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Trump’s promises should prompt major rethink of Canadian energy policy

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From the Fraser Institute

By Elmira Aliakbari and Julio Mejía

In three weeks, the United States will have a new president. And despite Donald Trump’s pledge to “unleash” the American oil and gas sector by cutting red tape and accelerating permit approvals, the Trudeau government remains committed to constraining Canada’s oil and gas industry. The result? More investment to the U.S. and less to Canada. To prevent Canada from falling further behind the U.S., the government must reverse harmful policies that drive investors away.

Even before Trump’s victory, Canada’s oil and gas sector was less attractive for investment compared to the U.S. According to a 2023 survey of oil and gas investors, 68 per cent of respondents said uncertainty about environmental regulations deters investment in Canada’s oil and gas sector compared to 41 per cent in the U.S. And 54 per cent said Canada’s regulatory duplication and inconsistencies deter investment compared to only 34 per cent for the U.S.

This negative perception reflects years of policy decisions that have consistently undermined Canada’s oil and gas industry. To name a few.

In 2016, just one year after taking office, the Trudeau government cancelled the Northern Gateway pipeline from Alberta to British Columbia’s coast. The $7.9 billion project, previously approved by the Harper government, would have expanded market access and boosted exports to Asia.

In 2017, the TransCanada energy company withdrew its application for the Energy East and Eastern Mainline pipelines from Alberta and Saskatchewan to the east coast, which would have expanded access to European markets. The projects became economically unfeasible after the Trudeau government required the company to account for greenhouse gas emissions from oil production and consumption—not just transportation, a requirement that was never part of prior environmental assessments. (Incidentally, that same year Prime Minister Trudeau vowed to “phase out” fossil fuels in Canada.)

In 2019, the Trudeau government enacted Bill C-69, which introduced subjective criteria—including the “social impact” and “gender implications” of projects—into the evaluation of major energy projects, creating significant uncertainty. That same year, the government passed Bill C-48, which bans large oil tankers from B.C.’s northern coast, further limiting access to Asian markets.

In 2023, the Trudeau government announced plans to cap oil and gas sector emissions at 35 per cent below 2019 levels by 2030—while leaving other sectors in the economy untouched. This will likely force energy producers to limit production. And the government’s new methane regulations and rules, which require fuel producers to reduce emissions, have added to the sector’s costs and regulatory challenges.

Predictably, these policy decisions have taken a toll. Investment in the oil and gas sector plummeted over the last decade, from $84.0 billion in 2014 to $37.2 billion in 2023 (inflation adjusted)—a 56 per cent drop. Less investment means less money to develop new energy projects, infrastructure and technologies, and consequently fewer jobs and less economic opportunity for Canadians across the country, especially in Alberta, which has been a destination for workers seeking high wages and more opportunity.

Now in 2025, Trump wants to attract investment by streamlining processes and cutting costs while Canada drives investment away with restrictive and costly regulations. If Ottawa continues on this path, Canada’s leading industry—and largest source of exports—will lose more ground to the U.S. To restore our competitiveness and attract investment, the federal government must rethink its approach to the energy sector and scrap the harmful policies that will hurt Canadians today and in the future.

Elmira Aliakbari

Elmira Aliakbari

Director, Natural Resource Studies, Fraser Institute

Julio Mejía

Policy Analyst

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Doug Ford needs to ditch the net-zero pipedreams

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CAE Logo Dan McTeague

Congratulations are in order for Doug Ford, newly re-elected in Ontario to his third consecutive majority government. As a proud Ontarian myself, I wish Premier Ford great success, which will ultimately be measured not by how many votes he’s won, but by the quality of the policies he implements and how well he responds to the challenges which arise on his watch.

Of course, the two are related. Bad policy can instigate a crisis. And bad policy in the midst of one often transforms a challenge into a catastrophe. Just one instructive example: Remember that in the wake of the Stock Market Crash of 1929, President Herbert Hoover signed into law the Smoot-Hawley Tariff, which, as John Robson recently observed on Twitter/X, helped turn “a painful short-term correction into an agonizing decade of misery.”

That is a moment in history our American friends would do well to remember just now. Though Donald Trump has been crowing about the economic benefits of tariffs for decades, the historical record tells a different story. And, more importantly for us, no matter how much damage Trump’s tariffs do to the American economy, they will be worse for Canada.

This is a moment in which our country is in desperate need of political leadership. That isn’t going to come from Ottawa, where the Trudeau Liberals and their accomplices in the NDP have shuttered parliament for months so that they can hold a coronation for their fellow Green Elitist, Mark Carney, who is all set to double-down on the disastrous net-zero policies of his predecessor.

So we are going to have to rely, at least in the near term, on our premiers to respond to this crisis. And so far very few of them – the notable exception being Danielle Smith – have shown the kind of ingenuity and resilience we need at this moment.

Ford himself has done everything he can to make himself the face of Canada’s response to the tariff threat. He’s made a great show of removing (already purchased) American-made products from LCBO.’s shelves, he has pledged to put a 25% export tax on energy, and he’s threatened to cut off Ontario’s energy exports to the United States entirely. In defense of the latter, Ford said, “They want to come at us hard, we’re going to come back twice as hard.”

That might sound impressive, but unfortunately Canada lacks the economic capacity to “come back twice as hard.” Years of mismanagement, on the federal, provincial, and even municipal levels, have left us in a terrible position to negotiate with the world’s largest economy. We have taken every opportunity to shoot ourselves in the foot, chasing foolish net-zero pipedreams which have succeeded only in squandering our capital, and smothering the oil and gas industry upon which our prosperity relies.

Justin Trudeau and his cronies deserve a lot of the blame for that, but the Ford government deserves its share as well. Ford long ago drank the net-zero kool-aid. He embraced the so-called “green energy transition” to such an extent that his government renamed its energy ministry the ‘Ministry of Energy and Electrification,’ a nod to the idea that we need to move away from fossil fuels and embrace electrically-powered everything. Neglecting to mention, of course, where that electricity is going to come from. (Hint: it’s not from expensive and inefficient wind and solar projects! Which, by the way, Ford has also invested heavily in.) And, relatedly, he’s stated that he will not be happy until Ontario achieves a 100% zero-carbon electricity grid, moving away from affordable and reliable natural gas as an energy source.

On top of that, Ford has gone “all in” on electric vehicles, teaming up with Trudeau to invest tens-of-billions of taxpayer dollars in a bid to attract EV manufacturing to his province. This investment wasn’t looking so hot before Trump’s election – remember when the Ford Motor Company scrapped their plan to build EVs at their plant in Oakville, Ont, due to “an unexpected slowdown” in demand for battery powered cars? And it has looked much worse since, once Trump got to work repealing the Biden administration’s de facto EV mandate.

Without that mandate, there will be a few hundred million fewer potential EV buyers in the world. People aren’t exactly lining up to buy EVs if they don’t have to. And though Trudeau’s 2035 EV mandate is still in place, even the Canadian market is softer than expected, especially after the federal program subsidizing the purchase of EVs – to the tune of $5,000 a piece – ran out of money and ended abruptly earlier this year.

But despite the changed environment, Ford doubled down on his commitment to EVs during the campaign. His platform read, “A re-elected PC government would continue to make these investments regardless of any decision by the U.S.,” and Ford continually reaffirmed his intention to continue to “invest in the sector.”

This is worse than rearranging the deck chairs on the Titanic. It’s closer to setting fire to the few lifeboats the ship actually has.

Ontario’s voters have once again entrusted our province to Doug Ford. But if he doesn’t start taking this crisis seriously – by shoring up the province’s financial situation and increasing our competitiveness by changing course on EVs and kicking net-zero to the curb – he won’t be remembered as the first premier to win three consecutive majorities in over 60 years. Instead he’ll be remembered as the guy who took Ontario past the point of no return.

Dan McTeague is the president of Canadians for Affordable Energy and a former Liberal member of Parliament.

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Alberta

Alberta to unlock new market potential

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Alberta’s government has announced new steps to meaningfully act on the province’s ownership of its oil and gas resources and maximize resource revenue.

Alberta’s government will now collect bitumen royalties in-kind (BRIK) in addition to conventional royalties in-kind (CORIK), allowing the province to obtain the top price for oil resources and positioning Alberta as a potentially significant player in the global oil market.

The Alberta Petroleum Marketing Commission (APMC), Alberta’s commercial oil and gas agency, will now be able to combine conventional and bitumen royalty barrels to bring to market significant petroleum volumes that will spur private sector investments. This will give government the ability to seek new deals on Alberta’s energy resources internationally, making the province one of the largest global heavy oil market players and maximizing the return for Albertans.

On March 10, 2025, Premier Danielle Smith met with a global oil and petrochemical multinational to discuss a first-of-its-kind potential transaction that would see the overseas transport and sale of approximately two million barrels per month of Government of Alberta owned heavy oil via the APMC.

“This program gives the province greater say in where we sell our oil. Receiving bitumen royalties in-kind is another tool in our investment toolbox and will give us the opportunity to maximize our resource potential, become one of the most significant players in the heavy oil market and garner more value for Albertans.”

Danielle Smith, Premier of Alberta

“Alberta and Canada have benefited greatly from the innovation and investment of our partners, the companies driving our energy industry. This move will allow us to promote increased pipeline capacity and grow our global markets, which is good for Albertans, for industry, and for global energy security.”

Brian Jean, Minister of Energy and Minerals

Given the significant volume of conventional and bitumen royalty barrels that will become available over time, the APMC will seek agreements with other jurisdictions and industry players to ensure Albertans benefit to the greatest extent possible from the ownership of their natural resources. This will help improve and diversify markets. The transportation of these barrels will help incentivize pipeline capacity growth in support of Alberta’s aspiration to double its oil and gas production.

“APMC will work diligently to seek commercially prudent deals that make sense for Albertans and the Alberta energy industry. The opportunity exists to find transactions that will directly and indirectly secure extra value for Albertans, and the experienced team at APMC is committed to doing just that.”

Adrian Begley, CEO of Alberta Petroleum Marketing Commission

Faced with uncertainty around trade and security, Alberta’s government remains focused on diplomacy and continuing to build a resilient and diversified economy that is better positioned to withstand external shocks and ensure long-term prosperity.

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