Build It Now: How a Cross-Country Pipeline Could Strengthen Canada

 

Building a cross-country pipeline (for oil or natural gas) can have several economic, energy, and strategic benefits. Here are the main ones:

1. Lower Transportation Costs

Pipelines are usually cheaper over the long term than rail or truck transport. Once built, they move large volumes continuously with relatively low operating costs. This can:

• Reduce fuel transportation expenses

• Lower energy prices for industries and consumers

2. Energy Security

A domestic pipeline network reduces reliance on foreign imports or overseas shipping routes. For example, debates around projects like the Trans Mountain pipeline expansion project often focus on whether pipelines help ensure reliable national energy supply.

3. Increased Export Capacity

Cross-country pipelines can connect production regions to export terminals or major markets. This can:

• Expand trade opportunities

• Increase revenue from energy exports

• Improve trade balances

4. Economic Growth and Jobs

Pipeline projects create:

• Construction jobs

• Engineering and manufacturing demand

• Local business activity along the route
  They can also stimulate development in energy-producing regions.

5. More Stable Supply Chains

Pipelines operate year-round and are less affected by weather disruptions compared to shipping or trucking. This improves reliability for refineries, utilities, and industries.

6. Potential Environmental Benefits vs. Alternatives

While pipelines have environmental concerns, supporters argue they can:

• Produce fewer emissions per barrel transported than rail

• Reduce accident risk compared to tanker trucks or trains

7. Infrastructure Integration

Large pipelines can connect multiple provinces or states, integrating regional energy markets and balancing supply and demand across a country.