Canada is putting its energy ambitions in Texas – can the oil and gas industry be convinced?
In Texas this week at a global energy conference, the natural resources minister is declaring that “Canada is back” and ready to strengthen its energy sector and increase exports.
Tim Hodgson’s message comes at a time when the world is dealing with an energy crisis caused by the US-Israel war against Iran, which is causing fears of inflation and a possible global collapse.
Although industry leaders welcomed Hodgson’s enthusiasm at the CERAWeek conference in Houston and the direction of the general government under Prime Minister Mark Carney, they still said that they want to see drastic measures before they are convinced that the federal government is important – in terms of having too much power and changing the country’s image as a reluctance to increase the supply of energy and natural exports, especially oil and natural gas.
In particular, they pointed to past failed projects, including oil pipelines and LNG export terminals, something Hodgson was trying to counter with his message.
“We know that our allies are in dire need of our energy, and they are in dire need of our precious minerals. It’s a matter of national security,” said Hodgson, in an interview with CBC News in Houston.
Canadian politicians and Texas business leaders promote Canadian energy. That includes oil and gas, nuclear power and precious minerals. They are in Houston for the annual CERAWeek energy conference.
Federal, union of states: minister
He noted that the crowds at the energy conference and the level of interest in Canada are significantly larger than in previous years. In Texas, he was joined by provincial politicians, including the premiers of Newfoundland and Labrador, Nova Scotia and Alberta.
In past years, state politicians and politicians have often attended CERAWeek separately, and Hodgson said the audience at the conference seemed impressed by the show of unity when both levels of government attended together.
“That’s an opportunity,” he said. “And I think 2026 will be when we take advantage of that opportunity.”
Within Canada, the federal government’s energy sector has received a mixed response. Last summer, the federal Liberals passed legislation to speed up nation-building projects, drawing criticism from opponents about how environmental reviews and Aboriginal consultation could be weakened in favor of industrial development.
The federal government introduced a number of other reforms, including the reduction of environmental policies such as the oilpatch emission cap and signed a cooperation agreement with Alberta, including support for a new oil export pipeline to the BC coast. However, the BC premier continued to reject the idea of such a pipeline, instead suggesting that the federal government invest in the refinery.
Energy officials say progress has been made
On stage at CERAWeek on Tuesday, Shell’s chief executive highlighted the opportunity for growth in Canada due to lower natural gas costs and changes in government support for the industry.
Shell has a majority ownership stake in LNG Canada, which began exporting natural gas to BC last summer. A consortium of companies is expected to light the growth.
“The fundamentals of that project continue to be very strong, which is the abundance of gas available in Canada, the government that now supports the huge investment opportunities in the LNG value chain and the 10 days to Asia, which, of course, today, is more valued than ever,” said Shell CEO Wael Sawan.
The policy changes made by Ottawa will take time to translate into a faster approval process, said TC Energy CEO François Poirier, in an interview with CBC News in Houston.
“In short, this government gets it,” he said. “From an execution standpoint, I’d say we’re not there yet, but we’re making progress.”
Ottawa is facing global competition
The federal government wants to expand the energy sector and exports to the West Coast to help boost the economy and defuse the ongoing trade war with the US.
But if Ottawa wants to attract investment in the energy sector, it will have to compete with authorities around the world, including the US.
For regulators to evaluate a large energy project typically takes several years in most countries, and in Canada they have taken much longer in the past, said Enbridge CEO Colin Gruending.
In the US, regulators are able to approve projects within six months, he said, as the administration of US President Donald Trump moves “urgently” to expand its energy sector.
The federal government has selected several energy projects to be transferred to the Calgary-based Office of Capital Projects, in an effort to speed up their development, including LNG projects on the West Coast.
“In Canada, we need improved policy, and we need improved and growing production to fill these pipelines, and then we need pipelines. So I think that’s the order: policy, production and pipelines. And at some point, the conditions will be right,” said Gruending, in an interview with CBC News in Houston.
“There is a big role to be played by Canada, and I am encouraged to hear the minister is happy about it because the opportunity is there and it is in our hands.
The annual CERAWeek energy conference kicked off Monday in Houston. It attracts the who’s who of the energy world, as well as Canadian politicians and business leaders. CBC News business reporter Kyle Bakx is here and has an update on the first day.
Kevin Krausert, a former oil drilling executive, now splits his time between Calgary and Houston as CEO of Avatar Innovations, a clean energy accelerator and training initiative.
He says he hopes that what the federal government is doing will help grow the energy industry, because the whole world is “crying” for Canadian oil.
“We need to find a way to prove to the world that if we are a stable superpower, it’s time to deliver,” he said.
