Canada's Investment Climate Boosted by Energy Deal with Alberta

Canada's oil and gas sector is becoming more attractive for investment under Prime Minister Mark Carney, although the cost of doing business remains a challenge. Industry executives praised a recent energy deal between the federal government and Alberta that eliminated some environmental rules and set terms for a new industrial carbon pricing policy. ConocoPhillips Canada President Nick McKenna said the agreement significantly improves the risk profile of oil and gas investments in Canada.

The cost to do business is still a concern, according to McKenna, who noted that Canada is competing with other jurisdictions like the U.S., where the Trump administration has been pushing to boost oil and gas output. Alberta plans to submit a proposal for a second West Coast oil export pipeline before July 1, with the aim of starting construction by September 2027.

The proposed new pipeline would require oil sands companies to invest up to C$100 billion in new production, said Kendall Dilling, president of the Oil Sands Alliance industry group. The deal also ensures Alberta raises its carbon price over time, creating an incentive for heavy emitters to invest in pollution-reducing technology.