Oilpatch ‘optimistic’ following Trudeau’s resignation
‘There's some optimism that Canada will finally be a place that’s open for business,’ Heather Exner-Pirot, a special adviser for oil and gas, said regarding Trudeau’s departure.
Analysts with oil and gas rejoiced Monday following Trudeau’s resignation. Though the sector made gains on the markets, some urged caution in the months ahead.
Heather Exner-Pirot, a special adviser on energy to the Business Council of Canada, said the oilpatch issued a sigh of “relief” with Trudeau’s announcement.
“There is some optimism now that Canada will finally be a place that’s open for business,” she said, with the S&P/TSX capped energy index closing at 0.79% yesterday.
Ottawa’s tenuous relationship with the sector, fueled by hostile environmental policies, made Canada’s staple industry “uncompetitive” on the global markets.
Canadian oil and gas drilling has reached highs not seen in a decade, despite the Trudeau government’s anti-energy regime.
— Rebel News Canada (@RebelNews_CA) December 3, 2024
According to the Canadian Association of Energy Contractors, some 6,604 wells will be drilled next year, up by 448 from 2024.https://t.co/CMQcSTjNeb
Outside of a costly Trans Mountain expansion pipeline, the government stymied growth on account of its climate goals, from the “No More Pipelines Act” to the oil tanker moratorium along the west coast.
In addition, their proposed oil and gas production cap remains in limbo after Trudeau prorogued Parliament. It may only be revived by majority vote, when government business resumes on March 24.
“There will be confidence votes in March,” Trudeau told reporters. Meanwhile, the Business Council of Alberta called the cap a “discriminatory and divisive” policy that would have cost the province tens of thousands of jobs.
Scott Crockatt, vice-president of communications with the organization, applauded Trudeau’s resignation as its likely end. “The oil and gas emissions cap is going to see no further development … maybe not until after the next election,” he told the Globe and Mail.
Premier Smith says "under no circumstances" will Alberta agree to cut off oil and gas exports to the US after Doug Ford suggested halting Ontario's energy supply to the US in response to Trump's tariffs. pic.twitter.com/HO4K46V3Yo
— Rebel News (@RebelNewsOnline) December 12, 2024
However, the executive warned that Trudeau’s departure leaves Canada “rudderless,” amid tariff threats from the incoming Trump administration.
“It’s unclear what the next few months are going to look like, in terms of the Canada-U.S. relationship,” sighed Crockatt.
The Canadian Association of Petroleum Producers (CAPP) said the industry wants Canada to bring back investment into its resource sector.
Meanwhile, the Government of Alberta partnered with Enbridge to expand its pipeline capacity, with the aim of solidifying Canada as a key supplier of fossil fuels.
Premier @ABDanielleSmith on Fox Business discussing the restart of KXL, the mutually beneficial relationship between Alberta and the USA, and her trip to Trump's inauguration. pic.twitter.com/Gkpwqrbmkp
— Sheila Gunn Reid (@SheilaGunnReid) December 4, 2024
By signing a January 6 letter of intent, Enbridge and the Alberta Petroleum Marketing Commission, which manages the province’s natural resources, will work towards boosting market access along the company’s 29,000-kilometre network.
Premier Danielle Smith said her goal of doubling oil production becomes more feasible with the letter of intent. “We look forward to partnering with them to enhance cross-border transport solutions,” she said.
“This will also allow us to play a role in supporting the United States in its energy security and affordability goals.”
“America is our best friend and trading partner,” Smith told Fox News. “We benefit from more oil production. America benefits from more oil production.”
“Madame Premier, you want to ‘Drill, Baby Drill’ … and send your oil to America, is that right?” the host asked. “It is,” she replied. “I’ve been wanting to double production in Alberta since I got elected.”
In usual "Drill baby, Drill" fashion, insiders are saying that President-elect Donald Trump wants to bring back the Keystone XL Pipeline on day one of his administration.
— Rebel News Canada (@RebelNews_CA) November 22, 2024
MORE: https://t.co/jzfEBjWGJD pic.twitter.com/oVM7ZtBvok
Despite a successful bid to cancel the Keystone XL pipeline, oil and gas proponents say demand for Canadian crude remains high.
The United States produces 13 million barrels of oil daily but consumes 20 million, reported the Epoch Times. Alberta already supplies 4.3 million barrels and hopes to fill the entire shortfall by expanding pipeline capacity and crude oil production.
U.S. refineries are equipped to process heavy oil, with Alberta’s pipeline already connected to around 50 refineries, Smith said. “We’re a lot more optimistic about this plan going ahead with the new administration and their outlook coming in.”
The province says the working group will work to streamline regulations, as current processes are “too slow and too cumbersome.” The potential revival of Keystone XL would allow the province to meet that oil and gas demand, Smith added.
Alex Dhaliwal
Calgary Based Journalist
Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.
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COMMENTS
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Bruce Atchison commented 2025-01-08 16:37:02 -0500Trudeau’s resignation is fake. He’ll be doing things behind the public’s back to assure all his cronies get patronage appointments and contracts. What a weasel Trudeau is!
