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Canadian Energy Companies Look South For Growth

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From EnergyNow.ca

By Heather Exner-Pirot

Enbridge’s announcement in September that it was acquiring three U.S.-based utilities for USD$14 billion saw Canada’s largest energy company also become North America’s largest gas utility. The deal is significant not only on its own merits, but as part of a bigger trend: Canadian energy companies that are looking for growth prospects are finding them south of the border.

The trend is not new. In 2016, Canadian utilities went on an American shopping spree. Fortis acquired ITC for USD$11.3 billion; Ontario-based Algonquin Power & Utilities Corp acquired Missouri-based Empire District Electric Company for USD$2.4 billion; and Nova Scotia-based Emera acquired Florida-based TECO in a USD$10.4 billion deal.

Pipelines were in the mix too, with TC Energy acquiring Columbia Pipeline Group, a gas transmission network, that year for USD$13 billion.

In 2017, Hydro One purchased U.S. power supplier Avista for USD $3.4 billion, and AltaGas took over WGL Holdings (which supplies natural gas to the White House) for USD $4.6 billion. More recently, TriSummit acquired the Alaska gas distribution, transmission, and storage assets of SEMCO Energy for US$800 million in March.

As such, the Enbridge utility megadeal can be seen less as a harbinger and more of a culmination.

What is behind this Canadian appetite for American utilities and pipelines? At one level, it is a response to the inherent limitations of the Canadian utilities sector, which is heavily regulated and often provincially owned. Add in Ottawa’s torrent of climate policies aiming to cut growth in Canadian oil and gas, and pastures look greener elsewhere.

But it also speaks to the confidence the sector’s biggest players have in the long term prospects for natural gas. The Dominion deal adjusts Enbridge’s earnings from a 60-40 mix between crude oil & liquids, and natural gas & renewable energy respectively, to something closer to a 50-50 split. Enbridge, like many energy companies, is betting on natural gas being a bridge fuel in the energy transition rather than being phased out. And whatever fuel mix we use in the future, it will require pipelines and distribution, whether in the form of natural gas, renewable natural gas (RNG), hydrogen or otherwise.

“…it also speaks to the confidence the sector’s biggest players have in the long term prospects for natural gas.”

Two phenomena are worth emphasizing here. The first is that the United States is seen as a jurisdiction for growth; Canada, not so much. Our biggest energy companies are expanding to the south, but the reverse is not true. Enbridge and TC Energy are leading the way, but Cenovus, Cameco, Hydro-Québec and others are also making moves, on top of the long list of utilities above.

This is not just anecdotal. According to the U.S. State Department,1 Canadian foreign direct investment (FDI) in the United States was about 26% higher than their reciprocal FDI in 2022, or USD$528 billion compared to their USD$406 billion. This is part of a broader trend that has been worsening since 2014. In that year, Canadian investment abroad was only about CAD$100 billion more than foreign investment in Canada. By 2022 the imbalance had grown to a whopping CAD$725 billion.2 Canadian companies are generating wealth; they are just generating a smaller proportion of it at home.

The second is that the Canadian and American energy markets are highly interdependent, and growing more so. In fact, 2022 saw record energy trade between our two countries, reaching USD$190 billion, almost triple what it was in the throes of the COVID-19 pandemic, and beating the last high water mark of USD$178 billion in 2008. From natural gas and liquids pipelines to refineries and electricity grids, fundamentally we have a single North American energy system.

As such, we should be developing and coordinating energy and climate policy much more closely. It is inefficient, not to mention painful for the energy sector, when Canada and the United States – and many provinces and states on top of that – propose substantially different standards, goals, and regulations.  Energy is an area that needs closer policy collaboration and alignment between our two nations in order to achieve sustainability, reliability and affordability of supply.

This need is manifesting itself in a growing Canadian presence in the US capital. In the past year or so, TC Energy has established a policy team in Washington DC, and Cenovus and the Business Council of Canada have opened up offices there (as has my own think tank, the Macdonald-Laurier Institute). As entreaties to Ottawa fall on deaf ears, businesses are looking for reception elsewhere.

The Canadian energy sector is betting big on natural gas, be it through retail, pipeline transportation or LNG exports. Where possible, it’s betting on Canada too. But the United States and other markets are where growth is on offer.

We should all celebrate the success of Canadian companies abroad. But we should be creating a policy and business environment that allows them to grow in our own back yard too.

Heather Exner-Pirot is the Director of Energy, Natural Resources and Environment at the Macdonald-Laurier Institute.

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Some Of The Wackiest Things Featured In Rand Paul’s New Report Alleging $1,639,135,969,608 In Gov’t Waste

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From the Daily Caller News Foundation

By Ireland Owens

Republican Kentucky Sen. Rand Paul released the latest edition of his annual “Festivus” report Tuesday detailing over $1 trillion in alleged wasteful spending in the U.S. government throughout 2025.

The newly released report found an estimated $1,639,135,969,608 total in government waste over the past yearPaul, a prominent fiscal hawk who serves as the chairman of the Senate Homeland Security and Governmental Affairs Committee, said in a statement that “no matter how much taxpayer money Washington burns through, politicians can’t help but demand more.”

“Fiscal responsibility may not be the most crowded road, but it’s one I’ve walked year after year — and this holiday season will be no different,” Paul continued. “So, before we get to the Feats of Strength, it’s time for my Airing of (Spending) Grievances.”

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The 2025 “Festivus” report highlighted a spate of instances of wasteful spending from the federal government, including the Department of Health and Human Services (HHS) spent $1.5 million on an “innovative multilevel strategy” to reduce drug use in “Latinx” communities through celebrity influencer campaigns, and also dished out $1.9 million on a “hybrid mobile phone family intervention” aiming to reduce childhood obesity among Latino families living in Los Angeles County.

The report also mentions that HHS spent more than $40 million on influencers to promote getting vaccinated against COVID-19 for racial and ethnic minority groups.

The State Department doled out $244,252 to Stand for Peace in Islamabad to produce a television cartoon series that teaches children in Pakistan how to combat climate change and also spent $1.5 million to promote American films, television shows and video games abroad, according to the report.

The Department of Veterans Affairs (VA) spent more than $1,079,360 teaching teenage ferrets to binge drink alcohol this year, according to Paul’s report.

The report found that the National Science Foundation (NSF) shelled out $497,200 on a “Video Game Challenge” for kids. The NSF and other federal agencies also paid $14,643,280 to make monkeys play a video game in the style of the “Price Is Right,” the report states.

Paul’s 2024 “Festivus” report similarly featured several instances of wasteful federal government spending, such as a Las Vegas pickleball complex and a cabaret show on ice.

The Trump administration has been attempting to uproot wasteful government spending and reduce the federal workforce this year. The administration’s cuts have shrunk the federal workforce to the smallest level in more than a decade, according to recent economic data.

Festivus is a humorous holiday observed annually on Dec. 23, dating back to a popular 1997 episode of the sitcom “Seinfeld.” Observance of the holiday notably includes an “airing of grievances,” per the “Seinfeld” episode of its origin.

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Alberta

A Christmas wish list for health-care reform

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From the Fraser Institute

By Nadeem Esmail and Mackenzie Moir

It’s an exciting time in Canadian health-care policy. But even the slew of new reforms in Alberta only go part of the way to using all the policy tools employed by high performing universal health-care systems.

For 2026, for the sake of Canadian patients, let’s hope Alberta stays the path on changes to how hospitals are paid and allowing some private purchases of health care, and that other provinces start to catch up.

While Alberta’s new reforms were welcome news this year, it’s clear Canada’s health-care system continued to struggle. Canadians were reminded by our annual comparison of health care systems that they pay for one of the developed world’s most expensive universal health-care systems, yet have some of the fewest physicians and hospital beds, while waiting in some of the longest queues.

And speaking of queues, wait times across Canada for non-emergency care reached the second-highest level ever measured at 28.6 weeks from general practitioner referral to actual treatment. That’s more than triple the wait of the early 1990s despite decades of government promises and spending commitments. Other work found that at least 23,746 patients died while waiting for care, and nearly 1.3 million Canadians left our overcrowded emergency rooms without being treated.

At least one province has shown a genuine willingness to do something about these problems.

The Smith government in Alberta announced early in the year that it would move towards paying hospitals per-patient treated as opposed to a fixed annual budget, a policy approach that Quebec has been working on for years. Albertans will also soon be able purchase, at least in a limited way, some diagnostic and surgical services for themselves, which is again already possible in Quebec. Alberta has also gone a step further by allowing physicians to work in both public and private settings.

While controversial in Canada, these approaches simply mirror what is being done in all of the developed world’s top-performing universal health-care systems. Australia, the Netherlands, Germany and Switzerland all pay their hospitals per patient treated, and allow patients the opportunity to purchase care privately if they wish. They all also have better and faster universally accessible health care than Canada’s provinces provide, while spending a little more (Switzerland) or less (Australia, Germany, the Netherlands) than we do.

While these reforms are clearly a step in the right direction, there’s more to be done.

Even if we include Alberta’s reforms, these countries still do some very important things differently.

Critically, all of these countries expect patients to pay a small amount for their universally accessible services. The reasoning is straightforward: we all spend our own money more carefully than we spend someone else’s, and patients will make more informed decisions about when and where it’s best to access the health-care system when they have to pay a little out of pocket.

The evidence around this policy is clear—with appropriate safeguards to protect the very ill and exemptions for lower-income and other vulnerable populations, the demand for outpatient healthcare services falls, reducing delays and freeing up resources for others.

Charging patients even small amounts for care would of course violate the Canada Health Act, but it would also emulate the approach of 100 per cent of the developed world’s top-performing health-care systems. In this case, violating outdated federal policy means better universal health care for Canadians.

These top-performing countries also see the private sector and innovative entrepreneurs as partners in delivering universal health care. A relationship that is far different from the limited individual contracts some provinces have with private clinics and surgical centres to provide care in Canada. In these other countries, even full-service hospitals are operated by private providers. Importantly, partnering with innovative private providers, even hospitals, to deliver universal health care does not violate the Canada Health Act.

So, while Alberta has made strides this past year moving towards the well-established higher performance policy approach followed elsewhere, the Smith government remains at least a couple steps short of truly adopting a more Australian or European approach for health care. And other provinces have yet to even get to where Alberta will soon be.

Let’s hope in 2026 that Alberta keeps moving towards a truly world class universal health-care experience for patients, and that the other provinces catch up.

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