Canada cannot afford to be held hostage to changing geopolitics. Let’s fast-track critical infrastructure so that we can easily access and sell Canadian energy.
Regulatory delays have kept us from expanding to global markets and have made us fully dependent on a single customer – the US. A 10% U.S. tariff on Canadian crude would cost us billions. At the same time, other trade partners have come to us urgently seeking partnership.
Treating this as an energy emergency will allow us to push through essential projects like Energy East, Northern Gateway, the Gazoduc pipeline, and LNG terminals ensures oil and gas energy is accessible to Canadians and the rest of the world.
Goals
Transform Canada into a truly independent energy superpower by eliminating export bottlenecks, and asserting our energy sovereignty. This means:
- Fast-track critical infrastructure by expanding TransMountain pipeline to maximize oil exports through the existing line; completing the Energy East1, Northern Gateway2, and Gazoduc pipelines within 24 months, expediting approvals for at least two new liquified natural gas (LNG) export terminals3, and establishing a maximum 90-day federal review timeline for new energy projects.
- Diversify energy exports by securing new pipeline and LNG terminal capacity to 10x the Canadian crude and natural gas exported to Asia and Europe to at least 30% within 5 years.
Background and Motivation
Oil and gas is essential to the Canadian economy. In 2023, the sector directly contributed $71.4 billion to GDP. When including indirect and induced effects it accounted for ~7.2% of the Canadian economy, supporting 900,000 jobs, making up 20% of our exports, and producing tens of billions of annual royalties to fund public services.
But, despite this critical role in our economy and the enormous potential wealth a fully developed oil and gas market could offer, we have shackled ourselves by failing to build essential infrastructure.
A lack of pipelines, LNG terminals, and other energy infrastructure means we are unable to fully transport or refine our oil and gas domestically. This means we are forced to sell nearly all our oil and gas to the U.S. at a steep discount and then buy back refined products at a premium. This has left us dangerously dependent on a single partner, meaning that any tariffs will cost us billions.
This is not only an economic issue but also a threat to our sovereignty. Our ability to control our own natural resources is slipping away, leaving us dependent on foreign decision-makers for energy security and economic stability.
- 96% of our crude oil exports go to the U.S. , leaving us at the mercy of American policy decisions. A 10% tariff on energy exports could cost the sector billions and cripple our economy. Without alternative markets, Canada has no leverage in pricing or negotiation. Further, oil for our Eastern provinces is supplied through pipelines transiting the U.S risking energy security of these Eastern provinces.
- Western Canadian Select crude is already trading at a $18.65 per barrel discount 4 due to bottlenecks and U.S. pricing power. Our producers are forced to sell at artificially low prices while American refiners profit from reselling Canadian oil at global market rates.
- Pipeline capacity is maxed out. The Trans Mountain Pipeline is operating at 80%5, and Pacific exports are bottlenecked. The infrastructure deficit means we are physically unable to transport more oil to world markets, even if demand exists.
- Regulatory gatekeeping has killed major projects. Energy East, Gazoduc, and Northern Gateway were stalled for years before being abandoned due to excessive review processes, legal challenges, and political obstructionism. This prevents Canada from securing long-term economic benefits from its own resources.
- Canada lacks a strategic energy infrastructure plan. Germany and the U.S. have proven that energy crises can promote fast action. The U.S. built the Trans-Alaska Pipeline in record time when faced with an oil crisis. Germany responded to energy shortages in 2022 by building an LNG import terminal in just nine months. Canada, however, continues to allow critical projects to languish in bureaucratic limbo, making us weaker on the world stage.
Treating this as a national energy emergency is the only way to break out of this situation. We must move with urgency to accelerate pipeline construction, approve export terminals, and remove regulatory bottlenecks that are preventing Canada from reaching its full potential. If we act now, we will create thousands of jobs, create long-term economic stability, and ensure energy security for future generations.
Real-World Solutions
Other nations have taken decisive action in energy crises, and so have we.
- Germany approved and built its first LNG import terminal in just 9 months to respond to its 2022 energy crisis7.
- The U.S. Congress passed the Trans-Alaska Pipeline Authorization Act in 1973 during the oil shock.They did this by overriding regulatory barriers to ensure construction started immediately and almost 1300 km of pipeline was completed in just over three years8.
- Canada used emergency measures to build the Trans-Canada Pipeline in the 1950s. We built 3500 km of pipeline in under three years9 and we can do this again!
What Needs To Be Done
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Immediately issue Orders in Council to push for high-priority projects specifically the expansion of TransMountain, construction of Energy East and Northern Gateway. These orders will allow us to bypass unnecessary regulatory and bureaucratic overhead, and create partnerships to make these projects compelling for developers and investors.
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Amend the National Energy Board Act and Impact Assessment Act to streamline approvals, reducing the average timeline from years to months. This will remove unnecessary regulatory bottlenecks while maintaining rigorous environmental standards.
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Establish the Emergency Energy Infrastructure Office (EEIO) as a centralized agency to coordinate federal, provincial, and private sector efforts. This office will be mandated to cut bureaucratic delays and ensure immediate action on critical projects.
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Mandate a 90-day approval timeline for essential projects by replacing sequential reviews with concurrent risk-based assessments focusing on unique risks versus standard or common risks mitigated through established processes. This will ensure all stakeholders operate under a strict but fair timeframe.
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Create an Indigenous Partnership Acceleration Office to accelerate consultations by providing funding and capacity to ensure meaningful participation, clear decision-making and equitable economic benefits for Indigenous communities, respecting historical rights and title.
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Maintain accountability by establishing quarterly progress reports to Parliament and create a public energy infrastructure dashboard tracking project timelines and completion rates. Success will be defined by:
- The number of projects approved and under construction within 12 months
- Completion of the TransMountain expansion
- An expedited process for any serious developers (either previous proponents or new ones) for projects to create pipelines across the country in line with the principles behind the Energy East, Northern Gateway projects. Have both projects started within 24 months.
- Expansion of Canadian crude and natural gas exports to Asia and Europe to at least 30% within 5 years.
- A significant reduction in Canadian crude price discounts, ensuring producers receive competitive international rates.
With immediate action, Canada can begin exporting greater volumes to new markets within 36 months, securing our economic and energy future.
Common Questions
- Isn’t this a giveaway to oil and gas companies? No. The energy sector funds essential services in Canada. Securing market access ensures royalties, tax revenues and job creation for Canadians. Construction of pipelines creates billions of dollars of contracts for Canadian and indigenous businesses and thousands of jobs
- Won’t this harm the environment? No. We will adopt data driven risk based assessments focused on unique risks to balance rapid approvals with known and sustainable mitigation practices.
- How can you ensure Indigenous support? By supporting transparent and fulsome consultation and ensuring Indigenous communities are involved at the beginning. This will drive clarity of decision-making, equitable benefits, whilst respecting rights and title throughout the process.
- Why not wait for U.S. policy changes? Because waiting leaves us vulnerable. Energy independence is national security. Our energy security is at risk and our non-US trading partners want and need us to take action.
- Can this actually be done quickly? Yes. History shows that emergency powers can deliver vital infrastructure in record time. In addition, the environmental assessments of both Northern Gateway and Energy East were largely completed and therefore provide an opportunity to further accelerate approvals.
Conclusion
Canada stands at a defining moment. Either we act decisively to secure our energy future, or we remain at the mercy of foreign decisions that could leave our economy crippled for a generation. Treating this as a national energy emergency will allow us to break free from regulatory stagnation, diversify our markets, and unleash Canadian energy prosperity. This is not just about oil and gas, it is about economic security, job creation, and the long-term strength of our nation.
