JAY GOLDBERG: Canada should counter tariffs by unleashing Canadian energy

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With the United States imposing punishing tariffs on Canada’s economy, it’s never been more important to strengthen Canada’s economic position and competitiveness. 

A major key to achieving that goal is unleashing Canadian energy. 

Over the past decade, the Trudeau government has stifled the growth of Canada’s oil and gas industry at virtually every turn. 

Canada should be an energy powerhouse. Instead, our nation’s energy infrastructure is so deficient that provinces in eastern Canada are importing oil from countries like Saudi Arabia. 

Canada should be exporting its energy to the world. Instead, much of our oil has to be refined in the United States, forcing Canadian exporters to sell it at lowball prices and allow American refineries to earn profits that could otherwise be earned by Canadians. 

And when it comes to natural gas, leaders of countries like Germany and Japan have come to Canada and pleaded with the Trudeau government to develop more and export it to meet global demand, only to be told there’s no business case. 

Under Prime Minister Justin Trudeau’s watch, since 2015, $670 billion worth of natural resource projects have either been cancelled or suspended, according to Canada Action. 

Among the 31 projects that have been cancelled or put on hold since 2015 include Energy East, Northern Gateway, Pacific Northwest LNG, and Énergie Saguenay. 

These projects could have generated tens of billions of dollars of economic growth, increased the value of Canada’s exports, and allowed Canada to diversify its trading relationships.

The oil and natural gas industry accounts for 3.2% of Canada’s GDP. Had the Trudeau government facilitated and encouraged energy projects instead of standing in the way, that number could be much higher, the nation could be much richer, and Canada’s energy could be helping to power the world.

Plus, more energy production here at home translates into lower costs for consumers, who are struggling to make ends meet. A stunning 50% of Canadians say they’re currently $200 away from not being able to pay their bills. 

Those millions of families could sure use lower energy bills. 

How has the Trudeau government blockaded the energy sector?

One major culprit is Bill C-69, known by its detractors as the “No More Pipelines Law.”

The bill was passed in 2019 and introduced a series of new regulations, assessments, and studies that created delays and uncertainty, driving away potential investment and proposals for new projects. 

The legislation made it much harder to approve new projects than had been the case under the Harper regime.

The federal carbon tax has also put Canada at a distinct disadvantage compared to countries like the United States, which don’t place similar burdens on domestic producers. 

And, in some cases, the Trudeau government has outright blocked energy projects.

For the sake of Canada’s economy, particularly as the country faces U.S. tariffs and confronts the need to diversify, the federal government must end its politics of roadblocking and unleash Canada’s energy sector.

No less than 77% of Canada’s exports go to the United States, including $150 billion in oil, natural gas, and petroleum products. 

Canada needs to diversify export markets, and that includes for energy. To do that, we need more pipelines to send our energy overseas instead of simply sending the vast majority of it south of the border.

The Northern Gateway Pipeline would have allowed over half a million barrels of oil per day to be sent to Asia, according to the Canadian Association of Petroleum Producers.

Energy East could have sent 1.1 million barrels per day from Alberta to eastern Canada, where it could have then been refined and exported to Europe. 

Énergie Saguenay would have sent 10.5 million tonnes of Canadian natural gas to Europe each year, with Germany already prepared to sign on the dotted line as a buyer.

Each of those projects was cancelled by the feds. And those are but three examples.

No one in Canada wanted to see the Trump administration impose tariffs on the Canadian economy. As a response, Canada should be doing everything it can to diversify its economy. 

Given the global demand for energy, one of the best ways for Canada to pursue trade diversification is to fulfill its destiny as an energy powerhouse. 

It’s time to build pipelines, approve projects, build new partnerships, and equip Canada’s energy sector with the tools it needs to power the world. 

– Jay Goldberg is the Canadian Affairs Manager at the Consumer Choice Center