Some signs are positive but Ottawa isn't removing all of its regulatory barriers and carbon policies will still add US$10 a barrel to costs

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Alberta Premier Danielle Smith can take a bow for finally getting the federal Liberals to go on record supporting an oil pipeline to the West Coast — at least in principle. The Memorandum of Understanding announced today lays out several conditions for a pipeline carrying a million barrels a day of bitumen, as well as an expansion of TMX by 300,000 to 400,000 barrels, to qualify for Ottawa’s major project list. But other conditions for getting the project over the hump could be showstoppers. Alberta could be left with a pipe dream rather than a pipeline, and deepened alienation.

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The federal government is willing to suspend the West Coast tanker ban — which has never affected coastal tanker traffic from Alaska — and regulatory review of the Impact Assessment Act for this one pipeline to the West Coast (though so far not for any others). And it will not move forward with the oil and gas emission caps but will require methane emissions to fall to 75 per cent of 2014 levels. Alberta will toughen up its big-emitter carbon tax. With financial support from both levels of government, the industry will “decarbonize” oil by completing the $16.5-billion........

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