Trump’s promises should prompt major rethink of Canadian energy policy

In three weeks, the United States will have a new president. And despite Donald Trump’s pledge to “unleash” the American oil and gas sector by cutting red tape and accelerating permit approvals, the Trudeau government remains committed to constraining Canada’s oil and gas industry. The result? More investment to the U.S. and less to Canada. To prevent Canada from falling further behind the U.S., the government must reverse harmful policies that drive investors away.

Even before Trump’s victory, Canada’s oil and gas sector was less attractive for investment compared to the U.S. According to a 2023 survey of oil and gas investors, 68 per cent of respondents said uncertainty about environmental regulations deters investment in Canada’s oil and gas sector compared to 41 per cent in the U.S. And 54 per cent said Canada’s regulatory duplication and inconsistencies deter investment compared to only 34 per cent for the U.S.

This negative perception reflects years of policy decisions that have consistently undermined Canada’s oil and gas industry. To name a few.

In 2016, just one year after taking office, the Trudeau government cancelled the Northern Gateway pipeline from Alberta to British Columbia’s coast. The $7.9 billion project, previously approved by the Harper government, would have expanded market access and boosted exports to Asia.

In 2017, the TransCanada energy company withdrew its application for the Energy East and Eastern Mainline pipelines from Alberta and Saskatchewan to the east coast, which would have expanded access to European markets. The projects became economically unfeasible after the Trudeau government required the company to account for greenhouse gas emissions from oil production and consumption—not just transportation, a requirement that was never part of prior environmental assessments. (Incidentally, that same year Prime Minister Trudeau vowed to “phase out” fossil fuels in Canada.)

In 2019, the Trudeau government enacted Bill C-69, which introduced subjective criteria—including the “social impact” and “gender implications” of projects—into the evaluation of major energy projects, creating significant uncertainty. That same year, the government passed Bill C-48, which bans large oil tankers from B.C.’s northern coast, further limiting access to Asian markets.

In 2023, the Trudeau government announced plans to cap oil and gas sector emissions at 35 per cent below 2019 levels by 2030—while leaving other sectors in the economy untouched. This will likely force energy producers to limit production. And the government’s new methane regulations and rules, which require fuel producers to reduce emissions, have added to the sector’s costs and regulatory challenges.

Predictably, these policy decisions have taken a toll. Investment in the oil and gas sector plummeted over the last decade, from $84.0 billion in 2014 to $37.2 billion in 2023 (inflation adjusted)—a 56 per cent drop. Less investment means less money to develop new energy projects, infrastructure and technologies, and consequently fewer jobs and less economic opportunity for Canadians across the country, especially in Alberta, which has been a destination for workers seeking high wages and more opportunity.

Now in 2025, Trump wants to attract investment by streamlining processes and cutting costs while Canada drives investment away with restrictive and costly regulations. If Ottawa continues on this path, Canada’s leading industry—and largest source of exports—will lose more ground to the U.S. To restore our competitiveness and attract investment, the federal government must rethink its approach to the energy sector and scrap the harmful policies that will hurt Canadians today and in the future.

Elmira Aliakbari

Director, Natural Resource Studies, Fraser Institute

Julio Mejía

Policy Analyst

Related Topics:#DonaldTrump #ElmiraAliakbari #FraserInstitute #JulioMejía #USEnergyPolicy CanadianEnergyPolicy feature

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Alberta

Alberta is investing up to $50 million into new technologies to help reduce oil sands mine water

Published on June 17, 2025

Government of Alberta

Technology transforming tailings ponds

Alberta’s oil sands produce some of the most responsible energy in the world and have drastically reduced the amount of fresh water used per barrel. Yet, for decades, operators have been forced to store most of the water they use on site, leading to billions of litres now contained largely in tailings ponds.

Alberta is investing $50 million from the industry-funded TIER system to help develop new and improved technologies that make cleaning up oil sands mine water safer and more effective. Led by Emissions Reduction Alberta, the new Tailings Technology Challenge will help speed up work to safely reclaim the water in oil sands tailing ponds and eventually return the land for use by future generations.

“Alberta’s government is taking action by funding technologies that make treating oil sands water faster, effective and affordable. We look forward to seeing the innovative solutions that come out of this funding challenge, and once again demonstrate Alberta’s global reputation for sustainable energy development and environmental stewardship.”

Rebecca Schulz, Minister of Environment and Protected Areas

“Tailings and mine water management remain among the most significant challenges facing Alberta’s energy sector. Through this challenge, we’re demonstrating our commitment to funding solutions that make water treatment and tailings remediation more affordable, scalable and effective.”

Justin Riemer, CEO, Emissions Reduction Alberta

As in other mines, the oil sands processing creates leftover water called tailings that need to be properly managed. Recently, Alberta’s Oil Sands Mine Water Steering Committee brought together industry, academics and Indigenous leaders to identify the best path forward to safely address mine water and reclaim land.

This new funding competition will support both new and improved technologies to help oil sands companies minimize freshwater use, promote responsible ways to manage mine water and reclaim mine sites. Using technology for better on-site treatment will help improve safety, reduce future clean up costs and environmental risks, and speed up the process of safely addressing mine water and restoring sites so they are ready for future use.

“Innovation has always played an instrumental role in the oil sands and continues to be an area of focus. Oil sands companies are collaborating and investing to advance environmental technologies, including many focused on mine water and tailings management. We’re excited to see this initiative, as announced today, seeking to explore technology development in an area that’s important to all Albertans.”

Kendall Dilling, president, Pathways Alliance

Quick facts

All mines produce tailings. In the oil sands, tailings describe a mixture of water, sand, clay and residual bitumen that are the byproduct of the oil extraction process.
From 2013 to 2023, oil sands mine operations reduced the amount of fresh water used per barrel by 28 per cent. Recycled water use increased by 51 per cent over that same period.
The Tailings Technology Challenge is open to oil sands operators and technology providers until Sept. 24.
The Tailings Technology Challenge will invest in scale-up, pilot, demonstration and first-of-kind commercial technologies and solutions to reduce and manage fluid tailings and the treatment of oil sands mine water.
Eligible technologies include both engineered and natural solutions that treat tailings to improve water quality and mine process water.
Successful applicants can receive up to $15 million per project, with a minimum funding request of $1 million.
Oil sands operators are responsible for site management and reclamation, while ongoing research continues to inform and refine best practices to support effective policy and regulatory outcomes.

Related information

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Middle East clash sends oil prices soaring

Published on June 17, 2025

Todayville

This article supplied by Troy Media.

By Rashid Husain Syed

The Israel-Iran conflict just flipped the script on falling oil prices, pushing them up fast, and that spike could hit your wallet at the pump

Oil prices are no longer being driven by supply and demand. The sudden escalation of military conflict between Israel and Iran has shattered market stability, reversing earlier forecasts and injecting dangerous uncertainty into the global energy system.

What just days ago looked like a steady decline in oil prices has turned into a volatile race upward, with threats of extreme price spikes looming.

For Canadians, these shifts are more than numbers on a commodities chart. Oil is a major Canadian export, and price swings affect everything from
provincial revenues, especially in Alberta and Saskatchewan, to what you pay at the pump. A sustained spike in global oil prices could also feed inflation, driving up the cost of living across the country.

Until recently, optimism over easing trade tensions between the U.S. and China had analysts projecting oil could fall below US$50 a barrel this year. Brent crude traded at US$66.82, and West Texas Intermediate (WTI) hovered near US$65, with demand growth sluggish, the slowest since the pandemic.

That outlook changed dramatically when Israeli airstrikes on Iranian targets and Tehran’s counterattack, including hits on Israel’s Haifa refinery, sent shockwaves through global markets. Within hours, Brent crude surged to US$74.23, and WTI climbed to US$72.98, despite later paring back overnight gains of over 13 per cent. The conflict abruptly reversed the market outlook and reintroduced a risk premium amid fears of disruption in the world’s critical oil-producing region.

Amid mounting tensions, attention has turned to the Strait of Hormuz—the narrow waterway between Iran and Oman through which nearly 20 per cent of the world’s oil ows, including supplies that inuence global and
Canadian fuel prices. While Iran has not yet signalled a closure, the possibility
remains, with catastrophic implications for supply and prices if it occurs.

Analysts have adjusted forecasts accordingly. JPMorgan warns oil could hit US$120 to US$130 per barrel in a worst-case scenario involving military conflict and a disruption of shipments through the strait. Goldman Sachs estimates Brent could temporarily spike above US$90 due to a potential loss of 1.75 million barrels per day of Iranian supply over six months, partially offset by increased OPEC+ output. In a note published Friday morning, Goldman Sachs analysts Daan Struyven and his team wrote: “We estimate that Brent jumps to a peak just over US$90 a barrel but declines back to the US$60s in 2026 as Iran supply recovers. Based on our prior analysis, we estimate that oil prices may exceed US$100 a barrel in an extreme tail scenario of an extended disruption.”

Iraq’s foreign minister, Fuad Hussein, has issued a more dire warning: “The Strait of Hormuz might be closed due to the Israel-Iran confrontation, and the world markets could lose millions of barrels of oil per day in supplies. This could result in a price increase of between US$200 and US$300 per barrel.”

During a call with German Foreign Minister Johann Wadephul, Hussein added: “If military operations between Iran and Israel continue, the global market will lose approximately five million barrels per day produced by Iraq and the Gulf states.”

Such a supply shock would worsen inflation, strain economies, and hurt both exporters and importers, including vulnerable countries like Iraq.

Despite some analysts holding to base-case forecasts in the low to mid-US$60s for 2025, that optimism now looks fragile. The oil market is being held hostage by geopolitics, sidelining fundamentals.

What happens next depends on whether the region plunges deeper into conflict or pulls back. But for now, one thing is clear: the calm is over, and oil is once again at the mercy of war.

Toronto-based Rashid Husain Syed is a highly regarded analyst specializing in energy and politics, particularly in the Middle East. In addition to his contributions to local and international newspapers, Rashid frequently lends his expertise as a speaker at global conferences. Organizations such as the Department of Energy in Washington and the International Energy Agency in Paris have sought his insights on global energy matters.

Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.