After months of negotiations, it appears Ottawa and Alberta are close to reaching an energy accord.The Globe and Mail reports two federal insiders have said Premier Danielle Smith’s hopes of boosting Alberta’s oil and natural gas sector may finally be answered, as outlines of the agreement involve an oil pipeline running from Alberta to the northwest coast of British Columbia.According to sources, members of both the Albertan and the federal governments are said to be optimistic that the memorandum of understanding (MOU) is within reach. The two sources say nothing is written in stone yet, but Ottawa is possibly willing to grant waivers.On the bargaining table is a limited exemption to the current oil tanker ban on the BC coast, a possible lowering or removal of the industrial emissions cap, and changes to industrial carbon pricing in support of Alberta’s ramping up of carbon capture technology.The sources said the proposed BC pipeline would require a private sector proponent, as well as buy-in from coastal First Nations communities and environmental approvals.It is not currently known if this would require the approval of BC’s NDP government, which seems unlikely given Premier David Eby’s staunch public opposition.The MOU could also include the revival of the cancelled Keystone pipeline to the US, but that depends on talks with the Trump administration, which are currently stalled.Natural Resources Minister Tim Hodgson and Privy Council Clerk Michael Sabia are reportedly playing key roles in negotiations.Sabia, the former CEO of Hydro-Québec, BCE Inc., and Quebec’s pension fund, got involved in the negotiations after Canada-U.S. tariff talks collapsed following Ontario Premier Doug Ford’s decision to run controversial tariff advertisements over the first two games of the World Series in October, which angered President Donald Trump..SMITH MOVES GOALPOSTS: Premier pushing back deadline for feds to respond to Alberta's demands.A possible announcement in time for the UCP’s convention, set to begin in Edmonton on Nov. 28, could also be in the cards, signalling a win for Smith at an opportune time.Previously, Smith had said she expected a resolution on the MOU by Nov. 16 — Grey Cup weekend — to resolve the ‘nine bad laws’ that had been infringing on Alberta's oil and gas sector.While that deadline came and went, it would appear there has now been a shift in the wind with this latest development, as Carney and Smith have taken a more collaborative approach to the issue.Smith told reporters on Monday that she and the prime minister were very keen to proceed with what she called a new vision for Alberta and Ottawa, but stated that some players in Carney’s cabinet may not be fully invested.“It may well be that there are some members of his caucus who are not fully on board with that new vision,” Smith said.“But I will know in a matter of days whether or not they’re influential enough to change the direction that I think the Prime Minister and I want to go,” she said.Carney is now set to head to the United Arab Emirates and then to the G20 summit in South Africa, with a return to Canada set for Nov. 24.
