This article was originally published in People's Voice, Canada's leading socialist newspaper.
Despite having some of the largest energy reserves in the world, despite an almost universal support for pipeline projects among its major political parties, and despite a bloated lobby of energy executives who dictate its domestic energy policy, the petro-state of Canada is in a deep crisis.
Three pipeline proposals have already been shot down. Two others remain deeply unpopular and face a long list of challenges. The Trans-Mountain Pipeline extension (TMX) would allow the Alberta tar-sands operations to increase by up to 600%. Despite this, Kinder Morgan ultimately pulled out of the project, citing low investor confidence in the face of strong opposition from Indigenous groups as well as enormous legal and environmental challenges. Tar-sands bitumen is notoriously hard to produce, requiring massive amounts of energy to process, and comes at enormous environmental costs. Most damning is the fact that bitumen produced from tar-sands cannot compete in the global oil market; it only barely squeaks out a profit due to heavy government subsidies and handouts.
