logo
ENع
Oilpatch faces more frustration over federal environmental policies as Liberals take power again

Oilpatch faces more frustration over federal environmental policies as Liberals take power again

Yahoo29-04-2025

There aren't many signs of optimism emerging from the Canadian oilpatch that a fourth-straight Liberal government in Ottawa will be a boon for energy development in Canada.
Distrust of the Liberals and longstanding frustration over the party's policies on energy, including the Impact Assessment Act (Bill C-69 or the 'no-more-pipelines act') and the federal emissions cap on oil and gas, appear not to have been alleviated by Mark Carney's campaign pledge to 'build Canada strong' with a renewed focus on the economy.
'I'm troubled by the fact that most of these things the prior administration put in place, Mark Carney has not committed to altering or changing. In fact, he's committed to standing behind some of these really damaging bills,' Precision Drilling Corp. chief executive Kevin Neveu said, noting Carney's addition of a carbon border adjustment mechanism to the existing stack of emissions policies.
'When you continue focusing on these border-based carbon policies and internal carbon policies, you're putting the climate agenda as a top policy priority, which I think is wrong-minded. Completely wrong-minded.'
A recent survey of energy executives and institutional investors suggests that Monday's election outcome doesn't bode well for oil and gas investment in the months and years ahead.
ATB Capital Markets' annual spring energy survey of about 60 executives from oil and gas companies and energy service providers, along with 40 institutional investors, said 73 per cent of them viewed a Liberal minority government as having a negative impact on their willingness to grow or reinvest in Canadian operations or equities, with 30 per cent considering it 'significantly negative.'
The survey was conducted last month, but the results were only released Tuesday because ATB's status as a Crown corporation limits what it can publish during the election period.
The Canadian oilpatch and its investors viewed a Conservative government as moderately or highly favourable to energy investment, according to the survey.
Federal energy and environmental policies ranked as the most pressing concern facing the Canadian energy sector for the sixth consecutive survey, ATB said. U.S. tariffs and Canada's reciprocal tariffs ranked behind access to capital on a list of the sector's top perceived risks.
'We do need to focus on sort of not doing damage to ourselves in this country,' Tristan Goodman, president of the Explorers and Producers Association of Canada, said. 'Federal policies have broadly not been constructive or positive in helping develop natural resources generally, not just in energy, but broadly in mining and other types of projects — they have been absolutely unhelpful and negative for all Canadians.'
CIBC Capital Markets analyst Dennis Fong on Sunday said Canada's current regulatory environment must change in order for the sector to grow.
Elongated timelines for project approvals, which cause significant budget overruns or cancellation of infrastructure projects in their entirety, could continue to drive Canadian midstream companies in particular to focus on the U.S. 'at Canada's expense,' he said.
'Unless there are significant changes to the existing approval process for major infrastructure, we find it difficult to see additional major investment being attracted to Canada,' Fong said in a note about the federal election.
Many in the industry say they aren't optimistic about the possibility of a new oil pipeline being built to tidewater.
'I haven't seen anybody in the pipeline industry raise their hand yet to say that they're committing resources to considering another pipeline,' Neveu said. 'I am slightly more optimistic that additional gas capacity will come on for transporting natural gas and liquefied natural gas.'
Investors and companies may also be less likely to take risks or deploy capital under an unstable minority government, analysts said, since such governments rarely last more than two years. That's a hurdle that may prove particularly relevant for proponents of decarbonization who had hoped to see the sector advance big carbon capture and storage projects such as the Pathways Alliance proposal in the oilsands.
Some have also said they're concerned about the potential policy uncertainty that could come from the Liberals being forced to seek the support of either the NDP or Bloc Québécois in order to remain in power.
National Bank CEO calls for new energy projects, unity, as tariffs put 'pause' on economy
What's next for carbon tax and why is Canadian industry worried?
But others have expressed some hope of a thawing in relations with Ottawa under Carney's leadership, particularly in comparison to the hostilities that sometimes showed under former prime minister Justin Trudeau.
'He has clearly backed off the overt warfare and the vocal opposition to oil and gas,' Advantage Energy Ltd. chief executive Michael Belenkie said. 'He recognizes that the crisis of confidence that (Donald) Trump sort of pushed us into requires that we probably don't shoot ourselves in the foot anymore when it comes to resource development.'
mpotkins@postmedia.com

Hashtags

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Canadian ambassador says there's a 'good path forward' to a trade deal with the U.S.
Canadian ambassador says there's a 'good path forward' to a trade deal with the U.S.

Yahoo

time13 minutes ago

  • Yahoo

Canadian ambassador says there's a 'good path forward' to a trade deal with the U.S.

Canada's ambassador to the United States, Kirsten Hillman said she "firmly" believes that both countries could reach a trade deal within the 30-day deadline discussed at the G7 summit in Alberta last week. "We can't do anything to force the U.S. side to come to a deal, but we do think we have a good path forward if we're able to take it," she said during an interview on Rosemary Barton Live that aired on Sunday. Hillman said it's "too soon to tell" whether all U.S. tariffs imposed on Canada will be removed, and she stopped short of saying whether the federal government is willing to accept the continuation of some tariffs. "These are things that will work themselves out in the next number of weeks," she said. Canada is fighting for "open trade and stability" for Canadian workers and businesses, Hillman said during the interview. WATCH | Canadian ambassador to U.S. discusses ongoing trade talks: Prime Minister Mark Carney appointed Hillman as Canada's chief negotiator with the U.S. amid heightened trade tensions, CBC News has learned. This role comes in addition to her duties as Canada's ambassador to the U.S. Hillman previously worked on the team negotiating the Canada-United States-Mexico Agreement during U.S. President Donald Trump's first term and as Canada's chief negotiator for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Her expanded duties now position her in bilateral talks as U.S. Trade Representative Jamieson Greer's counterpart. Since Carney and Trump set the 30-day deadline while meeting at the G7 in Kananaskis, Alta., on June 16, Hillman has had three meetings with her U.S. counterparts — one immediately following the leaders' bilateral, the second on the following day with Greer and another on Friday that included Intergovernmental Affairs Minister Dominic LeBlanc, who is also the minister responsible for Canada-U.S. trade. More talks are planned throughout this week. The conversations with the U.S. are focused on different topics, including fentanyl, border security and Arctic defence, although the leaders are focused on tariffs. Hillman said it's still unclear whether defence and trade will be part of one deal coming within the next 30 days. Trump has said "many times" that he likes tariffs, Hillman said. "It's up to Canada to demonstrate we can achieve the same goals with the United States through other means that don't necessarily involve these punishing tariffs, especially on strategic goods." WATCH | PM may raise counter-tariffs on U.S. steel, aluminum if deal delayed: Just days after Canada and the U.S. set a 30-day deadline, Carney signalled he's willing to go higher with Canada's retaliatory tariffs if no agreement is reached. Canada's counter-tariffs on steel will go up or down, depending on trade progress by July 21, in response to U.S. metal tariffs that are now at 50 per cent. Industry Minister Mélanie Joly told CBC Power & Politics host David Cochrane that Canada is taking "measures like [it's] never done" in the free-trade era to protect the steel and aluminum sectors. "It's really important for Canada to show strength and resolve at the negotiating table," Hillman said. "Regardless of what we might hear the president say from time to time, they need us."

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store