The success of the Trans Mountain pipeline expansion has delivered a massive financial windfall for Alberta's energy sector while highlighting the urgent need for additional pipeline infrastructure to coastal waters, according to new research from Canadian policy experts.
A report from the Montreal Economic Institute (MEI) revealed that the expanded pipeline system has generated US$16.7 billion in additional industry revenues between June 2024 and November 2025, as the pricing gap between Alberta heavy crude and lighter U.S. oil blends narrowed by 37.5 per cent.
"The reduction in the spread means that it is becoming possible to approach the full value of our resources, which helps Canadian firms, but also increases government revenues," said Gabriel Giguère, MEI senior policy analyst.
The pipeline expansion has dramatically shifted Canada's export patterns. Before Trans Mountain's completion, non-U.S. Canadian oil exports represented just three per cent of total exports. By the fourth quarter of 2025, that figure had jumped to 14 per cent.
Northern B.C. Pipeline in Development
The findings arrive as Alberta prepares a regulatory application for a new oil pipeline to northern British Columbia's coast, which could handle up to one million barrels of oilsands crude daily for Asian markets.
The proposed project stems from an energy accord between Alberta and the federal government signed late last year, though no private-sector company has yet committed to leading the development.
Premier Danielle Smith confirmed Wednesday that officials from both levels of government continue working through implementation details of the memorandum of understanding, which includes raising the minimum industrial carbon price to $130 per tonne from the current $95.
Carbon Price Increase Manageable, Study Shows
A separate analysis from climate policy organization Clean Prosperity suggests oilsands producers can easily absorb the higher carbon costs thanks to improved market access through West Coast pipeline infrastructure.
"Clean Prosperity's modelling shows that the federal-Alberta grand bargain is not just a climate breakthrough, but can also deliver a massive economic tailwind," said Benjamin Dachis, the group's vice-president of research and outreach.
The organization examined four major oilsands operations and found the carbon price increase would add between 81 cents and $3.75 per barrel in costs when a new pipeline comes online, compared to current costs of 53 cents to $2.46 per barrel.
"The global demand for Canadian energy is very real, and new infrastructure has already demonstrated its benefits," Giguère said. "It is urgent that governments remove the regulatory obstacles that obstruct the construction of new energy infrastructure."
Information for this article was sourced from Global News.
