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Workers in a utility vehicle flying a Canadian flag drive past an LNG processing unit called a train that is used to convert natural gas into liquefied natural gas is seen at the LNG Canada export terminal under construction in Kitimat, B.C., on Wednesday, September 28, 2022. Photo by DARRYL DYCK /THE CANADIAN PRESS
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Canada’s oil and natural gas industry has long been a key bridge to our historically closest ally, the United States. But recent events have made it clear: Our relationship with the U.S. has fundamentally changed and Canada must act decisively to defend its national economic interests.
Punitive tariff and annexation threats from President Donald Trump have exposed a hard truth — without energy security, Canada has no economic or national security. The “on-again, off-again” tariff on Canadian products is a direct hit to our economy, our energy industry, and our sovereignty.
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For too long, Canada has been complacent. Over the past decade we’ve allowed $280 billion in energy projects to be cancelled while our competitors surged ahead. The consequences of inaction are severe: lost revenue, lost jobs, and lost opportunities.
Canada needs to walk parallel paths — restoring trade stability with the U.S. should remain a priority, but we also must aggressively move to diversify our global customer base.
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First, our political leaders need to change the tone when we discuss Canadian oil and natural gas. For too long, political messaging has suggested that Canada’s largest export sector is dispensable. The next federal government must actively promote our world-class oil and natural gas industry as a source of strength, with a decades-long runway of project and growth opportunities.
Second, get new projects approved and starting construction. We have multiple liquefied natural gas (LNG) export projects in British Columbia, an offshore oil project in Newfoundland, and a major carbon capture facility — all backed by investors ready to invest billions. These projects would create jobs, expand our global market access, and reinforce our economic security. They also have strong Indigenous support, with some featuring direct Indigenous ownership interests.
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These projects check every box for what Canada needs, right now. A concerted effort to get them approved, break ground, and advance them as quickly as possible to completion will signal to global investors that Canada is serious about changing its approach to major projects.
Tariffs or no tariffs, Canada was not competitive for capital under President Joe Biden’s policy environment. Without significant changes, there is no way we can compete with the United States as President Trump initiates his dramatic reset of climate, energy, and tax frameworks.
So third, we urgently need a comprehensive policy reset. The next federal government must repeal the Impact Assessment Act and replace it with a more streamlined model. The unconstitutional and overly complex emissions cap must be abandoned. We need to restore predictability and efficiency to our regulatory system to attract investment — not just in energy, but across all major industrial and export sectors.
The evidence is clear. Over the past decade, Canada has fumbled major opportunities. Just one example: while the U.S. built eight LNG export facilities and became the world’s largest LNG exporter, Canada saw seven LNG projects cancelled and is still constructing its first.
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Despite this, Canada remains rich in potential.
We have some of the largest oil and natural gas reserves in the world — resources that can fuel our economy for generations. Diversifying exports into Asian and European markets will promote long-term stability. At home, ensuring reliable energy access for Ontario and Quebec must be a national priority.
For nearly 150 years, Canada and the U.S. have traded oil and natural gas, with Canada supplying 20 per cent of American crude demand and virtually all its imported natural gas. Our economies and energy networks are deeply integrated — yet Canada’s lack of leverage leaves us vulnerable.
Ending this trade war with the U.S. is imperative. But we can’t afford to be naive. The forces that brought President Trump — and his expansionist policies — into power may not disappear in four years.
The choices we make today will determine whether Canada becomes a global energy leader or continues to fall behind. With decisive leadership, smart reforms, and a renewed commitment to investment, we can unlock our full energy potential, create jobs, and build a resilient, tariff-proof economy that protects Canadian sovereignty.
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Lisa Baiton is president and CEO of the Canadian Association of Petroleum Producers.
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