Energy
Stop The Cap On Oil And Gas
From Project Confederation
With the United Nations’s 28th Climate Change Conference in Dubai generating headlines, we all knew it was only a matter of time before Canada’s radical eco-activist Environment Minister did something stupid.
And here it is, from Steven Guilbeault himself:
“The Government of Canada’s plan to cap and reduce emissions from Canada’s largest emitting sector is ambitious, but practical. It considers the global demand for oil and gas — and the importance of the sector in Canada’s economy — and sets a limit that is strict, but achievable.”
That’s right, folks – the Oil and Gas emissions/production cap is finally upon us.
We launched a campaign last year, around this same time, warning that this was coming.
Now, we know just how bad it actually is.
If you already agree that we should Stop The Cap On Oil And Gas,
click here to sign the petition, but if you want more details, read on!
The framework that’s being proposed by the federal government would cap emissions at 35% – 38% below 2019 levels.
How exactly would this be done?
What will it cost?
No one knows.
The federal government just says that they’ll release the details via regulation sometime next year.
Alberta Premier Danielle Smith is livid, issuing a statement:
“[The announcement is an] intentional attack by the federal government on the economy of Alberta and the financial well-being of millions of Albertans and Canadians.”
“Justin Trudeau and his eco-extremist Minister of the Environment and Climate Change, Steven Guilbeault, are risking hundreds of billions of investments in Alberta’s and Canada’s economy.”
Saskatchewan Premier Scott Moe echoed Smith:
“[The cap] will have serious economic impacts on Canadians and limit our sustainable Canadian energy products from providing heat and electricity to the world.”
“Saskatchewan will protect our constitutional right to build our economy in accordance with the priorities of Saskatchewan families and businesses.”
The federal government has been in legal hot water lately over constitutional overreaches – with the Supreme Court deeming the Impact Assessment Act unconstitutional in October and the Federal Court ruling the plastics ban unconstitutional in November.
Ottawa has consistently ignored provincial jurisdiction on a wide range of issues, and their inability to stay in their constitutional lane has been a major source of tension with the provinces.
This emissions cap is just the latest example, as natural resource development is guaranteed to be the sole jurisdiction of the provinces in the Constitution of Canada.
As such, the emissions cap is clearly unconstitutional – but even if it wasn’t, it would be a terrible policy anyway.
First, it’s an admission by the government that the carbon tax – their signature climate change policy – is not working.
The entire purpose of the tax was to be a “market mechanism” to reduce emissions, and yet now they’re admitting that they need even more regulations to reduce emissions.
This cap is a direct and deliberate attack on western Canada’s oil and gas industry.
Remember – the cap will not apply to any industry other than oil and gas.
Ontario’s automotive industry, Quebec’s cement industry, and other high-emitting industries in other parts of Canada are not having their emissions capped.
The cap also excludes refineries – even though that is part of the oil and gas industry – because many of Canada’s refineries happen to be in regions of the country that mostly vote Liberal.
If the federal government were actually concerned about the environment, they would implement policies designed to reduce emissions across all industries and all regions of Canada.
Instead, the hypocritical and political nature of Ottawa’s climate agenda reveals their true intentions and undermines the credibility of their entire plan.
That’s why we’re renewing our campaign calling on the federal government to back off, respect the Constitution, and stop infringing on provincial jurisdiction.
If you agree, please sign our petition to Stop The Cap On Oil And Gas:
Josh Andrus
Executive Director
Project Confederation
Alberta
Pierre Poilievre – Per Capita, Hardisty, Alberta Is the Most Important Little Town In Canada
From Pierre Poilievre
Photo by David Bloom / Postmedia file
From Energy Now
By Gary Mar
With the Trans Mountain Expansion online, we have new access to Pacific markets and Asia has responded, with China now a top buyer of Canadian crude.
The world is short on reliable energy and long on instability. Tankers edge through choke points like the Strait of Hormuz. Wars threaten pipelines and power grids. Markets flinch with every headline. As authoritarian regimes rattle sabres and weaponize supply chains, the global appetite for energy from stable, democratic, responsible producers has never been greater.
Canada checks every box: vast reserves, rigorous environmental standards, rule of law and a commitment to Indigenous partnership. We should be leading the race, but instead we’ve effectively tied our own shoelaces together.
In 2024, Canada set new records for oil production and exports. Alberta alone pumped nearly 1.5 billion barrels, a 4.5 per cent increase over 2023. With the Trans Mountain Expansion (TMX) online, we have new access to Pacific markets and Asia has responded, with China now a top buyer of Canadian crude.
The bad news is that we’re limiting where energy can leave the country. Bill C-48, the so-called tanker ban, prohibits tankers carrying over 12,500 tons of crude oil from stopping or unloading crude at ports or marine installations along B.C.’s northern coast. That includes Kitimat and Prince Rupert, two ports with strategic access to Indo-Pacific markets. Yes, we must do all we can to mitigate risks to Canada’s coastlines, but this should be balanced against a need to reduce our reliance on trade with the U.S. and increase our access to global markets.
Add to that the Impact Assessment Act (IAA) which was designed in part to shorten approval times and add certainty about how long the process would take. It has not had that effect and it’s scaring off investment. Business confidence in Canada has dropped to pandemic-era lows, due in part to unpredictable rules.
At a time when Canada is facing a modest recession and needs to attract private capital, we’ve made building trade infrastructure feel like trying to drive a snowplow through molasses.
What’s needed isn’t revolutionary, just practical. A start would be to maximize the amount of crude transported through the Trans Mountain Expansion pipeline, which ran at 77 per cent capacity in 2024. Under-utilization is attributed to a variety of factors, one of which is higher tolls being charged to producers.
Canada also needs to overhaul the IAA and create a review system that’s fast, clear and focused on accountability, not red tape. Investors need to know where the goalposts are. And, while we are making recommendations, strategic ports like Prince Rupert should be able to participate in global energy trade under the same high safety standards used elsewhere in Canada.
Canada needs a national approach to energy exporting. A 10-year projects and partnerships plan would give governments, Indigenous nations and industry a common direction. This could be coupled with the development of a category of “strategic export infrastructure” to prioritize trade-enabling projects and move them through approvals faster.
Of course, none of this can take place without bringing Indigenous partners into the planning process. A dedicated federal mechanism should be put in place to streamline and strengthen Indigenous consultation for major trade infrastructure, ensuring the process is both faster and fairer and that Indigenous equity options are built in from the start.
None of this is about blocking the energy transition. It’s about bridging it. Until we invent, build and scale the clean technologies of tomorrow, responsibly produced oil and gas will remain part of the mix. The only question is who will supply it.
Canada is the most stable of the world’s top oil producers, but we are a puzzle to the rest of the world, which doesn’t understand why we can’t get more of our oil and natural gas to market. In recent years, Norway and the U.S. have increased crude oil production. Notably, the U.S. also increased its natural gas exports through the construction of new LNG export terminals, which have helped supply European allies seeking to reduce their reliance on Russian natural gas.
Canada could be the bridge between demand and security, but if we want to be the world’s go-to energy partner, we need to act like it. That means building faster, regulating smarter and treating trade infrastructure like the strategic asset it is.
The world is watching. The opportunity is now. Let’s not waste it.
Gary Mar is president and CEO of the Canada West Foundation
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