A group of 14 energy CEOs have written a letter to all major federal parties urging them to declare an “energy crisis” in Canada and use emergency powers to relax regulations within the industry and increase production levels.
The CEOs, who represent the 10 largest oil and gas companies and four largest pipeline companies in Canada, suggest several measures to support oil and natural gas investment and “remove the barriers we have imposed on ourselves over time.”
“By declaring a Canadian energy crisis and key projects in the ‘national interest’ the federal government will be able to use all its available emergency powers to ensure that the dramatic regulatory restructuring required to expand the oil and natural gas sector is rapidly achieved,” they said in the March 19 letter.
The letter was addressed to Prime Minister Mark Carney, Conservative Leader Pierre Poilievre, NDP Leader Jagmeet Singh, and Bloc Québécois Leader Yves-François Blanchet.
The CEOs are calling for regulatory simplification by revising or abolishing the Impact Assessment Act and oil tanker ban on B.C.’s north coast, which they said are “impeding development.” They are also requesting a reduction in regulatory timelines to allow approval of major projects within six months of application, as well as the provision of loan guarantees for indigenous communities to ensure they benefit from the development.
The letter also calls for Ottawa’s emissions cap for the sector to be eliminated. The Liberal government announced a cap-and-trade scheme in 2023 to achieve net-zero emissions by 2050, which the Alberta government has opposed.
Additionally, the letter calls for the carbon tax to be repealed to allow provincial governments to “set more suitable carbon regulations.”
Carney announced on March 15 the consumer carbon tax had been reduced to zero, and has planned to replace it with a system rewarding Canadians for making greener choices while making “big polluters” in industry pay for the system.
Conservative Leader Pierre Poilievre has said his government would remove the carbon tax for both consumers and industrial emitters, including the federal backstop that requires provinces to impose industrial taxes.
The CEOs said in the letter there is “increasing public support” for building new energy infrastructure such as oil and natural gas pipelines and liquid natural gas terminals, amid U.S. tariff threats.
Tariffs imposed by the United States have prompted initiatives in Canada to seek alternatives to lessen its reliance on the United States, which includes boosting interprovincial trade and expanding its trade relationships with countries in Asia and Europe. Energy has emerged as a concern because 97 percent of the country’s crude oil exports are transported to the U.S., where a 10 percent tariff has been levied on Canadian exports.
