The courts and lawyers will love this. Will it ever happen?

BREAKING: Alberta and Ottawa strike sweeping deal to boost oil exports, scrap federal caps and push oil to Asia
Carney and Smith sign deal
Carney and Smith sign deal
Western Standard News Services
Western Standard News Services
Published on:
27 Nov 2025, 10:06 am
Alberta and Ottawa have signed a sweeping new energy accord that Premier Danielle Smith says marks a “new starting point for nation building,” including a pledge from Prime Minister Mark Carney’s government to shelve its oil and gas emissions cap, suspend clean power rules, and back a major indigenous-owned pipeline to get oil to Asian markets.

The agreement, signed Wednesday, clears the way for a privately financed, indigenous co-owned bitumen pipeline capable of moving more than one million barrels per day to a deep-water port on the Pacific coast.

Ottawa formally declared the project to be in the national interest, while also signalling it will adjust the tanker ban to allow Alberta’s oil to reach Asia.

The line would come on top of the Trans Mountain expansion’s additional 300,000 to 400,000 barrels per day.

"It's a great day for Alberta and a great day for Canada," said Carney.

The deal promises major regulatory changes aimed at reducing uncertainty that industry groups say has crippled competitiveness and stalled projects. In return, both governments agreed to long-term carbon tax rules under Alberta’s TIER system, methane reduction targets of 75% by 2035, and support for the Pathways Alliance to build what they describe as the world’s largest carbon capture, utilization and storage project.

Smith called the agreement Alberta’s “moment of opportunity” to prove that resource development and environmental improvement can advance together.

Carney’s government, for its part, committed to not implementing the federal emissions cap — a move industry leaders celebrated as a green light for major growth.

Alberta is now targeting daily oil production of six million barrels by 2030 and eight million by 2035.

The new accord also includes an immediate suspension of the Clean Electricity Regulations in Alberta, a step Alberta argues is essential to stabilizing the grid and enabling thousands of megawatts of AI computing development, including sovereign computing capacity for Canada and its allies.

A centrepiece of the agreement is fast-tracking Pathways Plus, touted as the world’s largest carbon-capture, utilization and storage project. Ottawa and Alberta say it will cut emissions, add more than $16 billion to GDP, and support over 40,000 jobs each year.

Indigenous leaders welcomed the framework, with Alexander First Nation Chief George Arcand Jr saying the pipeline represents a chance to build lasting economic partnerships and ensure communities have “substantial benefit” from major projects.

Consultations with First Nations and the Government of British Columbia will begin immediately, both governments said.

Business groups applauded the rollback of federal restrictions.

The Explorers and Producers Association of Canada said the deal shows Canada is ready to address “regulations and policy that are impacting competitiveness and spending,” while the Business Council of Alberta called the end of the emissions cap a victory for production, jobs and prosperity.

Both governments said the agreement will help Canada grow oil and gas production, expand AI and associated industries, strengthen national security, and cut emissions intensity through CCUS, nuclear power and other emerging technologies.

The Pathways Alliance said it looks forward to finalizing details, calling the accord a sign Canada is serious about becoming an energy superpower.