Some of Alberta’s biggest energy leaders gathered to discuss the future of the industry—and a potential west coast pipeline—Thursday in Calgary. The Energy Roundtable brought together players in the oil and gas sectors. After a rather unpredictable year for the market, the conversation at the event was on the years ahead and on the infrastructure that could grow the industry. Front and centre: a pipeline-focused memorandum of understanding finalized earlier this month between the provincial and federal governments. Industry leaders are so far split on whether they believe a new line is possible. “With the current regulatory environment, building a pipeline to the west coast, to keep it very simple, is probably twice the cost of just going south,” Waterous Energy Fund CEO Adam Waterous told CTV News. “(It would be) a big commitment.” Waterous believes the project needs what he calls “market therapy.” “If you put your house on the market and you want $1 million, you’re going to get feedback. Maybe it’s worth $1 million, maybe it’s worth $1.2 million, maybe it’s worth $800,000. To have investors part with the cash from their wallets, it depends on the terms,” he said. Energy experts currently speculate ballooning costs could get in the way of the project. Shipping and emissions reduction initiatives will be pricey, and companies will need to eventually boost production to fill the new line. And many potential proponents are currently focused on other projects. South Bow announced Thursday at the conference it will not go ahead with a partial revival of the Keystone XL pipeline until it has proof a U.S. presidential permit is “durable.” “So, the governments have two choices,” Waterous said. “They either keep the existing regulatory environment that is twice the cost, and the government has to pay the difference itself relative to industry, or the government says, ‘We’re going to do the heavy lifting, make some regulatory changes, so it actually ends up being cost-competitive to develop an oil pipeline.’” Trans Mountain Corporation’s CEO is more optimistic, though his company is one of those already working on an existing expansion. “There are a number of things being done by the federal government to provide more certainty around investment,” Mark Maki told CTV News. “There’s probably a certain amount of certainty that has to be achieved before a proponent will step in, but I think once that certainty is there, they’re going to. I think there’s a lot of interest in Canada.” The province’s pipeline proposal is due by July 1. Alberta Energy Minister Brian Jean declined an interview request.
