Fort McMurray, long recognized as the heart of Canada’s oilsands industry, is poised for a resurgence with the imminent opening of the Trans Mountain pipeline expansion. This development promises to bolster the community’s economy by enhancing export capabilities for Canadian crude oil.
A decade ago, Fort McMurray was a bustling boomtown, thriving on high oil prices and the global demand for its bitumen-rich sands. However, following a downturn in oil prices, the area faced significant economic challenges, including layoffs and a reduction in oilsands-related construction. Now, the community is optimistic that the new pipeline, which increases capacity from about 300,000 barrels per day to 890,000, will mark a turning point.
Dennis Vroom, senior strategic advisor for the regional municipality of Wood Buffalo, emphasizes the pipeline’s importance. “We are so heavily supported by oilsands operators in the region, that when things that are important to them—like the Trans Mountain pipeline—happen, there are direct benefits to us. What supports them, supports us,” he stated.
Despite the long road to completion, marred by environmental protests and budget overruns, the pipeline is seen as a crucial step toward stabilizing the local economy. Drew Zieglgansberger, an executive at Cenovus Energy Inc., shared his enthusiasm about the project’s completion. “It’s an exciting time. It’s been a long time since we’ve had some new incremental egress for Canadian products,” he remarked, indicating that the pipeline expansion allows the company to plan for growth with greater confidence.
The community of Fort McMurray has also had to contend with numerous disasters over the past decade, including a devastating wildfire in 2016, the COVID-19 pandemic, and a significant flood in 2020. These events have reshaped the town, leading to a more tempered outlook on its economic future. Sarah Thapa, owner of Avenue Eatery & Café, reflects on the changes: “COVID happened, the flood happened, the fire happened—and we’ve not seen the town the same way,” she said, noting the challenges small businesses face in the evolving economic landscape.
While the pipeline is a beacon of hope for many, the oilsands industry continues to navigate significant environmental scrutiny. The Pathways Alliance, a coalition of major oilsands companies, is proposing a large-scale carbon capture and storage project to address emissions concerns. This project, still pending final investment decisions, represents another potential shift toward sustainable development in the region.
As Fort McMurray stands at the cusp of what many hope will be a revitalized era, the community remains closely tied to the fortunes of the oilsands industry. While the days of rapid expansion and high spending may be over, the Trans Mountain pipeline expansion offers a steady path forward, promising new opportunities for growth and stability.
