Canada ‘Back’ to Boost Energy Exports Amid Global Crisis: CERAWeek 2024

Canada is attempting to reassure energy industry executives in Texas that it is ready to significantly increase energy exports, as global markets grapple with instability stemming from the U.S.-Israel war against Iran.

Federal Natural Resources Minister Tim Hodgson, speaking at the CERAWeek conference in Houston this week, declared “Canada is back,” emphasizing the country’s potential to bolster energy supplies and grow exports, according to CBC News. The message comes at a time of heightened concern over potential inflation spikes and a possible global recession linked to the conflict in the Middle East.

While industry leaders welcomed Hodgson’s enthusiasm and the overall direction of Prime Minister Mark Carney’s government, they expressed a need for concrete action to demonstrate a serious commitment to becoming an “energy superpower” and overcoming Canada’s reputation for reluctance to expand energy supply, particularly oil and natural gas. Concerns center on the fate of past projects, including stalled oil pipelines and liquefied natural gas (LNG) export facilities.

“We know that our allies desperately need our energy, and they desperately need our critical minerals. It’s a matter of national security,” Hodgson said in an interview with CBC News. He noted a noticeable increase in interest in Canadian energy at this year’s conference, and highlighted the unprecedented presence of provincial politicians – including the conservative premiers of Newfoundland and Labrador, Nova Scotia, and Alberta – alongside federal representatives.

Hodgson suggested this display of unity between federal and provincial governments was not lost on conference attendees. “That’s an opportunity,” he said. “And I think 2026 will be when we take advantage of that opportunity.”

The federal government’s recent energy push has faced a mixed reception within Canada. Legislation passed last summer to swift-track “nation-building projects” drew criticism for potentially weakening environmental reviews and Indigenous consultations, as reported by CBC News. Ottawa has likewise introduced changes including reducing some environmental policies, such as the oilpatch emissions cap, and signed a memorandum of understanding with Alberta to support a potential new oil export pipeline to the British Columbia coast.

However, British Columbia’s premier continues to oppose the pipeline proposal, instead advocating for federal investment in a refinery within the province, according to CBC News.

Shell CEO Wael Sawan, speaking at CERAWeek, highlighted the potential for growth in Canada due to the low cost of natural gas and the shift in government support for the industry. Shell, the largest stakeholder in LNG Canada – which began exporting natural gas from British Columbia last summer – is currently considering an expansion of the project. “The underpinnings of that project continue to be very strong, which is plentiful gas supply in Canada, a government that is supportive now of major investment opportunities in the LNG value chain and a 10-day sailing time to Asia, which is today, of course, valued more than ever,” Sawan said.

TC Energy CEO François Poirier told CBC News that the policy changes enacted by Ottawa are beginning to translate into progress, though a faster permitting process is still needed. “In short, this government gets it,” he said. “From an execution standpoint, I would say we’re not quite there yet, but we’re making progress.”

The federal government is aiming to expand the energy sector and exports to the West Coast to diversify the economy and reduce reliance on the United States. However, attracting investment will require competing with other jurisdictions, including the U.S., where regulatory approvals for major energy projects can be completed in as little as six months, according to Enbridge executive Colin Gruending.

Ottawa has referred several energy projects to the Calgary-based Major Projects Office in an effort to expedite their development, including LNG projects on the West Coast. Gruending emphasized the need for improved policy, increased production, and pipeline infrastructure. “In Canada, we need improved policy, we also need improved and growing production to fill these pipelines, and then we need pipelines. So I think that’s the order: policy, production and pipelines. And at some point, the conditions will be right,” he said.

Kevin Krausert, CEO of Avatar Innovations, a clean energy accelerator, expressed optimism that the federal government’s actions will aid grow the energy sector, stating that global demand for Canadian oil is “screaming.” “We do need to figure out a way to prove to the rest of the world that if we are a stable energy superpower, it’s time to deliver,” he said.