21:47.040 Were the people in the business audience taking it as real?
00:21:50.060 I know from speaking to Premier Ford that he's quite serious about it, but do people take him seriously in Calgary?
00:21:59.080 I think people in the industry take the Ontario Premier seriously, but I think you have to remember where this project is.
00:22:06.980 This was just floated as an idea that was going to have a feasibility study back in July during Stampede Week when Premier Ford and Premier Smith met here in Calgary.
00:22:15.440 and now they're basically moving that process along but they're still waiting for a feasibility
00:22:20.240 report so we don't have a really have a route we don't have obviously any proponents like this is
00:22:24.840 very early in the process and there are a number of other projects you know that are looking to
00:22:30.460 move ahead whether it's an expansion of the trans mountain system an expansion of the
00:22:34.040 enbridge mainline system there's another line which is basically going to sort of revive
00:22:38.380 parts of the old keystone excel project and then of course this west coast project so
00:22:43.320 So I think everyone in industry would view that this one is the furthest back in the planning process.
00:22:48.680 It's also probably got the most challenging economics.
00:22:51.820 I mean, if you think about the cost, that $34 billion to go to the West Coast with Northern Gateway, that was 1,200 kilometers.
00:22:59.060 This would be 3,300 kilometers, a lot of it going through Shield.
00:23:04.060 So the cost, I think, would probably be well in excess of that, probably in excess of $50 or $60 billion by the time that you got it built.
00:23:11.420 So the economics would be really challenged. Then you get into the question of, OK, who's going to pay for it and what are you paying for? Are you just looking at this as an economic prospect or are you investing in this for some other reasons, for national security, energy security reasons? And that's where sort of the risk calculus changes.
00:23:29.740 Yeah, well, I think it's all of the above for Ford. He doesn't like the idea that the Michigan governor is going to hold a gun to his head. And what did they say? Pearson would run out of jet fuel within seven days if the line was completely shut down and they didn't have an alternative.
00:23:49.600 Yeah, well, and think of all those dairy barns in Quebec that would be unheated in January because they don't have propane.
00:23:56.740 You still found a way to bring it back to supply management, Lauren.
00:24:00.820 That's amazing.
00:24:02.880 All right, we need to take a break.
00:24:04.380 When we come back, I do want to talk about some of the many wins that Ontario,
00:24:08.500 that Alberta Premier Danielle Smith has gotten over the last little while
00:24:12.080 and bring in the separatist angle to this.
00:24:15.800 We've talked about how Indigenous groups will oppose.
00:24:18.320 Well, how does the Alberta separation argument, vote, factor into this?
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00:27:20.160 So much is happening in politics right now.
00:27:23.080 Rising tensions with the U.S. on trade and defense.
00:27:26.400 Not one, but two provincial separatist movements gaining real ground.
00:27:30.460 The liberals trying to hang on to a razor-thin majority
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00:27:53.360 This is Tristan Hopper, the host of Canada Did What?
00:27:56.780 where we unpack the biggest, weirdest, and wildest political moments in Canadian history you thought you knew and tell you what really happened.
00:28:04.260 Stick around at the end of the episode to hear a sample of one of our favorite episodes from season two.
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00:28:16.120 Everywhere you get podcasts.
00:28:17.880 Alberta Premier Danielle Smith was clearly happy, as I said earlier,
00:28:21.260 when it came to the announcement in Fort McMurray.
00:28:24.160 Not a pipeline, but moving forward with one.
00:28:26.960 While she was giving her speech, though,
00:28:29.100 she took the time to list off all the wins that she's received over the last while,
00:28:34.020 and it's substantive.
00:28:35.840 So here she is talking about them.
00:28:37.800 Unfortunately, what you can't see is Mark Carney looking, well, uncomfortable behind her.
00:28:42.420 That agreement has delivered major wins for Alberta, including, of course, an agreement to advance an oil pipeline to Asian markets,
00:28:51.220 a commitment from the federal government not to proceed with a federal oil and gas emissions cap so that our energy producers can thrive again,
00:28:58.700 abeyance of the federal clean electricity regulations in Alberta, which would have placed our electrical grid at serious risk of failure
00:29:05.380 and limited our industry's ability to grow in the future,
00:29:09.340 an impact assessment agreement to streamline project reviews,
00:29:13.040 reduce duplication, and reinforce provincial jurisdiction,
00:29:16.540 suspension of the federal zero-emission vehicle mandate,
00:29:19.520 and, of course, removal of the greenwashing provisions in the Competition Act.
00:29:23.020 I mean, that's a lot of Ws for Premier Smith there.
00:29:26.700 She's done well out of this agreement.
00:29:29.120 Who wants to go first?
00:29:30.560 We can all agree that, you know, it's a good thing that the pipeline proposal, at least, is moving forward.
00:29:37.900 We can agree that it may take too long.
00:29:40.540 We can agree there should be public sector money behind it.
00:29:44.960 But I did not expect, even with Mark Carney saying things were going to change, that all the things the premier just listed would ever happen with a liberal government.
00:29:55.320 Did either of you expect what she listed off to be the current reality?
00:30:00.560 Well, I'll jump in first and just go back to the MOU last November. I think everyone was pretty surprised at the scope of all of the things that were included in that. The oil and gas emissions cap was obviously a big deal. The methane regulations, the Impact Assessment Act.
00:30:16.160 I think one of the sleeper ones in all that was the clean electricity regulations.
00:30:21.280 Those being put into abeyance means that the Alberta government can actually move forward on building or having industry build natural gas, fire, power plants.
00:30:30.980 That allows you to build an entirely new industry built around data centers.
00:30:35.120 So there were a lot of things in that aside from the pipeline and the pathways project.
00:30:39.520 And I think a lot of people in the industry were really surprised at how many items got included in that MOU.
00:30:47.220 Explain why that was important, Chris, the clean energy regulations.
00:30:53.180 And isn't Alberta's electricity grid mostly natural gas already?
00:30:58.780 I mean, I know you don't have the big hydro of BC or Quebec, but what powers the Alberta grid now?
00:31:06.320 Yeah, it used to be primarily coal-fired power going back about 10 years ago.
00:31:11.620 And the industry has been moving over to natural gas primarily, along with some renewables over the last 5 to 10 years.
00:31:19.480 Alberta's got a lot of natural gas, and that is going to continue to power the grid for years.
00:31:24.120 But with the clean electricity regulations that the Trudeau government put in, they basically had put a sunset period over when those projects had to stop operating.
00:31:32.640 And so that meant that industry wasn't prepared to build new gas plants.
00:31:37.280 So you were going to end up in this period where you were going to have some older plants come off, and then what was going to replace it?
00:31:42.320 That was a giant question for industry, and industry wasn't prepared to make an investment until they got some clarity on that.
00:31:48.040 So that's why it's important that the clean electricity regulations were included in that MOU, and that allows industry to build new gas firepower plants in the province.
00:31:57.380 Y'all got to go nuclear.
00:31:59.420 Finally, Saskatchewan is.
00:32:00.920 Just as an aside.
00:32:01.800 But after decades of digging the uranium out of the ground but refusing to build a nuclear plant, they're going to move forward with it, which is, I think, smart on their part.
00:32:12.440 Lauren, your thoughts on the long list that Premier Smith had.
00:32:17.020 You've been skeptical of the liberal government in Ottawa a long time.
00:32:21.980 Did it surprise you?
00:32:24.820 Oh, yeah.
00:32:25.440 Oh, absolutely.
00:32:26.080 And, you know, the reason it surprised me is that there aren't that many different faces in caucus than there were when Justin Trudeau was the prime minister.
00:32:38.020 And they were all behind, at least they all claimed to be behind, all of his green regulations.
00:32:45.640 And Stevanjibo was still in the caucus under Carney when most of this was announced.
00:32:52.300 And he was, of course, the big driver behind a lot of this.
00:32:56.080 He's now gone because of all these wins for Daniel Smith.
00:33:00.360 Exactly. And he tried very hard to take other people with him and they wouldn't go.
00:33:04.280 So politically, this has been easier to undo a lot of the Trudeau damage than I expected.
00:33:12.460 I think, as you said, Brian, we're still looking at an awful lot of companies that aren't prepared to invest until they know with certainty what's going to happen.
00:33:23.280 But, you know, the whole idea, we spent billions of dollars in the 20 teens in Alberta converting coal-fired power plants to natural gas.
00:33:35.840 And then Stevan Jibo comes along and says, no, no, no, no, no, natural gas is a dangerous fuel source.
00:33:43.060 So you have to go to wind turbines and solar farms and bug burps or whatever it is that, you know, he decided was going to work.
00:33:52.300 And it would never have worked.
00:33:53.900 We'd have ended up here.
00:33:55.400 We had two winters ago, we had a time when we had sustained temperatures of minus 30 or below.
00:34:03.460 And the wind farms all shut their turbines down because the blades can break at that temperature.
00:34:09.660 And so here we were with reduced energy, sort of brownouts.
00:34:15.260 It's not a big percentage of Alberta's energy production yet.
00:34:18.600 But it was big enough that when everyone was heating their homes, these wind turbines not working had an obvious effect.
00:34:30.200 The provincial energy regulator recommended to Albertans that they go around their house and turn off all the unnecessary systems.
00:34:37.800 Don't run your dishwasher at six o'clock in the evening.
00:34:40.940 Don't, you know, don't turn your lights on outside.
00:34:44.100 All of that stuff.
00:34:45.320 We were all supposed to, we were so worried there'd be these huge blackouts.
00:34:48.600 that the energy regulators said, oh, run around your house and flip down all the switches you can.
00:34:55.620 So that has been a big relief that natural gas is no longer a toxic substance with this government.
00:35:05.360 And, you know, with the Impact Assessment Act, which we had dubbed out here the No More Pipelines Act,
00:35:11.940 it's still there, but it's been gutted.
00:35:15.700 So Carney can say to his environmental caucus, oh, no, no, no, we still have the Impact Assessment
00:35:20.840 Act.
00:35:21.180 But you can also take a look at the fact that the major projects office can override much
00:35:26.180 of what's in the Impact Assessment Act.
00:35:29.220 The Impact Assessment Office cannot hold things up as long as they used to.
00:35:34.440 I think all of these have been very, very big wins.
00:35:36.840 But I think they're joint wins.
00:35:39.120 I think they're joint wins between Danielle Smith and Mark Carney.
00:35:42.260 I don't think Danielle Smith would have gotten very far with any of these, unless Mark Carney was the prime minister, and he's pro-development.
00:35:52.200 Chris, in terms of the, you know, I think Lauren's correct, and the Impact Assessment Act is in some ways gutted.
00:35:59.460 I think also just a different vision of how to implement it.
00:36:04.580 I know it's called the No More Pipelines Act in much of the country.
00:36:08.180 Stephen Gaubeau tried to make it the No More Highways.
00:36:10.320 He tried to get involved in local road decisions here in Ontario, saying, no, no, you can't build that road there, to which the federal government had never been involved in that sort of thing.
00:36:20.880 They told Scott Moe he couldn't build a renewables electricity plant because it had gas backup.
00:36:28.300 I mean, he was trying to shut down everything. And this is a different mindset, which I think really shows up in the one project, one review, one year. How welcome is that to the industry?
00:36:43.240 I think that's hugely welcome. I think that's always been a concern. And I know that when Gibo was the minister, they talked about using the Impact Assessment Act to look at things like SAG-D, thermal oil sands projects, projects which are completely within the boundaries.
00:36:58.300 the province of alberta but they were going to look at uh doing you know assessments on those
00:37:04.060 kinds of projects so that would have thrown a huge element of risk into those kinds of investments
00:37:09.500 along with you know what the impact assessment act would have done on cross-border pipelines which
00:37:14.940 obviously we didn't see a lot of cross-border pipelines being proposed during that period of
00:37:18.780 time so i think the industry uh was certainly welcoming of the changes to the impact assessment
00:37:23.660 act all driven by one change in leader because as you said lauren so many of these people are
00:37:29.460 the same ones around the table yeah absolutely and and um so far i i hate to be a skeptic i
00:37:38.780 hate to throw cold water i still haven't seen anything from carney of a concrete nature as
00:37:46.320 you said when he was having his investment summit in toronto people were so excited about the change
00:37:52.080 in tone, the change in approach. But I don't see an awful lot of investment coming out of that
00:37:58.660 because there haven't been a lot of changes in taxation, regulation, all of the things that
00:38:05.200 incentivize companies to invest. So we'll wait. We'll see. We'll see if Mark Carney goes the next
00:38:13.500 step and becomes a concrete reformer a concrete business developer so chris it what what would
00:38:22.440 the asks be from the industry on that front well what would be their shopping list the shopping
00:38:27.820 list of things that they want to see would start with i think that pipeline i think to lauren's
00:38:32.680 point there is an element of skepticism here about the ability to get projects done because
00:38:37.540 the past has told us that it's been an inability to get projects done which has put a huge risk
00:38:43.340 premium into any kind of investment decision. So there are going to be a lot of people watching
00:38:49.640 this pipeline project to see whether it gets done. And it is primarily being proposed and
00:38:55.660 it's going to be paid for by taxpayers. Pembina pipeline has got a 10% stake, a non-binding stake,
00:39:00.980 and they can make it 20% if that project goes through. But the fact is that the governments
00:39:06.200 are having to build it because private industry is not willing to take on the risk. So they're
00:39:09.720 going to be watching to see whether that project can get through if that project gets through
00:39:13.520 then i think you're going to see people go okay this process does work but it's got to actually
00:39:19.860 happen all right let's talk about the politics of this because i i know they said in their mou that
00:39:27.620 they would make an announcement by october 1st but they waited until october 1st they could have
00:39:32.780 announced this a while ago we've we've all known it was headed this way they waited until october
00:39:37.780 first and i think a certain vote happening on october 19th on the future of alberta and do you
00:39:45.680 want to have a referendum on whether you want to have another referendum on whether to separate
00:39:52.200 from canada it's a convoluted way but you know keith wilson who is uh one of the uh the most
00:40:00.860 thoughtful and uh engaging guys on the leave side and i've debated keith because i told him
00:40:07.640 well, I like you, but you're wrong. He put out a video in response to the Pacific Link
00:40:14.580 announcement. And I'll play you part of what he said, but it's framed within the
00:40:21.200 parameters that he put forward, which said, it's kind of like one of those marriages where the
00:40:28.580 husband is a deadbeat, doesn't do anything until the wife decides she wants to look at better
00:40:34.520 options and then he shows up with a a bouquet of flowers so obviously in his mind uh canada and
00:40:42.520 the federal government is the deadbeat spouse and alberta is the abused spouse and here's how he
00:40:48.440 framed the arrival of this pipeline announcement well i'm encouraged that this that there's some
00:40:55.820 glimmer of hope of market access we need to remember that the concerns that many albertans
00:41:03.020 have about our relationship with Ottawa was never just about a pipeline.
00:41:08.640 And on October 19th, if you accept the bouquet, you are and vote option one,
00:41:17.640 you're basically saying, yeah, the bouquet is good.
00:41:19.860 We're good, honey.
00:41:21.480 You can do the abusive relationship for as long and as much as you want.
00:41:26.480 That's the message you're sending to Ottawa by voting option one, that status
00:41:31.360 quo is fine. Everything's okay. I don't love the battered spouse analogy. I get the grievances,
00:41:38.500 but I don't love that analogy. But politically, Lauren, does this whole issue factor into
00:41:46.640 the pipeline decision? Does it alter the vote on October 19th now that Carney's made it?
00:41:52.880 What's your read? Two separate questions. Yes, the Alberta government and the federal government
00:42:00.460 announced this when they did in a hope of swinging more votes over to the remain side,
00:42:09.440 the no side, as it's known here. So the timing is not coincidental. But will it have much impact?
00:42:18.520 No, I don't think so. I think people's minds were made up. Janet Brown, who is a highly esteemed
00:42:24.480 Alberta pollster took a look at this a while ago, and she said most of the people who were voting
00:42:33.580 yes or no, who were voting separatism or confederation, had made up their minds months
00:42:40.180 ago, and they knew what they were going to vote. Thankfully, so far, she's found, as most pollsters
00:42:48.180 have, that Albertans are split about 70% in favor of staying and about 20% to 25% in favor
00:42:56.800 of leaving.
00:42:57.800 And Keith is right.
00:42:59.180 I mean, I like Keith Wilson a lot.
00:43:01.180 Very, very smart guy, as you said, and a very tempered guy.
00:43:05.960 The other two people who run the Alberta Prosperity Project, who started this whole
00:43:10.880 separatist thing, Keith Rath and what's his name?
00:43:16.760 Jim R.
00:43:17.240 Sylvester.
00:43:17.460 Yeah, Sylvester
00:43:19.720 They're wacky
00:43:21.800 They're over the top
00:43:24.900 They turn more people off than they turn on
00:43:28.560 But Keith has the ability to talk to people at a rational level
00:43:32.800 And maybe make them change their minds
00:43:34.980 But I still think that so long as there is a good turnout
00:43:39.060 On October 19th
00:43:41.120 And Elections Alberta is expecting an 85% turnout
00:43:46.180 We have never had 85% turnout for anything like this.
00:43:51.200 If there's an 85% turnout, the separatists lose big time.
00:43:56.700 Now, they have promised they're not going to go away anywhere, but at least they lose some credibility if the vote is 65-35 or if it's 70-25.
00:44:08.020 Whatever it is, if they get trounced, they don't have the same leverage than if there's a low turnout, and they won't win with a low turnout either, I don't think.
00:44:18.620 But they could end up with 40% of the vote, which then lets them say, aha, see, there are lots of people who agree with us, and so therefore you have to listen to us going forward.
00:44:29.760 But no, I don't think the announcement yesterday makes an enormous difference in the outcome, because I think the outcome was already set in stone months ago.
00:44:41.620 You know, I keep seeing people say, including, you know, smart folks that I like, like Norman Spector, former top bureaucrat in Ottawa, former top bureaucrat in B.C., and he says, based on his experience with how Quebec's been able to use it, Alberta should have a strong vote for option two so they can hold the knife to the throat in Ottawa and get what they want.
00:45:04.260 And I just look economically at what has happened to Quebec.
00:45:09.220 And Quebec, when I was born, Montreal was the business center of Canada.
00:45:15.380 By the time I was leaving high school, Montreal was no longer the business capital.
00:45:22.920 Their economy was utterly depressed.
00:45:25.900 They have never recovered.
00:45:28.460 So, Chris, looking at the Quebec example, are people in Alberta saying,
00:45:33.000 hmm, you know what? Flirting with this separatism thing, this could be really bad for business.
00:45:38.600 This could hurt the industry. This could drive away investment instead of attracting it.
00:45:44.000 Yeah, I would say the business community was pretty quiet on this issue for a number of months.
00:45:49.340 But in the last few weeks, maybe the last couple of months, they've started to, I think, become a little more vocal.
00:45:55.420 I was at a Calgary Chamber of Commerce news conference this week where they brought out a report that was done by
00:46:00.500 a university of calgary economist trevor toome and they talked about the economic consequences
00:46:04.900 of what separation could do to the economy in terms of to the gdp loss this is a province that
00:46:11.960 i think everybody knows is really contingent you know really bases its economy upon trade
00:46:16.960 both trade abroad and to other provinces so it would have big consequences the other thing is
00:46:22.920 this is a province that has a lot of major projects that are moving ahead or either planning to move
00:46:29.200 ahead or in the middle of moving ahead, like the $10 billion Dow project that's going on up in the
00:46:34.800 Edmonton region. And anything that creates uncertainty is a problem or an issue for
00:46:40.540 investors. So that is, I think, the overriding concern is that this drags on beyond, you know,
00:46:47.200 the next few weeks or even a few months, that this could actually start to have an impact upon
00:46:51.840 investment. I don't think it has yet, but I think it could if this drags over time.
00:46:57.520 Well, gentlemen, thank you very much for your time today.
00:47:00.020 I don't think we've solved all the problems of the world,
00:47:02.200 but we know what this pipeline announcement is and what it isn't,
00:47:05.760 and I think that's important.
00:47:07.160 So thank you both.
00:47:08.300 You're welcome. Thank you.
00:47:09.520 Thanks for having us.
00:47:10.220 Full Comment is a post-media podcast.
00:47:12.220 My name's Brian Lilly, your host.
00:47:13.560 This episode was produced by Andre Pru, theme music by Bryce Hall.
00:47:17.400 Kevin Libin is the executive producer of the show.
00:47:20.280 Thanks for listening.
00:47:21.000 Make sure that you hit subscribe wherever you get your podcasts,
00:47:23.540 share this on social media, and tell your friends about us.
00:47:26.340 Thanks for listening. Until next time, I'm Brian Lilly.
00:47:30.700 Here's that clip from Canada Did What? Season 2 that we promised for you.
00:47:35.360 Let me take you back to the night of October 30th, 1995,
00:47:39.860 to the hours right after that likely fatal bullet was dodged.
00:47:44.580 We're awaiting the reaction from the Quebec Premier at the time, Jacques Barizeau,
00:47:48.580 who was championing separatism and had just narrowly lost the vote he had held to try and get it.
00:47:54.160 Did I say narrowly? It was a razor-thin loss. 49.42% of voters said yes to Quebec independence, 50.58% said no.
00:48:07.880 The difference was just above half a percent, less than 55,000 votes out of nearly 5 million.
00:48:15.600 Now there's a generally accepted protocol for what a politician is supposed to do when they lose a vote.
00:48:21.700 You come out, concede defeat, congratulate the victor,
00:48:25.240 kiss your spouse, and thank your supporters.
00:48:27.820 But every once in a while, a politician comes out and says what they really think.
00:48:33.180 They just let it all out in front of news cameras.
00:48:35.840 The bitterness, the disappointment, the recriminations, 1.00
00:48:39.940 a no-filter tirade about how the voters are idiots, and vowing revenge. 1.00
00:48:45.480 That's what happened on the night that Parisot lost the referendum for Quebec independence. 1.00
00:48:49.360 If you don't speak French, that's Parizeau saying that although they lost the referendum,
00:49:00.760 Quebec's French speakers voted 60% for independence.
00:49:04.800 The implication being that if they simply ignored the non-French Quebecers,
00:49:09.800 those who weren't real Quebecers, that is immigrants, Jews, indigenous people,
00:49:13.840 McGill University students, they would have won this referendum in a walk.
00:49:17.480 if you want to hear the rest of the story
00:49:20.540 make sure you subscribe to Canada Did What
00:49:23.300 everywhere you get your podcasts