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Energy

Canada Cannot Become an Energy Superpower With its Regulatory Impediments

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10 minute read

From Energy Now

By Yogi Schulz


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Prime Minister Carney wants Canada to become an energy superpower. It’s a worthy goal because Canada has rich, undeveloped energy resources. Many Canadians happily endorse his goal because it achieves these benefits:

  • Economic growth and prosperity for Canadians.
  • Reduce the adverse consequences of American tariffs.
  • Additional tax revenue that reduces the mountain of Canadian public debt.
  • Improved energy security and reduced cost for Canadians in Eastern Canada.
  • Improved energy security for Canada’s international energy customers.
  • Alternative energy supply options for NATO allies to replace Russian energy.
  • Greenhouse gas (GHG) reductions that occur when Canadian high ESG energy replaces other energy sources.

However, Canada can achieve these benefits only by overcoming multiple regulatory impediments, including those described below.

Interprovincial trade barriers

Interprovincial trade barriers impose costs on all industries. Consumers, not companies, bear these costs. A Macdonald-Laurier Institute study estimated that eliminating interprovincial trade barriers could boost Canada’s economy by between 4.4 and 7.9 percent over the long term or between $110 and $200 billion per year. Examples of interprovincial trade barriers that affect the oil and gas industry include:

  • Pools that cross provincial boundaries: Producers must build two higher-cost processing facilities, one on each side of the border.
  • Gathering systems that cross provincial boundaries: Producers must obtain a federal pipeline permit, which requires a multi-year approval process, to build a pipeline that crosses a provincial border.
  • Many minor technical differences: Provinces set their own rules, standards, and certifications for topics such as vehicle weight, length, and safety protocols. These differences increase producer operating costs.
  • Professional licensing: Individuals, such as those in skilled trades, must undergo a lengthy, costly process to obtain a license to work in another province, even if they are already certified elsewhere.
  • Administrative hurdles: Producers operating in multiple provinces face a complex web of permit, license, and reporting requirements that vary from one province to the next.
  • Geographical barriers: The dimensional limitations of tunnels in the Rocky Mountains create a shipping barrier for producers, adding costs when importing large facility components.

For Canada to achieve energy superpower status, reducing interprovincial trade barriers will be necessary to enhance its competitiveness. The Canadian Free Trade Agreement (CFTA) and the Free Trade and Labour Mobility in Canada Act are encouraging federal initiatives to reduce interprovincial trade barriers. The outrageous Trump tariffs have also provided some provinces with a new incentive to lower or eliminate some of their barriers. However, the “mutual recognition” approach may be more symbolic than substantive.

Provincial regulatory incompatibilities

Oil and natural gas producers face slightly different regulations in every province and territory. These incompatibilities incur avoidable operational costs and erode Canada’s competitiveness in the global investment capital market.

Energy industry regulators operate in every province and territory where oil and natural gas are produced. These regulators have independently produced large volumes of regulations that are similar but far from identical. Most of these regulations are derived from those first written in Alberta and various US jurisdictions. Alberta created the first Canadian energy industry regulator because most of the resources are located within its borders.

So far, energy industry regulators have only harmonized the following:

  • Canadian Standards Association (CSA) Z662 Oil and Gas Pipeline Systems. British Columbia, Alberta and Saskatchewan have adopted this standard.
  • Directive 017 – Measurement Requirements for Oil and Gas Operations. Alberta and Saskatchewan have adopted this directive.

Unfortunately, only these two documents, among many dozens, have been harmonized. Parochial thinking appears to be a significant impediment to more harmonization. For example:

  • Some Canadian regulators participate in the Western Regulators Forum (WRF). However, the WRF has yet to harmonize any regulations.
  • Over two decades ago, the Alberta Department of Energy and Minerals sponsored the development of Petrinex with a vision of energy industry-government data management cooperation across multiple provinces. However, the vision has not been realized because the provinces built individual, incompatible systems to protect their turf.

“Producers write more government submissions than technical papers – ten times more. Submissions consume significant effort from technical professionals and include specific oil and gas technical information such as fracking schemes, SAGD operations or facility modifications,” says Granger Low, of Regaware Systems Ltd. “When producers can easily search previous submissions using the artificial intelligence of AppIntel AI, they take advantage of Alberta’s uniquely remarkable oil and gas technical advances, and avoid the delays related to over-regulation and resubmission.”

For Canada to achieve energy superpower status, harmonizing more provincial and territorial oil and natural gas industry regulations will be required to improve its competitiveness.

Provincial regulatory issues

Dealing with regulations is a cost that all oil and natural gas producers bear. Regulations are desirable and necessary to a point. Issues where the energy industry regulators could improve performance include:

  • Reducing and simplifying the enormous number of directives. The issue is that the directives contain extensive related best practices that, while valuable, become indistinguishable from regulatory requirements.
  • Reducing and simplifying the permit application processes for wells, facilities and pipelines. How the current complexity helps regulators fulfill their mandate is unclear.
  • Simplifying reporting and compliance assessment would reduce administrative costs for both producers and regulators.
  • Eliminating the APMC in Alberta would reduce producers’ administrative costs and increase Crown royalty revenue. This article describes the details: It’s Time to Retire the APMC – The APMC Mandate Has Expired, Its Cost is Now Avoidable.
  • Failing to address data quality issues for wells, digital well logs, and cores undermines one of Alberta’s competitive advantages.

For Canada to achieve energy superpower status, reducing the cost of regulatory applications and compliance is a component of improving its competitiveness.

Taxation disparities

Oil and natural gas producers encounter taxation disparities across provinces. The following disparities affect geographic investment decisions:

  • Crown Royalty and Freehold Production Tax calculations and related settlement processes vary considerably by province and type of production.
  • Corporate income tax rates and reporting vary by province.
  • The combined GST and PST/HST rate varies from 5% in Alberta to 15% in some other provinces.
  • Oil and natural gas facility property tax rates and reporting vary by province.

Simplifying these taxation disparities would reduce administrative costs for both producers and the Crown. The combination of taxes and fees that producers pay in Canada is enough to cause some to invest in more profitable jurisdictions.

For Canada to achieve energy superpower status, reducing and harmonizing taxation disparities is a prerequisite to encourage more investment in production.

Additional costs that every producer accepts

Overcoming impediments is particularly important to Canadian competitiveness because the Canadian oil and gas industry incurs higher operating costs than the industry does in most other jurisdictions. The higher cost categories include:

  • Wages and benefits.
  • Health, safety and environmental standards.
  • Abandonment standards.
  • Disclosure of intellectual property in publicly-accessible permit application documents.
  • Lower staff productivity and added heating costs due to lower winter temperatures.

No one is suggesting lowering these Canadian standards and expectations. However, the associated costs increase the urgency of reducing other regulatory impediments to maintain Canada’s competitiveness.

Conclusions

Canada has the resources to become an energy superpower and realize the immense economic, strategic, and environmental benefits that are available. Policymakers can contribute by harmonizing regulations and removing interprovincial trade barriers to ensure investment in Canadian energy is competitive on world financial markets.


Yogi Schulz has over 40 years of experience in information technology in various industries. He writes for Engineering.comEnergyNow.caEnergyNow.com and other trade publications. Yogi works extensively in the petroleum industry to select and implement financial, production revenue accounting, land & contracts, and geotechnical systems. He manages projects that arise from changes in business requirements, the need to leverage technology opportunities, and mergers. His specialties include IT strategy, web strategy, and systems project management.

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Energy

The Trickster Politics of the Tanker Ban are Hiding a Much Bigger Reckoning for B.C.

Published on

From Energy Now

By Stewart Muir

For years, a conservation NGO supported by major foreign foundations has taken on the guise of Indigenous governance authority on British Columbia’s north coast. Meanwhile, rights-holding First Nations with an economic agenda are reshaping the region, yet their equal weight is overlooked. A clash of values has resulted.

For more than a decade, British Columbians have been told — mostly by well-meaning journalists and various pressure groups — that an organization called Coastal First Nations speaks with authority for the entire coast. The name sounds official. It sounds governmental. It sounds like a coalition of Indigenous governments with jurisdiction over marine waters.

It isn’t any of those things.

Coastal First Nations (CFN) is a non-governmental organization, incorporated under the BC Societies Act as The Great Bear Initiative Society. It doesn’t hold Indigenous rights or title. It has no legislated role to provide benefits or services to First Nations members. It has no jurisdiction over shipping, marine safety, forestry, fisheries, energy development, or environmental regulation. Yet its statements are frequently treated as if they carry the weight of sovereign authority.

It’s time to say out loud what many leaders — municipal, Indigenous, and industry — already know: CFN is an advocacy group, not a government. Case in point, a recent news story with the following lede: “B.C.’s Coastal First Nations say they will use ‘every tool in their toolbox’ to keep oil tankers out of the northern coastal waters.” A spokesperson claimed to represent “the Rights and Title Holders of the Central and North Coast and Haida Gwaii,” yet notwithstanding the rights of any individual First Nation, CFN does not hold any formal authority.

Here’s why this matters. The truth is, Alberta has already struck its grand bargain with the rest of Canada. Now it’s time to confront the uncomfortable truth that the country is still one bargain short of a functioning national deal.

In 2026, with Canadians increasingly alert to who is shaping national conversations, there is a reasonable expectation that debates affecting our economic future should be led and conducted by Canadians — not by foreign foundations, not by out-of-country campaign strategists, and not by NGOs built to advance someone else’s policy objectives.

Where the confusion came from

CFN’s rise in public visibility traces back to the “Great Bear Rainforest” era, when U.S. philanthropic foundations poured large sums of money into environmental campaigns in British Columbia. A Senate of Canada committee document notes that the Gordon & Betty Moore Foundation alone provided approximately $25 million directly to Coastal First Nations, delivered as twenty-five nearly $1 million installments.

CFN also played a central role in the Great Bear Rainforest negotiations, which were financed by a coalition of foreign philanthropies including the Packard Foundation, Hewlett Foundation, Wilburforce Foundation, Rockefeller Brothers Fund, Nature Conservancy/Nature United, and Tides Canada Foundation. These foundations collectively contributed tens of millions of dollars to the “conservation financing” model that anchored CFN’s operating environment.

This history isn’t speculative. It’s well documented in foundation reports, Canadian Parliamentary evidence, and the publicly disclosed financial architecture behind the Great Bear Rainforest. For a generation, well-funded U.S. environmental campaigns have worked to make Canadians afraid of their own shadow by seeding doubt, stoking paralysis, and teaching a resource nation to second-guess the very wealth that built it.

Between 2010 and 2018, an independent forensic accounting review by Deloitte Forensic (backed by the Alberta government) found that foreign foundations provided roughly $788.1 million in grants for Canadian environmental initiatives. The largest single category — by a wide margin — was marine-based initiatives, totalling $297.2 million. In Deloitte’s categorization, “marine-based” overwhelmingly refers to coastal campaigns: Great Bear Rainforest–related advocacy, anti-tanker/shipping activism, marine-use regulation campaigns, marine ecological programs, and other coastal political work.

Article content
Screenshot of disclosed donations by a Palo Alto, CA foundation to CFN

Land-based initiatives were the second-largest category ($191 million), followed by wildlife preservation ($173 million).

The forensic review also showed that of the $427.2 million that physically entered Canada, 82% — approximately $350.3 million — was spent in British Columbia, with the dominant share directed specifically toward coastal and marine initiatives.

Taken together, these findings confirm that foreign-funded environmental activity in Canada has been geographically concentrated in British Columbia and thematically concentrated on the coast – exactly the domain where CFN has been positioned as a public-facing authority.

The real authority lies with the nations themselves

If British Columbians want to understand who truly governs the coast, they should look to the Indigenous governments that hold rights, title, citizens, and accountability — not NGOs that comment from the sidelines. That means not overlooking:

  • Haisla Nation, leaders of Cedar LNG
  • Nisga’a Nation, co-developers of Ksi Lisims LNG
  • Gitxaala Nation, asserting legal and territorial authority
  • Kitselas and Kitsumkalum, both shaping regional development

These governments are also coastal First Nations. They negotiate major economic partnerships, steward lands and waters, and make decisions grounded in their own legal orders. Moreover, representation is the key measure of accountability in a democracy: First Nations governing councils are elected by their members. The CFN is not elected. The nations are accountable to their own people — not to U.S. philanthropies or to the strategic objectives of foreign-backed environmental campaigns.

The Haisla Nation once belonged to CFN, but quit in protest in 2012 when the body opposed LNG. The Haisla council went on to fully embrace economic development via liquefied natural gas and own the upcoming Cedar LNG project.

Meanwhile, the central and northern coastal regions where CFN has opposed numerous economic opportunities continue to suffer the worst child poverty in British Columbia.

In the delicate politics of the region’s First Nations alliances, relationships are constantly in motion and governed by inviolable traditions of mutual respect. From these threads, it has to be said that the CFN’s strategy of weaving the appearance of unanimity is truly a fabrication. In point of fact, CFN represents just one half of the story. My data source tells the story, by drawing together the latest available economic and demographic information for 216 British Columbia First Nations:

  • Status Indian residents of CFN communities on the north coast number 5,484, with a total membership near and far of 20,447.
  • The pro-development group noted earlier numbers 5,505 living local out of a total membership of 16,830.

In other words, virtually equal. Hence it’s obvious that any media report citing CFN as the singular authority for local First Nations interests is a misleading one. CFN speaks for only a slice of the North Coast, not the whole, and the numbers make that impossible to ignore.

When a CFN motion opposing responsible resource development was adopted by the Assembly of First Nations (see Dec. 2 news), it was further evidence that the deck is stacked against First Nations that are accountable and position themselves as having broad responsibilities, including but not limited to raising the standard of living of their members.

The future belongs to the nations

The politics of LNG on the North Coast can’t be grasped without staring directly at the tanker ban — not as scripture, but as the political curiosity it has become. Anyone who knows these waters understands it’s mostly theatre: it doesn’t question letting Alaska oil tanker ships transit our exclusive economic zone when we cannot, and it doesn’t touch the real risks coastal people actually worry about. Yet waving it away is naïve. The ban behaves like a trickster spirit in our public life — capricious, emotionally loaded, and capable of turning a routine policy debate into a cultural conflagration with barely a flick of its tail.

This is why Coastal First Nations retain such gravitational pull. For years, the ban has served as the moral architecture of their Great Bear Sea campaign. CFN represents a long-game strategy — build legitimacy, occupy the moral high ground, and shape the destiny of a nation by holding the symbolic centre. Their concerns seem genuine and rooted in lived stewardship – yet were shaped by Madison Avenue minds hired by American philanthropists to affect our politics. But a near equal number of coastal nation residents unified by a different outlook also have skin in the game. They are charting futures grounded in prosperity, environmental care, and sovereignty on their own terms, and their authority is the real thing — born of title, law, and accountability to their own people.

And here is the irony worth heeding: the tanker ban’s pageantry masks a solution. It is dragging into daylight a conversation the province has avoided for decades — a conversation that will soon prove inevitable as court rulings unsettle the very foundation of property rights in British Columbia. This is the hinge that the moment turns on.

Canada cannot resolve its growing national contradictions without moving its energy to global markets. Alberta has already made its grand bargain with the country. Now British Columbia must craft its own — harnessing the prosperity of energy development to discharge political debts and finally settle the title question that has defined the province’s modern era.

Stewart Muir

President & CEO @ Resource Works | Co-founder of Tersa Earth | Host of the Power Struggle energy podcast | Founder of the Indigenous Partnerships Success Showcase | Expert presenter with Unleashing Canadian Prosperity
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Economy

What the Data Shows About the New Canada-Alberta Pipeline Opportunity

Published on

From Energy Now

By Canada Powered by Women

Canada has entered a new period of energy cooperation, marking one of the biggest shifts in federal–provincial alignment on energy priorities in years.


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Last week as Prime Minister Mark Carney and Alberta Premier Danielle Smith signed a memorandum of understanding (MOU) that outlines how both governments will approach a potential pipeline to British Columbia’s coast.

The agreement, which has been described as a “new starting point” after years of tension, lays the groundwork for a privately financed pipeline while also linking this commitment to a broader set of infrastructure priorities across oil and gas, LNG, renewables, critical minerals and electricity transmission.

It also sets out how a privately financed project, moving roughly 300,000 to 400,000 barrels of oil to global markets each day, will be reviewed.

Now that the announcement is behind us, attention has turned to how (or if) a pipeline is going to get built.

Alberta has set out its ambitionsBritish Columbia has its conditions, and the federal government has its own expectations. Together, these positions are shaping what some are calling a “grand bargain” which will be made up of trade-offs.

Trade-offs are not a new concept for the engaged women that Canada Powered by Women (CPW) represents, as they’ve been showing up in our research for several years now. And anyone who reads us also knows we like to look at what the data says.

According to new polling from the Angus Reid Institute, a clear majority of Canadians support a pipeline, with national backing above 60 per cent. And there’s strong support for the pipeline among those in B.C. This aligns with other emerging data points that show Canadians are looking for practical solutions that strengthen affordability and long-term reliability.

By the numbers:

• 60 per cent of Canadians support the pipeline concept, while 25 per cent oppose it.
• 53 per cent of people support in British Columbia, compared to 37 percent opposed.
• 74 per cent of people in Alberta and Saskatchewan support the pipeline.

Our research shows the same trends.

A large majority (85 per cent) of engaged women agree that building pipelines and refining capacity within the country should be prioritized. They favour policies that will progress stability, affordability and long-term economic opportunity.

A key feature of the MOU is the expectation of Indigenous ownership and benefit sharing, which Alberta and B.C. governments identify as essential, and which aligns with public opinion. As of right now, Indigenous groups remain split on support for a pipeline.

The agreement also signals that changes to the federal Oil Tanker Moratorium Act may need to be considered. The moratorium, in place since 2019, is designed to limit large tanker traffic on the North Coast of B.C. because of navigation risks in narrow channels and the need to protect sensitive coastal ecosystems.

Those in favour of the pipeline point to this as a critical barrier to moving Canadian oil to international markets.

Polling from the Angus Reid Institute shows that 47 per cent of Canadians believe the moratorium could be modified or repealed if stronger safety measures are in place. Again, we come back to trade-offs.

The MOU is a starting point and does not replace consultation, environmental review or provincial alignment. These steps are still required before any project can advance. Taken together, the agreement and the data show broad support for strengthening Canada’s energy options.

This will be an issue that engaged women are no doubt going to watch, and the conversation is likely to move from ideas to discussing what trade-offs can be made to bring this opportunity to life.

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