Pipeline decisions and energy-market volatility extend beyond oil producers, shaping the broader ecosystem of businesses that support the sector. For Canadian businesses whose revenue rises or falls in relation to the oil and gas industry, paying close attention to trends in pipeline construction can help predict upcoming shifts in demand, project timelines, and spending.
Let’s explore what pipeline approvals or denials mean for small and medium-sized businesses.
What is market fluctuation, based on approvals and denials of pipelines?
Market fluctuation refers to the changes in energy prices, project approvals, export access, and investment confidence that affect whether energy-adjacent businesses expand, delay, or preserve cash. Prime Capital has seen that project confidence, commodity prices, and regional infrastructure activity can influence when business owners choose to expand fleets, replace aging equipment, or preserve cash through leasing.
There are various indicators of market fluctuations, including:
- The price of oil and gas
- Trends in supply and demand (influenced by production volumes and export capacity)
- Who is accessing the market and through which routes
- Regulatory uncertainty around approvals, denials, emissions policy, and carbon pricing
- Project timelines, including delays, cancellations, and phased construction
- Financing conditions, such as interest rates, lender appetite, and residual-value risk for equipment
- Contractor willingness to lease equipment before work is awarded
The biggest influence on Canadian oil and gas market fluctuation is the global crude oil price, which dictates domestic pricing regardless of where the oil is pumped. When global events, supply problems, or economic shifts occur, market participants quickly adapt their pricing accordingly, which eventually impacts fuel prices in Canada.
Alberta’s active drilling rig count between 2020 and 2026:
Source: https://boereport.com/caoec-rig-count/
What impact do pipeline approvals and denials have on supporting businesses?
Denials
Delays or cancellations in pipeline construction may require businesses that support construction, transportation, and site services to scale back commitments and protect cash flow.
Some of the implications of cancelled or denied pipeline construction projects for equipment-leasing clients include:
- Reduced demand for services, equipment, and operational support
- Increased focus on cost control, cautious spending, and preserving cashflow
- Deferring or scaling back equipment investments
- Reduced contract opportunities and increased competition for available work
For example, the cancellation of the $15.7 billion Energy East pipeline project in October 2017 demonstrated how pipeline disruptions impact Canadian business owners across multiple sectors. When the project was shelved due to shifting regulatory hurdles and mounting delays, the economic fallout trickled down from major energy corporations to small and medium-sized domestic businesses, halting billions in projected local earnings and directly cutting revenue to non-oil businesses and service providers in equipment, engineering, and manufacturing.
Approvals
An approved pipeline project creates a window of opportunity for small businesses to secure equipment or align contractors.
Some of the implications of pipeline approvals for equipment-leasing clients include:
- Increased demand for equipment, often needed in large volumes and on tight timelines
- Increased contract and job opportunities, especially during early construction phases
- Increased demand for infrastructure support and equipment up front, which can result in pressure on cash flow
- Regional economic lift as local service providers benefit from increased activity tied to pipeline construction
In the past, bottlenecks in pipeline construction restricted Canadian crude from reaching global markets, but the completion of pipelines has boosted Canadian export capacity to global markets. The 2018 Trans Mountain Expansion Project, which centered on the construction of a second pipeline along the route of the existing Trans Mountain pipeline, generated $52.8 billion in total economic activity during its initial construction phase and created tens of thousands of jobs during its construction. The project heavily relied on private local contractors to handle environmental monitoring, wildlife management, and site security and on equipment businesses to clear land, move earth, and supply heavy machinery.
How can businesses benefit from equipment leasing?
Leasing equipment helps businesses exercise stronger control over their cash flow, allowing them to scale capacity up or down according to changing market conditions. This enables businesses to take on new work without being locked into owning equipment if a project slows down or stops.
Whether they are approved or cancelled, Canadian pipeline projects affect contractors, transport companies, construction firms, and service businesses that depend on energy-sector activity. When demand is unpredictable or changes quickly, flexible equipment leasing provides a strategic advantage by giving access to machinery without committing to long-term ownership costs. Leasing allows businesses to scale operations during periods of high activity while maintaining flexibility during downturns.
Sources
- https://boereport.com/2026/01/05/five-things-to-watch-in-canadas-oil-and-gas-industry-in-2026/
- https://boereport.com/caoec-rig-count/
- https://www.aer.ca/data-and-performance-reports/statistical-reports/alberta-energy-outlook-st98/pipelines-and-other-infrastructure
- https://www.woodwayenergy.com/economic-impact-of-natural-gas-pipeline-projects-on-local-communities/
- https://www.capp.ca/wp-content/uploads/2026/05/Understanding-the-WCS-WTI-Differential-April-17-2026.pdf
- https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/market-snapshots/2022/market-snapshot-historical-trends-canadian-oil-gas-investment.html
- https://www.canadianfuels.ca/industry-facts/conventional-fuels/gasoline-prices/
- https://www.canada.ca/en/campaign/trans-mountain.html
- https://www.transmountain.com/news/trans-mountain-is-taking-care-of-business
