Canada Unveils New Pipeline to Cut Reliance on U.S. Oil Routes

By Felicity Bradstock – OilPrice.com

Alberta is home to vast oil reserves, totalling around 158.9 billion barrels. At present, the United States is the main importer of Canadian crude, which accounted for 63.4 per cent of U.S. crude imports in 2025. In recent years, as Canada’s federal government has favoured plans for a green transition, thereby hindering the expansion of the oil industry, there have been calls from a minority of Alberta residents to hold a referendum on a potential separation from Canada.

The governments of Alberta and Canada have now joined together to propose a new oil pipeline capable of transporting oil from western to eastern Canada, to reduce reliance on U.S. infrastructure and develop new export markets. The proposal reflects a long-discussed idea that was eventually abandoned almost a decade ago. At present, oil is transported from Alberta to Ontario via the United States, and the state of Michigan has previously threatened to shut down that route, thereby putting Canada’s energy security at risk.