Canada’s natural gas is ready to fill the gap as U.S. shale output falters

With American shale production set to decline due to economic pressures, Canada has a unique opportunity to expand its natural gas exports—but a call to action for infrastructure projects like the Sunrise Expansion Program will be key.

Once-plentiful U.S. shale gas, which has long been a cornerstone of North American energy supply, is now facing significant headwinds. Major producers have recently warned of declining production, driven by rising costs, lower investment, and depletion of existing wells. With fewer new wells being drilled, the U.S. shale industry can no longer be counted on to sustain previous production levels, creating a looming gap in North America’s energy market.

With a production plateau long predicted before a downward slope to 2050, the emerging shortfall is positive news for Canada, which is abundant in natural gas resources and well-positioned geographically and economically to step into the breach. Canada already exports approximately 8.6 billion cubic feet of natural gas daily to the U.S., but has the reserves and potential infrastructure capacity to substantially increase this volume.

“As U.S. shale gas enters a period of decline, Canada is poised not just to fill this emerging gap but also to become a global energy leader,” said Stewart Muir, President & CEO of Resource Works.

Projects like LNG Canada, set to begin operation in June 2025, will enable Canada to export gas not just to its traditional U.S. market but also to rapidly growing markets in Asia and Europe. Muir said that Monday’s announcement in Victoria by B.C. Minister of Energy and Climate
Solutions Adrian Dix, committing to increased provincial support for energy infrastructure development, is precisely the proactive step needed to support climate action goals, Indigenous reconciliation and citizen concerns about affordability amid tariff strife.

“Such forward-looking leadership strengthens Canada’s ability to capitalize on our abundant shale gas resources,” he said. “Now is the time for Canadians to voice their support, ensuring we seize this rare opportunity to secure our energy future.”

To fully capitalize on these opportunities, Canada must urgently invest in domestic infrastructure to expand pipeline capacity and accelerate the movement of natural gas to export terminals.

One example of how this is being addressed lies in the pipeline corridor Sunrise expansion program by Westcoast Energy.

Supporting made-in-Canada solutions

The Sunrise Expansion Program by Westcoast Energy exemplifies precisely the type of infrastructure Canada needs. This ambitious project involves constructing approximately 137 kilometres of 42-inch diameter natural gas pipeline between Chetwynd, B.C., and the Canada-U.S. border near Sumas. Enhanced pipeline capacity, new compressor units, and improved energy transmission infrastructure are critical steps towards maximizing Canada’s export potential.

However, successful development hinges on active citizen support and regulatory approval. The Canada Energy Regulator (CER) is currently inviting public comments on the Sunrise Expansion Program, giving Canadians an opportunity to advocate for infrastructure crucial to
national prosperity and energy security.

To lend your support to this critical infrastructure project, visit the CER’s public comment page here: CER Public Comment Link.

As U.S. shale gas production declines, Canada stands at a pivotal moment. With timely action and public support, Canada can leverage its natural gas wealth to become a global energy leader, securing long-term economic and strategic benefits.

Related Topics:#CanadaNaturalGas #ResourceWorks SunriseExpansionProgram USShaleProduction

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Cross-Canada economic benefits of the proposed Northern Gateway Pipeline project

Alberta / 6 hours ago

Albertans need clarity on prime minister’s incoherent energy policy

Canadian Energy Centre

Cross-Canada economic benefits of the proposed Northern Gateway Pipeline project

Published on June 15, 2025

Todayville

From the Canadian Energy Centre

Billions in government revenue and thousands of jobs across provinces

Announced in 2006, the Northern Gateway project would have built twin pipelines between Bruderheim, Alta. and a marine terminal at Kitimat, B.C.

One pipeline would export 525,000 barrels per day of heavy oil from Alberta to tidewater markets. The other would import 193,000 barrels per day of condensate to Alberta to dilute heavy oil for pipeline transportation.

The project would have generated significant economic benefits across Canada.

The following projections are drawn from the report Public Interest Benefits of the Northern Gateway Project (Wright Mansell Research Ltd., July 2012), which was submitted as reply evidence during the regulatory process.

Financial figures have been adjusted to 2025 dollars using the Bank of Canada’s Inflation Calculator, with $1.00 in 2012 equivalent to $1.34 in 2025.

Total Government Revenue by Region

Between 2019 and 2048, a period encompassing both construction and operations, the Northern Gateway project was projected to generate the following total government revenues by region (direct, indirect and induced):

British Columbia

Provincial government revenue: $11.5 billion
Federal government revenue: $8.9 billion
Total: $20.4 billion

Alberta

Provincial government revenue: $49.4 billion
Federal government revenue: $41.5 billion
Total: $90.9 billion

Ontario

Provincial government revenue: $1.7 billion
Federal government revenue: $2.7 billion
Total: $4.4 billion

Quebec

Provincial government revenue: $746 million
Federal government revenue: $541 million
Total: $1.29 billion

Saskatchewan

Provincial government revenue: $6.9 billion
Federal government revenue: $4.4 billion
Total: $11.3 billion

Other

Provincial government revenue: $1.9 billion
Federal government revenue: $1.4 billion
Total: $3.3 billion

Canada

Provincial government revenue: $72.1 billion
Federal government revenue: $59.4 billion
Total: $131.7 billion

Annual Government Revenue by Region

Over the period 2019 and 2048, the Northern Gateway project was projected to generate the following annual government revenues by region (direct, indirect and induced):

British Columbia

Provincial government revenue: $340 million
Federal government revenue: $261 million
Total: $601 million per year

Alberta

Provincial government revenue: $1.5 billion
Federal government revenue: $1.2 billion
Total: $2.7 billion per year

Ontario

Provincial government revenue: $51 million
Federal government revenue: $79 million
Total: $130 million per year

Quebec

Provincial government revenue: $21 million
Federal government revenue: $16 million
Total: $37 million per year

Saskatchewan

Provincial government revenue: $204 million
Federal government revenue: $129 million
Total: $333 million per year

Other

Provincial government revenue: $58 million
Federal government revenue: $40 million
Total: $98 million per year

Canada

Provincial government revenue: $2.1 billion
Federal government revenue: $1.7 billion
Total: $3.8 billion per year

Employment by Region

Over the period 2019 to 2048, the Northern Gateway Pipeline was projected to generate the following direct, indirect and induced full-time equivalent (FTE) jobs by region:

British Columbia

Annual average: 7,736
Total over the period: 224,344

Alberta

Annual average: 11,798
Total over the period: 342,142

Ontario

Annual average: 3,061
Total over the period: 88,769

Quebec

Annual average: 1,003
Total over the period: 29,087

Saskatchewan

Annual average: 2,127
Total over the period: 61,683

Other

Annual average: 953
Total over the period: 27,637

Canada

Annual average: 26,678
Total over the period: 773,662

Alberta

Albertans need clarity on prime minister’s incoherent energy policy

Published on June 15, 2025

Todayville

From the Fraser Institute

By Tegan Hill

The new government under Prime Minister Mark Carney recently delivered its throne speech, which set out the government’s priorities for the coming term. Unfortunately, on energy policy, Albertans are still waiting for clarity.

Prime Minister Carney’s position on energy policy has been confusing, to say the least. On the campaign trail, he promised to keep Trudeau’s arbitrary emissions cap for the oil and gas sector, and Bill C-69 (which opponents call the “no more pipelines act”). Then, two weeks ago, he said his government will “change things at the federal level that need to be changed in order for projects to move forward,” adding he may eventually scrap both the emissions cap and Bill C-69.

His recent cabinet appointments further muddied his government’s position. On one hand, he appointed Tim Hodgson as the new minister of Energy and Natural Resources. Hodgson has called energy “Canada’s superpower” and promised to support oil and pipelines, and fix the mistrust that’s been built up over the past decade between Alberta and Ottawa. His appointment gave hope to some that Carney may have a new approach to revitalize Canada’s oil and gas sector.

On the other hand, he appointed Julie Dabrusin as the new minister of Environment and Climate Change. Dabrusin was the parliamentary secretary to the two previous environment ministers (Jonathan Wilkinson and Steven Guilbeault) who opposed several pipeline developments and were instrumental in introducing the oil and gas emissions cap, among other measures designed to restrict traditional energy development.

To confuse matters further, Guilbeault, who remains in Carney’s cabinet albeit in a diminished role, dismissed the need for additional pipeline infrastructure less than 48 hours after Carney expressed conditional support for new pipelines.

The throne speech was an opportunity to finally provide clarity to Canadians—and specifically Albertans—about the future of Canada’s energy industry. During her first meeting with Prime Minister Carney, Premier Danielle Smith outlined Alberta’s demands, which include scrapping the emissions cap, Bill C-69 and Bill C-48, which bans most oil tankers loading or unloading anywhere on British Columbia’s north coast (Smith also wants Ottawa to support an oil pipeline to B.C.’s coast). But again, the throne speech provided no clarity on any of these items. Instead, it contained vague platitudes including promises to “identify and catalyse projects of national significance” and “enable Canada to become the world’s leading energy superpower in both clean and conventional energy.”

Until the Carney government provides a clear plan to address the roadblocks facing Canada’s energy industry, private investment will remain on the sidelines, or worse, flow to other countries. Put simply, time is up. Albertans—and Canadians—need clarity. No more flip flopping and no more platitudes.