The ongoing battle between Alberta and British Columbia over the Trans Mountain pipeline expansion took a new twist Thursday when Alberta Premier Rachel Notley said her province is prepared to escalate the fight by cutting off oil exports to B.C. if that province continues to obstruct the $7.4 billion project.
In the Alberta Government’s Speech from the Throne Thursday, Premier Notley said the province intends to do whatever it takes to end British Columbia’s pipeline blockade.
“Every option is on the table,” said the premier. “We will not hesitate to invoke similar legislation if it becomes necessary owing to extreme and illegal actions on the part of the B.C. government to stop the pipeline.”
Blocking oil exports would be the last play in an ongoing trade war between the neighbouring western provinces, triggered by opposition from the B.C. Government to allow an increase in Alberta bitumen exports, regardless of federal authority and approval. Speaking to the media Thursday night, Premier Notley said Alberta is giving itself the greatest range of tools and flexibility, while hoping it doesn’t have to use them.
The Alberta Government previously cancelled talks to purchase B.C. electricity and followed up with a boycott of B.C. wines, then called that off after B.C. backed down on a scheme to further delay the project by studying the behaviour of bitumen.
Cutting the flow of oil from Alberta would wreak havoc in B.C. Motorists in the Lower Mainland of British Columbia would face even higher gasoline prices and Vancouver Airport would have to line up new suppliers.
Fuel supply is already so tight that prices have been pushed to record highs of $1.50 a litre in some locations by maintenance at the Burnaby refinery. They could go higher in the summer because of planned maintenance at nearby refineries in the U.S. and because of the higher U.S. dollar, GasBuddy senior petroleum analyst Dan McTeague told the Canadian Press.
All of Alberta’s oil to B.C., about 300,000 barrels a day, is transported on the Trans Mountain pipeline, which has been in operation since 1953. B.C. opposes the plans to nearly triple capacity because it believes it would increase the risk of oil spills.
