Canadian Energy Centre
Why Canada’s proposed oil and gas emissions cap goes against UNDRIP and the rights of Indigenous people
Indigenous Resource Network executive director John Desjarlais (centre), with Justin Bourque, president of Âsokan Generational Developments, and Shelby Kennedy, community and Indigenous relations advisor with Enbridge. Photo courtesy Indigenous Resource Network
From the Canadian Energy Centre
Q&A with John Desjarlais, executive director of the Indigenous Resource Network
The Indigenous Resource Network (IRN) is pushing back on Canada’s proposed framework to cap emissions from the oil and gas sector.
IRN executive director John Desjarlais says the proposal directly contradicts Canada’s support for the United Nations Declaration on the Rights of Indigenous People (UNDRIP).
He says the plan would cap opportunity for Indigenous communities as more take on ownership positions in major energy projects from oil and gas pipelines to liquefied natural gas terminals and carbon capture and storage projects.
Here’s what Desjarlais told CEC.
CEC: From the perspective of Indigenous communities across Canada who are involved in natural resources development, what’s your take on the federal government’s proposed oil and gas emissions cap?
John Desjarlais: There’s a lot of confidence that it will curtail production as well, and obvious concern that it’s going to mean less opportunity.
We’ve heard from communities that are saying we’re involved already in emissions reduction. There are communities that just want to advance their opportunities in that space. And it’s at a time when there’s probably the greatest appetite for Indigenous involvement, not just in ownership, but advanced business development and procurement. [It could] mean less jobs, less procurement, less ownership opportunity, less investment.
There are concerns that these impacts are not being heavily understood, measured, contemplated or considered in terms of the policy development and implementation.
CEC: How does being involved in oil and gas development benefit Indigenous communities?
JD: There’s a suite of benefits that are coming from increased engagement, and it’s much deeper than just jobs.
Communities are now jumping into revenue generating assets where they’re creating immediate cash flow, which is allowing them to start to self-determine and invest back into their community either through economic development or through infrastructure programming.
The other side to it is just the capacity that comes from being involved as an owner. Indigenous business and community leaders are being exposed to the requirements and the acumen needed to successfully participate in the ownership of decision making. That’s accelerating the development of the acumen and capacity of different indigenous communities at greater rates
CEC: How many communities would you estimate are now participating at this level?
JD: There’s probably upwards directly of at least 100 different communities now. There are double-digit communities that are involved in at least four or five different deals that are directly involved in the ownership and the benefit side, and then there’s cascading involvement of all the surrounding communities through procurement opportunities and employment. It’s growing quite quickly.
CEC: Why do you say the proposed emissions cap contradicts the United Nations Declaration on the Rights of Indigenous People?
It’s a policy that’s created to achieve certain goals. Creating those types of targets without Indigenous oversight – not just input, [but] oversight and ownership – is problematic because it contradicts the UNDRIP action plan in terms of stepping out of the way of affording Indigenous peoples and communities the ability to self-determine; to invest where they want to invest, and to grow how they want to grow.
We hear a lot of community leaders say, ‘we know what’s best for our territories.’ To have policy that limits our ability to make the decisions we want to make in regard to environmental and economic sustainability is a challenge.
CEC: What would you like to see happen?
JD: It’s a little hard to roll back and involve communities in a total redesign, but at least if we saw an understanding that there’s certainly going to be an economic impact. If there’s a production cap aspect to it, there’s going to be an economic impact to those Indigenous communities that have established livelihoods and revenue streams.
There’s the sentiment that if the government truly is advancing this in the direction that they are, then would they consider omission of Indigenous activity so they can continue advancing their economic interests and growth?
Ideally, [there would be] a policy that’s created in line with UNDRIP that works for communities, industries and governments in their goals.
From The Canadian Energy Centre
Five things to watch in Canada’s oil and gas industry in 2026
The coming year could mark a turning point for the expansion of Canada’s oil and gas sector as governments look to harness its resources to drive economic independence and prosperity.
Against a backdrop of steady drilling activity and continued production growth, new major export projects are expected to take significant steps forward.
Here are five key developments to watch.
5. Modest growth in drilling activity
Oil and gas drilling in central Alberta, fall 2025. Photo supplied to the Canadian Energy Centre
Oil and gas drilling in Western Canada is set for modest increases in 2026 amid flat oil price forecasts and softer natural gas prices, according to the Canadian Association of Energy Contractors (CAOEC).
CAOEC projects an average of 213 active drilling rigs, up from 201 in 2025. A total of 5,709 wells are expected to be drilled, an increase of just under three per cent.
This will be accompanied by an average of 458 active service rigs, up from 447 in 2025.
The activity is expected to support 85,000 direct and indirect jobs over the year.
“These aren’t abstract figures; they’re the heartbeat of Canada, the proof that our work isn’t just about extracting resources — it’s about giving Canadians a hopeful future,” said CAOEC CEO Mark Scholz.
4. New investment spurred by Alberta-Canada agreement
Oil sands workers in northern Alberta. Photo courtesy Pathways Alliance
The recent wide-ranging energy agreement between the Alberta and federal governments could unlock new investment in data centres, emissions-reduction technology and oil sands growth in 2026.
The deal is “formidable,” Edmonton-based Capital Power CEO Avik Dey told investors in December.
“It allows us a pathway to building new natural gas-fired power generation in Alberta,” he said.
The company announced it is now negotiating an electricity supply agreement with an unnamed data centre developer in the province.
Policy think tank Clean Prosperity estimates the $130-per-tonne carbon credit price agreed to by Alberta and Ottawa could unlock more than $90 billion in low-carbon investment including carbon capture and storage (CCS).
And as details of Alberta’s proposed pipeline to the northwest coast become clearer, oil sands producers could begin dusting off expansion plans.
According to BMO Capital Markets, producers have already submitted project proposals with combined capacity of 4.4 million barrels per day — enough to more than double current oil sands production.
This total includes both approved projects and proposals that are currently on hold or delayed.
3. Data centres taking flight
Alberta’s goal of attracting $100 billion in data centre investment is expected to advance in 2026 as key policy measures take shape and new projects receive approval.
Interest is strong, with proposed data centres now requesting more than 20 gigawatts of power, according to the Alberta Electric System Operator.
The province passed legislation in 2025 that encourages data centres to bring their own generation to support their connection to the power grid. This is designed to enhance reliability of the grid while accelerating the approval process for data centre projects.
In December, two European companies announced a $1.26 billion plan to build four new AI-ready data centres in Alberta.
Portugal-based Technologies New Energy will supply 80 per cent of the power for the new data centres for Data District Inc., a division of Swiss asset management firm Alcral AG.
“Alberta offers the energy resources, industrial base and investment momentum to support this growth,” TNE said in a statement.
Initial operations are targeted for 2026.
2. Go-ahead for Ksi Lisims LNG
Rendering of the proposed Ksi Lisims LNG project. Image courtesy Ksi Lisims LNG
An Indigenous-led floating LNG terminal on B.C.’s northern coast near Alaska is “not far off” from a final decision to proceed.
That milestone is expected in 2026, spokeswoman Rebecca Scott said in November.
Ksi Lisims (pronounced “s’lisims”) is a partnership between the Nisga’a Nation, a consortium of Canadian natural gas producers called Rockies LNG, and a subsidiary of Houston-based Western LNG.
The 12-million-tonne-per-year project would help significantly expand Canada’s LNG export capacity, which is currently about 14 million tonnes per year.
In November, Ksi Lisims was referred for fast-tracking by Canada’s new Major Projects Office (MPO).
Start-up is targeted for 2029.
1. Advancing a new northwest coast oil pipeline
Pipe in storage for the Trans Mountain expansion near Hope, B.C. in August 2019. CP Images photo
Alberta’s application to the MPO for a new oil pipeline to the northwest coast is expected by July 1, 2026.
It’s a project that’s been designated in the national interest as a key measure to establish Canada as an energy superpower.
The pipeline application is expected to target a deep-water port for oil exports to Asian markets, while creating opportunities for Indigenous ownership.
If a proposal is approved, the federal government has committed to enabling bitumen exports, including an “appropriate adjustment” of the tanker moratorium on B.C.’s north coast if necessary.
The governments have also agreed to a maximum two-year timeframe for permitting and approvals.
From the Canadian Energy Centre
Canada’s energy landscape changed significantly in 2025, with mounting U.S. economic pressures reinforcing the central role oil and gas can play in safeguarding the country’s independence.
Here are the Canadian Energy Centre’s top five most-viewed stories of the year.
5. Alberta’s massive oil and gas reserves keep growing – here’s why
The Northern Lights, aurora borealis, make an appearance over pumpjacks near Cremona, Alta., Thursday, Oct. 10, 2024. CP Images photo
Analysis commissioned this spring by the Alberta Energy Regulator increased the province’s natural gas reserves by more than 400 per cent, bumping Canada into the global top 10.
Even with record production, Alberta’s oil reserves – already fourth in the world – also increased by seven billion barrels.
According to McDaniel & Associates, which conducted the report, these reserves are likely to become increasingly important as global demand continues to rise and there is limited production growth from other sources, including the United States.
4. Canada’s pipeline builders ready to get to work
Photo courtesy Coastal GasLink
Canada could be on the cusp of a “golden age” for building major energy projects, said Kevin O’Donnell, executive director of the Mississauga, Ont.-based Pipe Line Contractors Association of Canada.
That eagerness is shared by the Edmonton-based Progressive Contractors Association of Canada (PCA), which launched a “Let’s Get Building” advocacy campaign urging all Canadian politicians to focus on getting major projects built.
“The sooner these nation-building projects get underway, the sooner Canadians reap the rewards through new trading partnerships, good jobs and a more stable economy,” said PCA chief executive Paul de Jong.
3. New Canadian oil and gas pipelines a $38 billion missed opportunity, says Montreal Economic Institute
Steel pipe in storage for the Trans Mountain Pipeline expansion in 2022. Photo courtesy Trans Mountain Corporation
In March, a report by the Montreal Economic Institute (MEI) underscored the economic opportunity of Canada building new pipeline export capacity.
MEI found that if the proposed Energy East and Gazoduq/GNL Quebec projects had been built, Canada would have been able to export $38 billion worth of oil and gas to non-U.S. destinations in 2024.
“We would be able to have more prosperity for Canada, more revenue for governments because they collect royalties that go to government programs,” said MEI senior policy analyst Gabriel Giguère.
“I believe everybody’s winning with these kinds of infrastructure projects.”
2. Keyera ‘Canadianizes’ natural gas liquids with $5.15 billion acquisition
Keyera Corp.’s natural gas liquids facilities in Fort Saskatchewan, Alta. Photo courtesy Keyera Corp.
In June, Keyera Corp. announced a $5.15 billion deal to acquire the majority of Plains American Pipelines LLP’s Canadian natural gas liquids (NGL) business, creating a cross-Canada NGL corridor that includes a storage hub in Sarnia, Ontario.
The acquisition will connect NGLs from the growing Montney and Duvernay plays in Alberta and B.C. to markets in central Canada and the eastern U.S. seaboard.
“Having a Canadian source for natural gas would be our preference,” said Sarnia mayor Mike Bradley.
“We see Keyera’s acquisition as strengthening our region as an energy hub.”
1. Explained: Why Canadian oil is so important to the United States
Enbridge’s Cheecham Terminal near Fort McMurray, Alberta is a key oil storage hub that moves light and heavy crude along the Enbridge network. Photo courtesy Enbridge
The United States has become the world’s largest oil producer, but its reliance on oil imports from Canada has never been higher.
Many refineries in the United States are specifically designed to process heavy oil, primarily in the U.S. Midwest and U.S. Gulf Coast.
According to the Alberta Petroleum Marketing Commission, the top five U.S. refineries running the most Alberta crude are:
- Marathon Petroleum, Robinson, Illinois (100% Alberta crude)
- Exxon Mobil, Joliet, Illinois (96% Alberta crude)
- CHS Inc., Laurel, Montana (95% Alberta crude)
- Phillips 66, Billings, Montana (92% Alberta crude)
- Citgo, Lemont, Illinois (78% Alberta crude)
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