Carney Faces Opportunity to Accelerate Canadian Oil and Gas Development

Canadian Prime Minister Mark Carney has emerged from recent byelections with a reinforced parliamentary majority and fresh evidence that Canadians are prepared to trust his leadership during economic uncertainty. The Liberals swept all three contests, leaving them with 173 seats in the 343-seat House of Commons.

The proposed one-million-barrel-per-day oil pipeline from Alberta to the West Coast is a significant project that would provide new capacity and expand Canada's access to Asian and other global markets. Carney should not allow delays and should make a decision on whether it is in Canada's national interest by October 1.

Carney also needs to endorse the Northern Shield Energy Corridor proposed by Alberta Premier Danielle Smith and Ontario Premier Doug Ford. This pipeline would run from Hardisty, Alberta, to refining facilities in Sarnia, Ontario, and could strengthen domestic energy security and supply Ontario refineries with more Western Canadian crude.

The government has already advanced the proposal to the Major Projects Office, which is conducting consultations before deciding whether it should be designated a project of national interest. Carney's strongest argument for moving forward with these projects is that the world has changed, and Canada faces an increasingly unpredictable United States, growing global competition for investment, and an urgent need to increase productivity, exports, and national income.

Ottawa could move quickly on several fronts, including establishing a single federal decision-maker and enforcing timelines for major energy projects, removing the proposed oil and gas emissions cap, providing long-term certainty for carbon capture investment tax credits, and making industrial carbon-pricing rules predictable beyond the next election cycle.