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In Texas this week for a global energy conference, the federal natural resources minister is proclaiming “Canada is back” and ready to bolster its energy sector and grow exports.
The message by Tim Hodgson comes at a time when the world is confronting an energy crisis caused by the U.S.-Israel war against Iran, which is raising fears of a spike in inflation and a possible global recession.
Though industry executives welcomed Hodgson’s enthusiasm at the CERAWeek conference in Houston and the overall direction of the government under Prime Minister Mark Carney, they still say they want to see considerable action before they’ll be convinced the federal government is serious — both about becoming an energy superpower and changing the country’s reputation as being reluctant to expand energy supply and exports, especially oil and natural gas.
In particular, they point to past failed projects, including oil pipelines and LNG export facilities, something Hodgson was trying to counter with his message.
“We know that our allies desperately need our energy, and they desperately need our critical minerals. It’s a matter of national security,” said Hodgson, in an interview with CBC News in Houston.
Canadian politicians and business leaders are in Texas promoting Canadian energy. That includes oil and gas, nuclear power and critical minerals. They’re in Houston for the annual CERAWeek energy summit.
More federal, provincial unity: minister
He noted that the crowds at the energy conference and the level of interest in Canada are noticeably bigger than in years past. In Texas, he was joined by provincial politicians, including the conservative premiers of Newfoundland and Labrador, Nova Scotia and Alberta.
In previous years, provincial and federal politicians have often attended CERAWeek separately, and Hodgson said audiences at the conference seem to be struck by the display of unity in having both levels of government attend together.
“That’s an opportunity,” he said. “And I think 2026 will be when we take advantage of that opportunity.”
Within Canada, the federal government’s energy push has received a mixed response. Last summer, the federal Liberals passed legislation to fast-track nation-building projects, drawing criticism from opponents about how environmental reviews and Indigenous consultations could be weakened in favor of industrial development.
The federal government has introduced a swath of other changes, including the reduction of environmental policies such as the oilpatch emissions cap and signed a memorandum of understanding with Alberta, which includes support for a possible new oil export pipeline to the B.C. coast. However, B.C.’s premier has continued to reject the idea of such a pipeline, instead suggesting the federal government invest in a refinery.
Energy execs say progress being made
On stage at CERAWeek on Tuesday, the chief executive of Shell highlighted the opportunity for growth in Canada because of the low cost of natural gas and a change in government support for the industry.
Shell has the largest ownership stake in LNG Canada, which began exporting natural gas in B.C. last summer. The consortium of companies is weighing whether to greenlight an expansion.
“The underpinnings of that project continue to be very strong, which is plentiful gas supply in Canada, a government that is supportive now of major investment opportunities in the LNG value chain and a 10-day sailing time to Asia, which is today, of course, valued more than ever,” said Shell CEO Wael Sawan.
The policy changes Ottawa has made will take time to translate into a faster permitting process, said TC Energy chief executive François Poirier, in an interview with CBC News in Houston.
“In short, this government gets it,” he said. “From an execution standpoint, I would say we’re not quite there yet, but we’re making progress.”
Ottawa faces global competitition
The federal government is wanting to expand the energy sector and exports on the West Coast to help boost the economy and diversify in the face of the ongoing trade war with the U.S.
But if Ottawa wants to attract investment in energy sector, it will have to compete with jurisdictions around the world, including the U.S.
For regulators to evaluate a major energy project typically takes a few years in many countries, and in Canada they have taken much longer in the past, said Enbridge executive Colin Gruending.
In the U.S., regulators are able to approve projects within six months, he said, as U.S. President Donald Trump’s administration is moving with “urgency” to grow its energy sector.
The federal government has chosen several energy projects to be referred to the Calgary-based Major Projects Office, in an effort to expedite their development, including LNG projects on the West Coast.
“In Canada, we need improved policy, we also need improved and growing production to fill these pipelines, and then we need pipelines. So I think that’s the order: policy, production and pipelines. And at some point, the conditions will be right,” Gruending said, in an interview with CBC News in Houston.
“There is a bigger role for Canada to play, and I’m encouraged to hear the minister be that excited about it because the opportunity is real and it’s in our hands.”
The annual energy summit CERAWeek kicked off Monday in Houston. It attracts the who’s who of the energy world, as well as Canadian politicians and business leaders. CBC News business reporter Kyle Bakx is there and has an update on the first day.
Kevin Krausert, a former oil drilling executive, now splits his time between Calgary and Houston as the chief executive of Avatar Innovations, a clean energy accelerator and training initiative.
He says he’s hopeful that the federal government’s actions will help grow the energy sector, because the world is “screaming” for Canada’s oil.
“We do need to figure out a way to prove to the rest of the world that if we are a stable energy superpower, it’s time to deliver,” he said.
