Hub Podcasts Is a new Alberta oil pipeline actually possible?
Oct 7, 2025
Peter Terzakian, a prominent energy economist and founder of Studio.Energy, dives into Alberta's ambitious proposal for a new one-million-barrel-a-day oil pipeline to the B.C. coast. He discusses the current mood in the oil industry, transitioning from despair to cautious optimism. Terzakian outlines the significant financial and regulatory challenges faced in getting a pipeline built. He emphasizes the need for government-industry alignment and predicts a timeline of two years for permits and five to ten years for significant production increases. He also addresses the evolving dynamics of oil demand.
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Regulatory Risk Can Kill Pipelines
- Pipeline projects face risks beyond cost overruns, including political cancellation and changing regulations.
- Peter Terzakian warns past cancellations (e.g., Northern Gateway) show regulation can kill projects even after approvals.
Filling The Pipe Costs More Than Laying It
- Building a pipeline is only part of the cost; developing upstream production to fill it costs much more.
- Terzakian estimates a $25–30B pipeline needs roughly $100B more to explore, develop, and sustain flows.
Align Governments And Industry First
- Align federal, provincial (BC and Alberta), and industry policy before seeking major investment.
- Terzakian says this alignment creates conditions for pipelines, ports, and upstream facilities to attract capital.