A revival of Energy East? Here’s why that’s unlikely
In the realm of oil pipelines, the conversation is often filled with political rhetoric, but when it comes down to it, the bottom line is all about dollars and cents. While provincial premiers may be discussing the revival of the proposed Energy East pipeline from Alberta to New Brunswick, the reality is that no private company has stepped up to take on the project.
Former pipeline executive Dennis McConaghy, who worked on Energy East, believes that the political and regulatory risks associated with the project make it a daunting prospect for any corporate board in Canada. With the recent threat of 25 per cent tariffs on Alberta’s oil exports to the United States, some are looking at Energy East as a potential solution. However, without any private investors showing interest, the project remains on the backburner.
The Energy East pipeline, first proposed in 2013, would have spanned 4,600 kilometers from Alberta to New Brunswick, with the majority of the oil being exported overseas. While the project was seen as a nation-building initiative, it was ultimately cancelled due to a shift in the pipeline landscape. With the approval of other pipeline projects like the Trans Mountain expansion and the potential revival of Keystone XL, Energy East lost its appeal as a viable option for transporting Alberta’s oil.
Despite calls from some political leaders to resurrect the Energy East project, the lack of private investment and the need to restart the regulatory approval process present significant obstacles. The federal government’s commitment to climate and environmental policies, as well as the ongoing opposition to oil pipelines in Quebec, further complicate the project’s feasibility.
While the idea of reviving Energy East may seem like a solution to Alberta’s tariff woes, the reality is that the project faces numerous challenges that make it unlikely to come to fruition. With the future of Canada’s oil exports uncertain, the debate over Energy East highlights the complex interplay between politics, economics, and environmental concerns in the world of oil pipelines.
