Iran war underscores need for new Alberta pipeline to coast, says Daniel Smith

Alberta Premier Daniel Smith says the war in Iran underscores the need for a new pipeline to connect his province’s oil reserves to the West Coast.

Global oil prices have seen a jump following the American-Israeli attack on Iran over the weekend and the threat of shipping blockades.

Smith says any disruption in the Strait of Hormuz, a major oil choke point at the mouth of the Persian Gulf, would underscore the need for a new pipeline that could bring his province’s key exports to Pacific shipping lanes.

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If the uncertainty continues, he says, it shows that the world and Canada’s trading partners must have a stable source of supply.

Depending on how market volatility plays out with a month left in the province’s current fiscal year, Smith says his government’s projected $4.1-billion deficit could shrink.

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Last week, her United Conservatives projected a $9.4-billion deficit for the coming year, largely based on slower oil prices.

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