Carney's Alberta Oil Deal Sparks Cabinet Resignation and First Nations Backlash
Canada Oil Pipeline Deal Faces First Nations Opposition

Political Breakthrough Meets Immediate Resistance

Canadian Prime Minister Mark Carney has secured what many are calling a major political breakthrough with Alberta Premier Danielle Smith, agreeing on an energy deal that could pave the way for a new heavy oil pipeline from the province's oil sands to the Pacific coast. The agreement, announced on Thursday, represents a significant moment in Canadian energy politics, potentially ending years of deadlock between federal and provincial governments.

The proposed pipeline would have the capacity to transport more than a million barrels of oil each day from Alberta's oil sands to the Pacific, opening new export markets for Canada's energy sector. As part of the arrangement, Carney's government gains new legislative powers that could significantly reduce permitting and approval delays for such projects.

First Nations Deliver Uncompromising Response

However, the celebration in political circles was immediately tempered by forceful opposition from coastal First Nations, whose consent the government requires for any pipeline project. The response from politically powerful nations like the Haida was both swift and unequivocal.

Gaagwiis, President of the Haida Nation, stated plainly: "This project is not going to happen." He emphasized that the federal government has a duty to "uphold the honour of the crown" when working with Indigenous communities, warning that "trying to ram through a project puts that 'honour' in jeopardy."

The Haida nation recently secured an unprecedented deal with provincial and federal governments recognizing their Aboriginal title to Xhaaidlagha Gwaayaai, or "the islands at the boundary of the world." This hard-won victory now positions them to strongly resist what they see as a threat to their territory and way of life.

Gaagwiis explained their firm stance: "Because there's absolutely nothing that can fully guarantee the safety of our communities from an oil spill, there's nothing that can be said to convince us otherwise." He stressed that an entire ecosystem could collapse in the event of a spill, potentially devastating a culture that has developed relationships with the ocean over thousands of years.

Political Fallout and Climate Concerns

The energy agreement came at an immediate political cost for Prime Minister Carney, triggering the resignation of one of his most prominent cabinet ministers. Steven Guilbeault, a longtime environmental advocate, announced his resignation just hours after the deal was signed, stating the decision came with "great sadness" but was necessary given his values as an environmentalist.

The deal also represents a notable political shift for Carney, who before entering politics had built credentials as a global economist focused on achieving a net zero future. The agreement exempts any potential pipeline project from the existing coastal oil tanker moratorium and emissions cap, while requiring Alberta to raise its industrial carbon pricing and invest in a multibillion-dollar carbon capture project.

Jessica Green, a political science professor at the University of Toronto, was sharply critical of the agreement. "Everything in this [agreement] says more fossil fuels, except the first line – where it says Canada and Alberta remain committed to achieving net zero greenhouse gas emissions by 2050," she observed. Green characterized the pact as a "dumpster fire" of a climate agreement that signals Canada is "all in" on fossil fuels.

The political context for this shift appears rooted in economic pressures. A protracted trade war with the United States, Canada's largest trading partner and closest political ally, has dramatically impacted the country's economic security. Much of Carney's brief tenure as prime minister has focused on expanding potential markets outside of the US.

Mixed Reactions and Practical Obstacles

Despite the opposition, the deal received enthusiastic support in Alberta, where Carney received a standing ovation when speaking to the Calgary chamber of commerce – a rare achievement for a Liberal leader in the conservative-leaning region. Business groups have also come out in favour, with the Canadian chamber of commerce stating the agreement moves the country toward "economic cooperation, greater regulatory certainty and reduced tension."

Recent polling indicates that a majority of Canadians, including a slim majority in British Columbia, are open to the idea of a pipeline. The vague outlines of the infrastructure project have even piqued the interest of some First Nations in Alberta who have been promised a possible equity stake.

However, significant practical obstacles remain. British Columbia Premier David Eby, a strong critic of the deal after his province was excluded from talks, pointed out that "no proponent, no route, no money, no First Nation support" currently exists for the project. He warned that any pipeline proposal should not draw limited resources away from "real projects that will employ people, provide the country with money that we desperately need, and provide investment and access to global markets."

Critically, no private company has expressed interest in backing a pipeline project that would face such stiff opposition, raising questions about the agreement's practical implementation.

For the remote coastal First Nations whose harvests and livelihood depend on the Pacific Ocean, the pipeline threat represents more than just climate policy. As Gaagwiis concluded: "I see the reality setting in soon that there is no project, there's no pipeline route, there's no proponent – and there's no support. Everyone here is against it. There are other ways for Alberta to find more business in moving oil. But it's not going to be through the coast."