Industry Calls for Fast-Tracking Oil and Gas Development
Prominent oil and gas executives in Canada have called on the federal government to declare an energy crisis and use emergency powers to accelerate the approval of major oil and natural gas projects. In an open letter addressed to political leaders, industry leaders urged Ottawa to prioritize energy expansion in the “national interest” and streamline regulations to approve key projects, such as pipelines and liquefied natural gas (LNG) terminals, within six months.
Adam Waterous, executive chair of Strathcona Resources Ltd. and one of the signatories, emphasized the critical role of the Canadian Energy Crisis sector in economic strength. “The energy sector is Canada’s only form of economic hard power,” Waterous stated, adding that the industry must grow to safeguard the country’s sovereignty.
The letter also advocated for repealing the federal industrial carbon tax, arguing that it undermines the competitiveness of the energy sector. Instead, industry leaders believe provincial governments should have the authority to implement their own carbon regulations. This stance indicates a shift in the sector’s previous alignment with national carbon pricing policies.
Concerns Over Investor Confidence and Trade Relations
The letter was signed by chief executives of Canada’s largest oil and gas companies, including Canadian Natural Resources Ltd., Suncor Energy Inc., Cenovus Energy Inc., and Imperial Oil Ltd., as well as major pipeline firms such as Enbridge Inc. and TC Energy Corp. The executives pointed to an unfriendly regulatory environment as a key reason why investors have shied away from Canadian Energy Crisis in recent years.
“Investors left the sector due to a regulatory environment that, frankly, was hostile to developing Canadian Energy Crisis infrastructure and energy projects,” Waterous said. “This letter lays out a formula to bring investors back and allow the private sector to drive growth.”
The appeal comes at a time of heightened trade tensions between Canada and the United States, particularly regarding tariffs that are set to take effect on April 2 under the Donald Trump administration. Amid these concerns, there is growing political and public interest in diversifying Canada’s energy trade partnerships and potentially reviving abandoned pipeline projects, such as Energy East and Northern Gateway.
Cenovus executive chair Alex Pourbaix noted that had these pipelines been completed, Canada’s current trade disputes with the U.S. would have been significantly less severe. “If we had built these pipelines, this tariff fight with the U.S. would be a mere inconvenience rather than an existential threat,” Pourbaix said.
Push for Policy Changes and Industry Competitiveness
Beyond fast-tracking approvals, oilpatch executives are also demanding major policy revisions, including an overhaul of the Impact Assessment Act (Bill C-69) and the removal of the oil tanker ban on British Columbia’s north coast. They are also calling for the elimination of the federal emissions cap on oil and gas production and the introduction of loan guarantees to facilitate Indigenous investment in energy projects.
The request to repeal the industrial carbon tax reflects growing concern about capital flight to the U.S., where Trump’s administration has significantly rolled back energy regulations. Conservative Leader Pierre Poilievre has already vowed to eliminate the federal industrial carbon levy if elected, allowing provinces to set their own carbon pricing rules.
Meanwhile, Prime Minister Mark Carney has signaled a different approach, having already scrapped the federal consumer carbon tax upon taking office. However, he is expected to increase the industrial carbon tax and introduce a European Union-style carbon border-adjustment mechanism, which would impose tariffs on imports from countries lacking carbon pricing.
Pourbaix expressed concerns that Canada’s carbon tax policies could make the nation’s energy sector uncompetitive. “No major oil- or gas-producing country in the world imposes a carbon tax at the level Canada does,” he said. “If we continue to increase costs on our industry while other nations do not, we risk putting Canada at a significant disadvantage.”
As political debates over Canadian Energy Crisis intensify, the oilpatch leaders’ letter is likely to fuel further discussions on Canada’s approach to energy development, economic competitiveness, and environmental responsibility.
