Alberta Premier Danielle Smith has issued a sharp demand to the federal government, calling for the approval of a new heavy oil pipeline to Canada's West Coast by this fall. Smith framed the request as an urgent economic necessity, pointing to recent geopolitical events in Venezuela that she argues threaten Canada's position in the global energy market.
Geopolitical Shifts Prompt Urgent Call
The premier's demand follows a dramatic U.S.-led intervention in Venezuela over the previous weekend, which resulted in the apprehension of socialist leader Nicolas Maduro. U.S. officials, including former President Donald Trump, have stated intentions to secure control over Venezuela's vast heavy oil reserves, with plans for massive investment to revive production.
Smith emphasized that Canada and Venezuela produce similar grades of heavy oil, making Venezuelan crude a direct competitor for the U.S. refinery market, which currently takes over 90% of Canadian oil exports. She warned that inaction from Ottawa would risk "ceding market share, losing investment, and undermining Canada's competitive position."
Timeline and Federal Engagement
Smith outlined a concrete timeline for the project, stating that her government would submit a formal application for a pipeline to northwest British Columbia by June 2026 "at the latest." She has asked the federal government to grant approval "no later than this Fall."
The premier revealed she raised the issue directly with Prime Minister Mark Carney during a meeting on Friday, January 9, 2026. In a social media post following the discussion, Smith described it as "positive" and stressed the necessity to "greatly expedite" the approval process for a pipeline capable of moving one million barrels per day to the Pacific coast.
Smith's public statements were supported by a formal letter sent to the Prime Minister the day before the meeting, reiterating the same urgent sentiments regarding the shifting global energy landscape.
Market Reaction and National Stakes
The immediate financial fallout from the Venezuela incursion has been significant for the Canadian energy sector. Canadian oil stocks lost approximately $8 billion in market value in just four days following the news, highlighting investor sensitivity to the potential competition.
The proposed pipeline is seen by the Alberta government as a critical piece of infrastructure to diversify Canada's oil exports beyond the United States. Access to non-U.S. markets via the West Coast is considered a strategic priority to mitigate the risk of being displaced by other heavy oil producers like Venezuela.
The call for rapid approval sets the stage for a significant federal-provincial discussion, balancing economic urgency with regulatory and environmental considerations for a major project aimed at British Columbia's coast.
