Canada is pursuing its energy ambitions in Texas – can the oil and gas industry be convinced?
This week in Texas for a global energy conference, the federal natural resources minister is declaring that “Canada is back” and ready to boost its energy sector and increase exports.
Tim Hodgson’s message comes as the world faces an energy crisis caused by the US-Israel war against Iran, raising fears of rising inflation and a possible global recession.
Although 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 substantial action before they are convinced the federal government is serious — both about becoming one. energy superpower and changing the country’s reputation as being reluctant to expand energy supplies and exports, especially oil and natural gas.
In particular, they point to previous failed projects, including oil pipelines and LNG export facilities, that Hodgson was trying to counter with his message.
“We know that our allies desperately need our energy and they desperately need our critical minerals. This is a matter of national security,” Hodgson said in an interview with CBC News in Houston.
Canadian politicians and business leaders are promoting Canadian energy in Texas. This includes oil and gas, nuclear energy and critical minerals. They are in Houston for the annual CERAWeek energy summit.
More federal, provincial unity: Minister
He said the crowd at the energy conference and the level of interest in Canada is much larger than in previous years. In Texas, he was joined by provincial politicians, including the conservative prime ministers of Newfoundland and Labrador, Nova Scotia and Alberta.
In previous years, provincial and federal politicians often attended CERAWeek separately, and Hodgson said the conference audience was struck by the show of unity at both levels of government attending together.
“This is an opportunity,” he said. “And I think 2026 will be when we take advantage of that opportunity.”
Within Canada, the federal government’s energy effort has received a mixed response. Last summer, federal Liberals passed legislation to rapidly advance nation-building projects criticism of opponents How environmental review and indigenous consultation can be weakened in favor of industrial development.
The federal government has introduced a series of other changes, including a reduction in environmental policies such as the oilpatch emissions cap and has signed a memorandum of understanding with Alberta that includes support for a potential new oil export pipeline off the BC coast. However, the Premier of B.C. has continued to reject the idea of such a pipelineInstead it suggested the federal government invest in a refinery.
Energy officials say progress is being made
On stage at CERAWeek on Tuesday, Shell’s chief executive highlighted the growth opportunity in Canada due to the low cost of natural gas and changes in government support for the industry.
Shell has the largest ownership stake in LNG Canada, which began exporting natural gas to B.C. last summer. A consortium of companies is considering whether to give the green light to the expansion.
“The foundation of that project remains very strong, which is Canada’s abundant gas supply, a government that supports major investment opportunities across the LNG value chain and 10-day sailing times to Asia, which are certainly more valuable today than ever before,” said Shell CEO Vel Savan.
The policy changes Ottawa has made will take time to translate into a faster permitting process, TC Energy Chief Executive Francois Poirier said in an interview with CBC News in Houston.
“In short, this government understands this,” he said. “From an execution standpoint, I would say we’re not there yet, but we’re making progress.”
Ottawa faces global competition
The federal government wants 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 US.
But if Ottawa wants to attract investment in the energy sector, it will have to compete with jurisdictions around the world, including the U.S.
Enbridge executive Colin Gruening said it typically takes a few years in many countries for regulators to evaluate a major energy project, and in Canada they have taken much longer in the past.
Regulators in the US are able to approve projects within six months, he said, as US President Donald Trump’s administration is moving with “agility” to develop its energy sector.
The federal government has chosen several energy projects to refer to the Calgary-based Major Projects Office in an effort to accelerate their development, including LNG projects on the west coast.
“In Canada, we need better policy, we also need better and increased 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,” Gruening said in an interview with CBC News in Houston.
“Canada has a big role to play in this, and I’m excited to hear the minister excited about that because the opportunity is real and it’s within our reach.”
The annual energy summit CERAWeek began in Houston on Monday. It attracts people from the energy world as well as Canadian politicians and business leaders. CBC News business reporter Kyle Bax is there and has an update from day one.
Kevin Crosart, a former oil drilling executive, now splits his time between Calgary and Houston as chief executive of Avatar Innovation, a clean energy accelerator and training initiative.
He says he hopes the federal government’s actions will help the energy sector grow, as the world is “screaming” for Canadian oil.
“We need to figure out a way to prove to the rest of the world that if we are a sustainable energy superpower, now is the time to do something,” he said.
