Energy
Energy wise, how do you even describe 2024?

From the Frontier Centre for Public Policy
By Terry Etam
There still remains a full court press in North America/western Europe among certain socioeconomic classes to “just stop oil” and the like. While we as an industry in many ways remain in our foxholes, and the opponents of hydrocarbons roam freely, looking to criminalize if at all possible any positive dialogue about the value of hydrocarbons.
Huh. Look at that. It’s been ten years since I started writing about energy. Not that that particular trivia interests anyone, why would it, however it is interesting to look back at the impetus for writing and how that has changed.
Ten years ago, as I worked in a communications department for an energy infrastructure business that did not like publicity of any kind whatsoever, it began to dawn on me how dangerous were the habits that formed thereof, and how far reaching the consequences. As but one example, anti-pipeline activists were all over Washington DC like ants on a mound, pressuring the government to kill the Keystone XL pipeline. They swarmed social media and a motivated army spread the gospel like wildfire, truth be damned.
The pipeline industry looked at the energy ignoramuses and kind of just sniggered, for they knew they were right – pipelines were and are the safest and most reliable form of liquid/gas transportation, forming a global industrial backbone we can’t even imagine living without – and there seemed a largely prevailing attitude in industry that these pipeline facts were so glaringly obvious that everyone would figure it out. I still hear the chortling: “Look at those lunatics, protesting pipelines without knowing they’re standing on one that’s been there for 40 years.”
Yeah, well, the lunatics did pretty well didn’t they… Keystone XL is a distant memory, the US Mountain Valley Pipeline is years late and twice over budget, and even TMX is only now limping into service at what, about 700 times over budget and equally late… I shudder to think what kind of back room deals were cut with extremists who promised TMX would never be built and yet now stand silent. If we had a conservative prime minister at the helm now trying to complete TMX, I would bet my ears that the going wouldn’t be as protest-lite as it is now.
Ten years ago, the impetus was to fill a void in public energy knowledge because there wasn’t much of an effective voice that was doing so. If there was, there was scant evidence of any success. So that was kind of fun, going for the low hanging fruit of explaining energy nuances to a public that cared about nothing except utility bills and what it cost to fill up the family beast.
But that excitement faded as the energy industry’s inability to articulate its value was overwhelmed by the likes of Greta Thunberg, a Swedish teen that was hoisted onto the shoulders of cagey mobs, and thrust into the public consciousness as some sort of Jesus-like figure. At that point, the battlefield was completely overrun, and the oil/gas industry seemed to head underground and wait for the storm to pass. What a mistake.
There still remains a full court press in North America/western Europe among certain socioeconomic classes to “just stop oil” and the like. While we as an industry in many ways remain in our foxholes, and the opponents of hydrocarbons roam freely, looking to criminalize if at all possible any positive dialogue about the value of hydrocarbons. But. The anti-fossil fuel people are so busy working on Orwellian regulations/policies/roadmaps that they haven’t looked over their shoulders at the storm clouds brewing, the ones that hydrocarbon producers always knew would arrive.
As seven out of eight billion people on earth strive to live like the west does, the inevitable is happening: global demand for energy, in all forms, is soaring, and absolutely no one wants to take a step backwards in terms of standard of living. The world wants to add a billion air conditioners, because those things are life-transforming (see: any modern glass-cube high rise residential/commercial building, modern hospitals/seniors centers, etc), and the comfy west wants to add an estimated $250 billion per year in data centers because we can and it looks fun.
We haven’t even begun to figure out how to rewire the world for an energy transition even if we used energy consumption from 20 years ago as the starting point; today, we can’t keep up using all our resources. Every year, we set new records for solar installations, wind installations, coal consumption, oil consumption… and new natural gas infrastructure is being built around the world backed by multi-decade contracts. The fight over nuclear continues in the oddly ridiculous way it now goes, with countries within the same jurisdiction (EU, for example) shutting down nuclear facilities (Germany) on safety or environmental (?) grounds while countries right beside them add new ones. In the US, the same craziness is happening within the country; places like New York shuttering nuclear facilities while other parts of the country develop new ones.
What makes energy commentary challenging these days is that we’ve become desensitized to such insanity, we are pickled in it, and treat it as just the regular public discourse. I mean really. Look at Germany’s self inflicted damage in shutting down its nuclear plants on the grounds of safety. How much safer are Germans if Belgium builds new ones next door?
We’ve become used to the blaring theme “electrify everything” when we can clearly see, if we choose to look, that electrifying anything at all is becoming more challenging, with grid operators all over the place issuing warnings about potential energy shortages/rolling blackouts or brownouts/falling grid reliability.
AI is coming. Like a freight train. No one is prepared for it. Anyone paying attention is sounding the alarm bells: Power consumption is going to go through the roof. And that is in addition to a world that continues to set new energy usage records relentlessly, a trend that seems unstoppable and huge even before AI.
The storm clouds are there, they are growing, and no one wants to look up.
And then we need to set this insanity against a truly mind-boggling global geopolitical framework that looks like something out of Monty Python.
China is an amazing object, like a parallax, that looks completely different depending on your vantage point. By that I mean: energy transition advocates, the ones that ‘just know’ that net-zero 2050 is inevitable and simply requires more ‘policy’, point to China as a green hero, installing more solar than any other country, at breakneck pace. At the same time, the opposite camp that ‘just knows’ that net-zero 2050 has no chance due to the sheer challenge point out that China is constructing new coal-fired power plants at a rate of two per week.
Both are right. So are the people that rejoice at how solar panels have become so much cheaper due to China’s manufacturing prowess, as are the people that point out the staggering environmental footprint of building all that stuff behind a somewhat opaque curtain.
The people that herald the rise of China’s EV adoption are right, but so are the people that fear China’s control of most of the critical mineral/metal supply/processing chain.
India is a rising behemoth. The EU still thinks it runs the world. The US’ leadership is a gym full of blindfolded shouting people running at full speed. Canada thinks it is the world’s conscience, to the extent it is still thinking at all, building foreign and local policy on the notion that Canadians are the global good guys, a selfless hero running around the globe’s stages eagerly saying politically correct things while back home the wheels are coming off. Watch us impale our economy on a stick just to show the world that no one can possibly be morally superior. Russia is a vodka-soaked-yet-clever power monger with some thousand-year-old chip on its shoulder and enough bullets to fill a million Ladas. The Middle East remains the Middle East, reliably distributing both petroleum products and anger to every corner of the world…
The world’s biggest economies are so far in debt that they don’t know what to do, and we must painfully watch central bankers craft new policies and plans under the faulty pretense that they do know what they’re doing. The US is adding a trillion dollars worth of debt every hundred days, and the gurus of monetary policy are watching the economy with the wisdom and effectiveness of a time-forgotten goat-herder buying a cell phone before he’s found out what electricity is.
The future is never certain. Obviously. There will be black swans, rare events that have major global seismic repercussions. Terrorists are pretty good at destabilizing the world with a flick of the wrist, doing more damage than a tsunami, but then there are tsunamis as well. And all sorts of human hijinks that can throw a spanner in the works quite easily because we are all one step away from snapping.
There will be new wars, apparently, the peace dividend nothing but a dead deer on the side of the road. Political polarization is so severe that at any given time some substantial percent of the population believes that if their political enemy gets elected that ‘the future of the nation is at stake’. In the US two very ancient people are leading these charges, and every single American I talk to says, in a burst of frustration, “How the hell did we get here, and why are those two the only choices?”
And all of us that pay attention to energy ask the very same questions about the energy world. We watch economic powerhouses like Germany and California screw themselves into the ground with remarkable efficiency. We can see these problems arising. We listen to grid operators that warn of coming instability instead of shouting them down or tossing them out and replacing them with people that toe the line.
The energy industry is, despite all the madness, making actual strides in reducing emissions, developing new types of energy, developing carbon sequestration options, working on hydrogen programs, integrating with all sorts of green technology. It’s tough slogging, because most attempts are met with chants of “greenwash, greenwash” by people that don’t want progress, they want fossil fuels dead and gone. As their vision of a solution, they throw soup on famous paintings. The world stands in awe, like watching a naked drunk lurch across a freeway, oblivious to his surroundings.
One good thing about the world of energy though, compared to the utter lunacy of the global political/geopolitical/sociological mess, is that we can see fairly clearly where energy is going. The crazed experiments, the building of castles to the sky, will slow to a pace that makes sense and is digestible. Global demand for oil, natural gas, and it looks like even coal will stay strong for several decades at least. Nuclear power will have a renaissance, and new technologies or battery breakthroughs will enter the scene at a rate that the world can handle. It won’t be pretty or linear or without strife, but that’s how it will be. People won’t live without cheap reliable energy.
So if you’re in the energy business, take heart – in the world of political theatre, reality is whatever you can get away with convincing the world that it is. In the world of energy, fuel is fuel, availability is availability, and we can at least count on the fact that despite all the handwringing and grandiose policy that reality can’t be evaded. It might be small comfort but at least it’s real.
Terry Etam is a columnist with the BOE Report, a leading energy industry newsletter based in Calgary. He is the author of The End of Fossil Fuel Insanity. You can watch his Policy on the Frontier session from May 5, 2022 here.
Energy
Ontario Leads the G7 by Building First Small Modular Reactor

A concept image of a GE Hitachi BWRX-300 small modular reactor (SMR), the nuclear technology Ontario Power Generation is using for its new project adjacent to the existing Darlington nuclear plant. (GE-Hitachi)
From Energy Now
Construction will create 18,000 Canadian jobs, add up to $500 million annually to Ontario’s economy and help secure clean, reliable energy
With electricity demand in Ontario set to soar by at least 75 per cent by 2050, the Ontario government has approved Ontario Power Generation’s (OPG) plan to begin construction on the first of four small modular reactors (SMRs) at the Darlington nuclear site. Once complete, this SMR will be the first of its kind in the G7, producing enough reliable, affordable and clean electricity to power the equivalent of 300,000 homes, supporting thousands of good-paying jobs across the province and helping secure Ontario’s energy supply for decades to come.
The construction of the four units will support the government’s plan to protect Ontario’s workers and economy by creating up to 18,000 Canadian jobs and injecting $500 million on average annually into Ontario’s economy. The construction, operation and maintenance of the four units will add $38.5 billion to Canada’s GDP over the next 65 years. The government has worked with OPG to ensure that 80 per cent of project spending goes to Ontario companies and that construction and operations will protect Ontario workers and jobs by sustaining an estimated 3,700 highly-skilled, good-paying jobs for the next 65 years.
“This is a historic day for Canada as we start construction on the first small modular reactor in the G7, creating 18,000 jobs for Canadians,” said Stephen Lecce, Minister of Energy and Mines. “This nation-building project being built right here in Ontario will be led by Canadian workers using Canadian steel, concrete and materials to help deliver the extraordinary amount of reliable and clean power we will need to deliver on our ambitious plan to protect Ontario and unleash our economy.”
The BWRX-300 is a small-scale nuclear reactor that uses commercially available uranium to generate power. The four SMRs will be vital to powering new homes, historic investments to build Ontario and fuel a thriving economy. Once complete, they will produce 1,200 megawatts (MW) of electricity, enough to power the equivalent of 1.2 million homes, to help bridge a power gap that could emerge in the early 2030s in the absence of net-new baseload power sources added to the grid.
More than eighty Ontario companies have already signed agreements with OPG to deliver this first-of-a-kind project, establishing themselves as leaders in the growing domestic and global markets for new nuclear technologies. The government has also negotiated additional commitments from GE Hitachi that will create jobs in Ontario, that will soon be unveiled.
Ontario’s Independent Electricity System Operator (IESO) concluded that the Darlington New Nuclear Project is the best option to meet growing demand in terms of costs and risks, when compared against non-emitting generation alternatives. This, combined with OPG’s outstanding track-record on the Darlington Refurbishment Project, factored into the government’s decision to support the Darlington New Nuclear Project.
Within Canada, the Ontario government and OPG are collaborating with power companies in Alberta, Saskatchewan and New Brunswick as they work towards the deployment of SMRs in their jurisdictions. Around the world, the government has helped secure job-creating agreements that deploy Made-In-Ontario components to build SMR’s for the world.
Advancing construction on the Darlington New Nuclear Project SMRs is just one part of Ontario’s Affordable Energy Future, the government’s vision as it plans for rising energy demand.
Quick Facts
- The government is supporting OPG’s $20.9 billion budget for the Darlington New Nuclear Project, which includes site preparation, engineering and design work to date, as well as the construction of all four small modular reactors.
- During project development OPG will continue to build respectful, collaborative relationships with the communities of the Williams Treaties First Nations, while pursuing potential opportunities for their equity partnership in the project. This would be a first-of-its-kind partnership in Canada for nuclear energy generation, reflecting the government and OPG’s commitment to ensure local First Nations benefit from new projects in their territories.
- Once complete, the Darlington New Nuclear Projects four SMRs will produce 1,200 megawatts (MW) of electricity, enough to power 1.2 million homes.
- According to the IESO, the province would need to build up to 8,900 MW of wind and solar paired with battery storage to replace the output of four SMRs. The IESO also concluded this alternative approach would carry significant risks including significant land requirements and the need for large scale transmission build out.
- The first SMR will cost $6.1 billion, along with costs for systems and services common to all four SMRs of $1.6 billion. Costs are expected to decline with each subsequent unit as efficiencies are gained, similar to the Darlington Refurbishment Project.
- OPG began site preparation for the first SMR in December 2022. Ontario announced that OPG would begin planning and licensing for three additional SMRs, for a total of four SMRs at the Darlington nuclear site in July 2023. OPG obtained a Licence to Construct (LTC) for Unit 1 from the Canadian Nuclear Safety Commission (CNSC) in April 2025.
- To reduce costs the Government of Ontario is exploring potential financial instruments that would benefit ratepayers, and in parallel, OPG continues to explore other optimal financing arrangements.
Quotes
“This is a proud achievement for Ontario – this small modular reactor project is not only powering our future, it is driving real results for our economy. With thousands of good-paying jobs, billions in economic impact, and made-in-Ontario expertise leading the way, we are showing the world what our workers and industries can achieve.”
– Peter Bethlenfalvy
MPP, Pickering-Uxbridge
“The launch of Canada’s first grid-scale small modular reactor at Darlington marks a major milestone for our Province—powering growth, creating jobs, and securing a clean energy future right here in Durham Region. This transformative project will strengthen our Region’s economy, provide long-term careers, and reinforce Durham’s role as a leader in clean nuclear innovation.”
– Lorne Coe
MPP, Whitby, Parliamentary Assistant to the Minister of Children, Community and Social Services, and Parliamentary Assistant to the Minister of Colleges, Universities, Research Excellence, and Security
“Today’s announcement is the next step to strengthening Ontario and Canada’s energy security while supporting thousands of good-paying jobs for workers in the region. Once complete, this SMR will be the first of its kind in the G7, delivering clean reliable and affordable electricity to homes and businesses.”
– Todd McCarthy
MPP, Durham
“As the first mover on SMRs, this made-in-Ontario project will create jobs for the province’s workers, contracts for Ontario’s booming supply chain, and showcase our capabilities and expertise to the world to further grow our domestic industry while strengthening Canada’s energy security. As we saw through the refurbishment project, building a fleet of SMRs with the support of Ontario’s strong nuclear supply chain will provide further opportunities to learn, identify efficiencies, and expand the supply chain. All of this invaluable, irreplaceable experience will prepare us to take on the next large nuclear project.”
– Nicolle Butcher
President and Chief Executive Officer, OPG
“This is a proud moment for GE Vernova Hitachi and Ontario as we move from vision to reality with construction of the G7’s first SMR, the BWRX-300. With dozens of Ontario-based suppliers contributing to this project, we’re not just building a reactor—we’re generating thousands of good-paying jobs, driving investment into communities across the province, and reinforcing Ontario’s global leadership in clean energy technology. That leadership is already opening doors to international export opportunities for Ontario companies, helping position our province as a global hub for next-generation nuclear innovation. GE has been part of Canada’s nuclear story from the very beginning, and we’re honoured to carry that legacy forward by delivering a made-in-Ontario solution that strengthens our economy and powers our future.”
– Lisa McBride
Country Leader, GE Vernova Hitachi SMR Canada
“Clarington is excited to team up with the Ontario Government and OPG to advance new nuclear technology. As we host the first SMR in the G7, we’re paving the way for clean energy that will benefit everyone. Our leadership in this global nuclear renaissance is thrilling. The Darlington SMR project promises thousands of jobs during construction and hundreds more during operations, boosting economic growth and job creation in Clarington now and in the future.”
– Adrian Foster
Mayor, Clarington
“The Ontario Government’s approval of OPG’s small modular reactor project at Darlington represents a major milestone in the province’s clean energy strategy. This project will deliver long-term economic and environmental benefits across Ontario, including thousands of skilled jobs and a reliable, low-carbon power supply. We commend the Province for its continued commitment to investing in innovative and future-focused energy solutions.”
– Olena Hankivsky
Mayor, Municipality of Port Hope
“I am excited to be part of this historic announcement. Haldimand County looks forward to working with Minister Lecce on bringing clean energy to Ontario, thousands of jobs and millions of dollars annually into Ontario’s Economy.”
– Shelley Ann Bentley
Mayor, Haldimand County
“The Township of St. Clair recognizes the very real impacts the projected shortage of power will have not only in our municipality, but also province-wide. That is why the Ontario Government’s announcement today authorizing the construction of the first of four small modular reactors at the Darlington nuclear site is very exciting.”
– Jeff Agar
Mayor, Township of St. Clair
“The Government of Ontario’s approval for OPG to begin construction on its trailblazing Darlington New Nuclear Project is leading the way in delivering the next generation of nuclear plants across North America and internationally. Aecon is proud to bring its diverse nuclear expertise and multidisciplinary capabilities to play a prominent role in safely executing this exciting project to meet the energy demands of future generations in Ontario.”
– Jean-Louis Servranckx
President and Chief Executive Officer, Aecon Group Inc.
“This is an exciting day for Clarington, Durham Region, and Canada. Being home to the first site globally to start construction on SMRs demonstrates the leadership role that our region plays in the new nuclear sector. This is a monumental step forward by the Ontario Government for energy security and availability in Canada. Congratulations to OPG on this milestone.”
– John Henry
Regional Chair and Chief Executive Officer, Regional Municipality of Durham
“Ontario’s SMR project builds on Ontario’s clean energy advantage by putting Ontario at the forefront of clean energy knowledge and technology that can be exported around the world. The OEA supports the Ontario Government’s plan to make the Province a world leader in nuclear energy and maintain nuclear power as a core element of Ontario’s clean affordable energy sector.”
– Vince Brescia
President and Chief Executive Officer, Ontario Energy Association
“Today’s announcement by the Government of Ontario turns vision into reality for the Province’s clean energy future. The construction of the Darlington New Nuclear Project will deliver clean, reliable power that our economy needs to thrive, while driving innovation, investment, and good-paying jobs across the province. By deploying the first grid-scale SMR in the G7, Ontario is cementing its place as a global nuclear leader and an emerging energy superpower.”
– Giles Gherson
President and Chief Executive Officer, Toronto Region Board of Trade
“The start of construction on this SMR is a meaningful step forward for Ontario and for Canada. It reflects what can be accomplished through strong leadership, technical excellence, and a clear vision for the future. It also carries real opportunity—for Indigenous-owned businesses to be part of critical infrastructure projects in ways that create long-term impact. We’re proud to support OPG in this work and to stand alongside other supply chain partners helping to drive this project forward.”
– Clint Keeler
President, Voyageur Services Limited
“This historic milestone by the Government of Ontario is not only a bold step forward in clean energy innovation, but a powerful demonstration of how local businesses can directly contribute to—and benefit from—nation-leading projects. We are proud to see so many Clarington businesses directly support the construction of the first SMR. We commend OPG and the Provincial Government for their commitment to local economic development and for working with Ontario-based suppliers. Their leadership sets the tone for what’s possible when industry and community work together to power our future.”
– Bonnie Wrightman
Executive Director, Clarington Board of Trade
“Ontario’s historic investment in small modular reactors is a powerful statement of confidence in our province’s skilled workforce and energy future. The Darlington SMR project not only secures clean, reliable power for generations, it creates thousands of good-paying jobs and reinforces our position as a global leader in nuclear innovation. LiUNA members are proud to be at the forefront of this transformative project, building the infrastructure that powers our economy, strengthens our communities, and ensures prosperity for working families across Ontario.”
– Joseph Mancinelli
International Vice President, Canadian Director, Labourers’ International Union of North America (LiUNA)
“The Ontario Building Trades and Helmets to Hardhats Canada proudly support the Ontario Government’s development of Small Modular Reactors (SMRs) as a key part of Canada’s clean energy future. The construction of SMRs offers prosperous careers for Building Trades workers including Canada’s veterans transitioning to civilian life. We stand ready to help build this next generation of nuclear technology safely, efficiently, and with the highest standards of craftsmanship.”
– James Hogarth
President, Provincial Building and Construction Trades Council of Ontario
“To begin construction on the SMR’s at Darlington amidst significant global uncertainty makes it crystal clear that Ontario is not about to hit the pause button or sit on the sidelines and wait. Rather at this pivotal time OPG and the Province are showing their commitment to ensuring that Ontario remains a front runner in clean, reliable baseload power production. At a time when we need to invest in our own energy security, and in the very men and women who power our great province… the government is doing just that in creating jobs, creating clean power, and creating the supply chain that will position us to showcase our world leading nuclear expertise. The International Brotherhood of Boilermakers congratulates OPG, the vendor partners, and the Ontario Government on their announcement to begin the construction phase of North America’s first grid-sized SMR.”
– Jonathan White
Director, International Brotherhood of Boilermakers
“The power sector labour market partners have negotiated a 5-year agreement that will provide the labour relations stability to make this historic project by the Ontario Government and OPG a success.”
– Alex Lolua
General Manager, Electrical Power Systems Construction Association
“As the union representing the professionals who operate Ontario’s nuclear facilities, the Society of United Professionals is glad to see the Government of Ontario’s approval for the construction of the Darlington Small Modular Reactor. Projects like this will mean more good quality, union jobs that you can raise a family on and support our communities. To electrify our economy, meet our long-term clean energy needs, and achieve Canada’s energy independence we will need SMRs to complement our large-scale CANDU nuclear facilities to power our future.”
– Rebecca Caron
President, Society of United Professionals
“Today marks a major step forward for Canada’s clean energy future. The start of construction on the first grid-scale small modular reactor in the G7 is a clear signal that Ontario is serious about decarbonization, energy security, economic growth and international opportunities. With a strong domestic supply chain and world-class expertise, our industry is ready to deliver, bringing clean, reliable power to more Canadians while supporting good jobs and local communities.”
– George Christidis
Interim President and Chief Executive Officer, Canadian Nuclear Association
“Salit Steel is proud to play a role in this landmark clean energy project. As a Canadian, family-owned company with over 120 years of experience in the steel industry, we are deeply committed to supporting nation-building infrastructure. We’re honoured to contribute our reinforcing steel expertise to a made-in-Ontario solution that will power homes, create good-paying local jobs, and position Canada as a global leader in nuclear innovation. This project by the Ontario Government and OPG is a pivotal step toward a cleaner, more sustainable energy future, and we’re proud to help build its foundation.”
– Steven Cohen
Owner, Salit Steel
“Small modular reactors are pivotal to Ontario’s clean energy and economic future. Ontario Tech University is pleased to see the commencement of construction on the first of four SMRs begin at Darlington. As the home of Canada’s only accredited undergraduate nuclear engineering program, we are dedicated to training the next generation of nuclear industry talent from entry to expert. Our students are uniquely positioned to support these investments and will drive innovation and lead the future of clean energy right here in Durham Region.”
– Dr. Steven Murphy
President and Vice-Chancellor, Ontario Tech University
“The Ontario Chamber has long advocated for investments in diverse forms of clean energy — including SMRs — to help meet electricity demand for a growing economy. Today’s announcement – and its exciting opportunities for Ontario companies – supports our businesses and workers, positions Ontario as a global nuclear innovation leader, and helps ensure clean, reliable and affordable energy to power our future.”
– Daniel Tisch
President and Chief Executive Officer, Ontario Chamber of Commerce
“The IBEW Local Union 353 appreciates all the continued hard work and support by the Ontario Government – we maintain the growth in developing education programs that support our members in preserving the quality of work that our customers expect. The experience with our members and contractors that we have gained over the last 10 years together has helped us to build valued partnerships and expand community outreach programs that are building our province.”
– Salvatore Maltese
Business Rep, IBEW Local Union 353
“BWXT applauds the leadership shown by the Ontario government and OPG to secure the economic and environmental future of Ontario through this historic nuclear energy project. Our team is now manufacturing the first reactor pressure vessel for Darlington and we proudly embrace our role as a key partner to the Canadian nuclear industry.”
– John MacQuarrie
President, Commercial Operations, BWXT
Economy
Canada’s Energy Wealth Is Bleeding South

From the Frontier Centre for Public Policy
Without infrastructure, Canada is losing billions while the U.S. cashes in on our oil and gas
Canada’s energy wealth is stuck in traffic, and our American neighbours are cashing in. It’s worse than that. Canada is bleeding millions of dollars daily because it lacks the infrastructure to export its natural resources efficiently.
While our oil and gas continue to flow—mainly to the United States—provinces like Alberta and British Columbia are forced to sell at steep discounts. This isn’t just an economic inefficiency; it’s a structural failure of national policy. The beneficiaries? American businesses and their governments which pocket the profits and tax revenues that should be circulating through the Canadian economy. This is no way to achieve economic sovereignty for Canada.
With U.S. interests reaping the rewards, this should have been a central talking point when Prime Minister Carney met with President Trump earlier this month.
Ottawa often offers the recent completion of the Trans Mountain Expansion (TMX) pipeline as an example of federal support for the energy sector. But such claims are misleading. Kinder Morgan, a private enterprise, had initially planned to build the extension without a penny from taxpayers. It withdrew only after being crippled by federal regulatory delays and political uncertainty.
Ottawa stepped in not as a benevolent saviour to help Albertans, but to prevent lawsuits and save face—ultimately overpaying for the pipeline and watching construction costs balloon to nearly six times the original estimate.
To now declare this bungled project a “gift” to Alberta, as a recent op-ed in the Toronto Star did, is not only tone-deaf: it’s an insult. It ignores the fact that Alberta’s taxpayers helped finance the very project Ottawa botched. It also reveals an astonishing lack of understanding of the historical, economic and political dynamics at play between Ottawa and Western Canada.
The tragedy is that TMX, despite its importance, is insufficient. Our infrastructure bottlenecks remain. With each passing day, Canada forfeits wealth that could fund essential improvements in health care, education and national defence.
According to the Frontier Centre for Public Policy, which has developed a real-time tracker to monitor these losses, the price differential between what we could earn on global markets versus what we settle for domestically adds up to $26.5 billion annually.
Ottawa’s reluctance to greenlight new infrastructure is a primary cause of this problem. Ironically, the losses from this reluctance in a single year would be enough to pay for another TMX, mismanaged or not. The solution lies in a national commitment to building utility corridors: designated routes that facilitate the movement of energy, goods and services unhindered across provincial boundaries.
Carney’s recent promise to remove all interprovincial trade barriers by July 1 is a nice soundbite. But unless it includes meaningful infrastructure commitments, it is bound to fail like every other rhetorical flourish before it.
Canadians should be rightly skeptical. After all, what Ottawa has failed to achieve in the 157 years since Confederation is unlikely to be accomplished in the next 60 days.
The political math doesn’t help either. The Bloc Québécois holds the balance of power in the 45th Parliament, and its obstructionist stance on national pipeline development ensures the advent of more gridlock, not less. The federal government continues to uphold Bill C-69—dubbed the “no-pipelines bill”—further entrenching the status quo.
Meanwhile, Canada remains in the absurd position of relying on U.S. infrastructure to transport oil from the West to Ontario and Quebec. This undermines our economic independence, energy security and national sovereignty. No amount of “elbows up” will correct this enormous gap.
If the prime minister is serious about transforming Canada’s economic landscape and making the country strong, he must bypass the Bloc by cooperating with the Official Opposition. A grand bargain focused on utility corridors, interprovincial infrastructure and national trade efficiency would serve Alberta, Saskatchewan, and every Canadian who depends on a strong and self-reliant economy.
The stakes are high. We need a more productive country to face challenges within Canada and from abroad. Billions in lost revenue could fund new hospitals, more schools and better military readiness.
Instead, along with the limited exports of oil and gas, we’re exporting great opportunities to middlemen—and greater economic strength—south of the border.
The path forward is clear. A strong, self-reliant Canada needs infrastructure. It needs corridors. It needs leadership.
Marco Navarro-Genie is the vice president of research at the Frontier Centre for Public Policy. He is coauthor, with Barry Cooper, of Canada’s COVID: The Story of a Pandemic Moral Panic (2023).
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