Finding a politically accommodating route to market for Alberta bitumen is becoming even more difficult than producing the abundant stuff.
The US balked when TransCanada proposed to connect Alberta's prolific oil sands region with high-conversion refineries on the Texas Gulf Coast. President Barack Obama delayed action on a crucial permit until after this year's general election. Now a westbound alternative has met official resistance.
British Columbia Premier Christy Clark declared environmental risks outweigh economic benefits of the Northern Gateway proposal by Enbridge. The pipeline would provide a route for oil produced in Alberta to Kitimat in northern BC. Production from the oil sands, exports of which now flow exclusively to the US, then would have access to Asian markets.
But Clark is adamant. In a move strongly opposed by Alberta Premier Alison Redford, she wants her province to be compensated for allowing the pipeline to cross its territory.
Environmentalists oppose any pipeline that carries what they disparage as "dirty oil." Clark faces a tough reelection bid against an opponent, now leading in polls, firmly opposed to Northern Gateway. Clark's demand for an unspecified "fair share" of oil sands wealth served notice, if any was needed, that a campaign by Redford for provincial coordination on energy would be contentious. Conflict between the two premiers erupted just before a meeting of provincial leaders in Halifax at which the Northern Gateway project and Redford's pan-Canadian energy idea were to be discussed.
Meanwhile, a new report from the Canadian Senate calls for a national energy policy involving the federal government and expansion of capacity to move oil from western to eastern Canada. The latter area now depends heavily on imports.
While doubt enshrouds the economics of transporting large amounts of heavy material from Alberta to Canada's East Coast, the suggestion has strong nationalist appeal.
And as the US and now BC governments have made painfully clear, when transport of bitumen is at issue politicians won't stand quietly by and let economics rule the day.
