Canadian oil pipeline gains political support after U.S. move on Venezuela

Canada's leaders are promoting a new westward oil pipeline to send heavy crude to Asian markets, and recent U.S. actions to reopen Venezuelan oil have strengthened the political case for export diversification.

Canada's political leaders are renewing calls for a new westward oil pipeline to reach Asian markets. The push has gained momentum after the United States moved to unlock Venezuelan crude, which analysts say could re-enter markets and compete with heavy Canadian oil. Alberta's premier, Danielle Smith, has advocated for a roughly 1 million barrels-per-day line to British Columbia's coast with Indigenous co-ownership mentioned. Prime Minister Mark Carney has set a goal of doubling exports to non-U.S. markets by 2035, but building new coastal pipelines would take many years and faces opposition. Key points: - U.S. actions to open Venezuelan crude are reported to have weakened prices for heavy Canadian oil and strengthened arguments for export diversification. - Alberta Premier Danielle Smith is pressing for a westward pipeline to the B.C. coast capable of about 1 million barrels per day and has framed recent Venezuelan events as a reason to expedite the project. - The article reports that Prime Minister Mark Carney set a target to double Canada’s exports to non-U.S. markets by 2035 and that a memorandum of understanding with Alberta was signed in November; some regulatory obstacles have been eased. - Canada currently has one pipeline able to ship to non-U.S. customers: the Trans Mountain system to the Vancouver region, with capacity near 900,000 barrels a day; overall, more than 4 million barrels on average move south to the U.S. each day. About 64% of Trans Mountain shipments last year were listed as destined for China, per Vortexa. - Industry observers say Venezuelan heavy crude is similar in quality to Canadian heavy crude and could reach the U.S. Gulf Coast more cheaply, increasing competition for Canadian barrels on some markets. Summary: The U.S. decision to reopen Venezuelan crude markets has made a westward export pipeline a more prominent political issue in Canada and reinforced existing calls from Alberta and the federal government for export diversification. Policy steps reported include an MOU with Alberta and some regulatory easing, but construction of new coastal pipeline capacity would take years and remains contested by provincial governments and environmental groups.