Varcoe: 'An absolute game changer' -- After years of discord, energy industry backs new Alberta-Ottawa deal

Those in the oil and gas sector see the changes as promising, although upcoming discussions on details and timelines will be critical

It's hard to imagine an energy accord between Alberta and Canada could provide so many things that industry leaders -- and the province -- wanted after years of battling and limited progress.

But the scrapping over energy and environmental policy between the two levels of government appears to be over, at least for the time being, while gaining support from many in the province's oil, gas, and electricity sectors.

The province signed a much-anticipated memorandum of understanding Thursday with the Carney government that delves into a number of key areas.

More importantly, it's hopeful to see collaboration on potential projects that could create jobs, attract investment and help diversify Canada's exports, such as through a proposed pipeline to the Pacific Coast and the Pathways Alliance $16.5-billion carbon capture network in the oilsands.

"When Canada and Alberta work together on (a) common cause, it just unleashes the economy. That's what we're trying to do," Alberta Premier Danielle Smith said in an interview.

"There will be more battles. We don't agree on everything, but I hope that we're not going to be battling on something as foundational as our economy."

Alberta will be able to send a proposal for a major bitumen pipeline to the coast -- with the capacity to move at least one million barrels per day -- to the federal Major Projects Office for consideration.

If the proposal attracts a private sector backer and is approved, the MOU will allow the project to be exempted from the federal tanker ban, to "enable the export of bitumen from a strategic deep-water port to Asian markets."

Canada and the province also said they will engage with the country's most western province on a pipeline project, "to ensure British Columbians share substantial economic and financial benefits of the proposed pipeline," although B.C. Premier David Eby and some coastal First Nations have already voiced opposition.

As part of the MOU, opportunities for Indigenous co-ownership will be a priority.

And Canada will not adopt the oil and gas industry emissions cap, which the province and industry have contended would serve as a production limit.

The Clean Electricity Regulations, which loomed over Alberta's gas-dependent power grid, are suspended immediately in the province, pending a new carbon price agreement that would see the province boost its levy on heavy industrial emitters to an effective rate of $130 per tonne.

Enmax Corp. CEO Mark Poweska, who has expressed concerns about the impact of the rules on future consumer bills and power system reliability, said the carve-out from the CER was positive. Using the carbon tax is the right way to focus on sustainability and lowering industry greenhouse gas emissions.