Alberta’s oilsands have seen a period of relative calm over the past decade, but both federal and provincial authorities are optimistic that a new pipeline project and policy adjustments could revitalize the industry.
During his visit to Fort McMurray, Alberta, Prime Minister Mark Carney unveiled the first proposal to be recognized as being in the national interest under recent legislation: the Pacific Link pipeline, capable of transporting one million barrels of oil per day from Alberta to a marine export terminal in southern British Columbia.
This designation means the proposal will undergo a streamlined review process overseen by the major projects office based in Calgary.
The success of the pipeline project largely depends on the willingness of oilsands companies to invest in expanding their production capacities. When asked about the potential resurgence of the oilsands industry, Carney preferred the term “sustained growth” over “boom.”
The previous oil boom, spanning from the mid-2000s to the mid-2010s, was accompanied by challenges such as cost escalations, labor shortages, and housing deficits. Carney and Alberta Premier Danielle Smith are optimistic that any resurgence in construction by oilsands companies will be managed differently this time.
For over a decade, oilsands firms have refrained from launching multi-billion-dollar megaprojects akin to those of the past. The latest major project, Fort Hills, operated by Suncor Energy Inc., experienced significant cost overruns from its approval in 2013 to its operation commencement in 2018.
Instead of initiating new projects from scratch, companies have opted to enhance existing operations to maximize output or expand their current facilities.
Top executives have attributed the slowdown in large-scale growth projects to constraints in pipeline capacity, complex regulatory frameworks, and stringent environmental standards.
[Companies] have managed to find a way to increase production without having the kind of dramatic pressure that we saw in the past of a large number of people moving here, not able to find homes.– Danielle Smith, Alberta premier
The decline in investments a decade ago coincided with a slump in global crude prices due to oversupply, compounded by the subsequent demand shock from the COVID-19 pandemic.
As of 2026, the geopolitical tensions in the Middle East have underscored the importance of secure energy supply chains, prompting a shift towards stable energy sources. Various energy policies introduced during the Trudeau administration that were unpopular among oil industry stakeholders have been reversed, paving the way for projects like Pacific Link to progress and potentially facilitate increased exports of oilsands crude to lucrative Asian markets.
“Lessons have been learned from past infrastructure developments,” Carney remarked during a press briefing.
He highlighted the proactive planning by local officials to address community needs and emphasized the inclusive approach involving Indigenous leaders to ensure a wider distribution of economic benefits.
Carney also pointed