Minister of Energy and Natural Resources Tim Hodgson speaks at the Calgary Chamber of Commerce in Calgary on Friday.Todd Korol/The Globe and Mail
Canada’s new Natural Resources Minister says the country needs more oil and gas infrastructure to open trade opportunities with overseas markets and shore up energy supplies in Eastern Canada.
Tim Hodgson made the remarks at a hotel ballroom in Calgary packed with business and political leaders after a series of meetings with Western Canadian officials. That included Alberta’s Energy Minister Brian Jean and its Affordability and Utilities Minister, Nathan Neudorf, as well as Saskatchewan’s Deputy Premier Jim Reiter.
Prime Minister Mark Carney appointed Mr. Hodgson, his long-time friend and associate, to the key business role as a way to mend fences in Western Canada as he seeks to build up infrastructure to kick-start the economy.
Calling himself a pragmatist and a businessman, Mr. Hodgson took aim at U.S. President Donald Trump’s tariffs and broader trade friction with the country’s largest export market.
“We did not ask for this trade war. But we are going to win it,” he said at the event hosted by the Calgary Chamber of Commerce Friday morning.
“If we’re going to sit across the table from him or anyone else, we need to hold Canada’s best cards. That means being able to sell our products to the world. It means expanding our markets, modernizing our infrastructure, and creating the conditions to compete and win.”
Canada will remain a reliable global supplier of oil and gas for decades to come, Mr. Hodgson said in a nod to fears in the oil patch that the Liberal government of Mr. Carney might double down on some policies of his predecessor, Justin Trudeau.
Industry executives criticized many of those policies as being anti-oil and gas, and have given Mr. Carney’s government a laundry list of ways to attract energy capital and boost energy security, from scrapping a cap on emissions to streamlining project reviews.
“The real challenge is not whether we produce, but whether we can get the best products to market before someone else does,” he said.
“It’s high time to trade more with people who share our values – not just our border.”
Mr. Hodgson took aim at U.S. President Donald Trump’s tariffs and broader trade friction with the country’s largest export market at the event, saying Canada didn't ask for this trade war, but is going to win it.Todd Korol/The Globe and Mail
He pledged to work quickly with the provinces and territories, industry and Indigenous partners to diversify trade, and open and expand new markets for energy, as well as critical minerals and forest products.
Mr. Hodgson, a former Goldman Sachs investment banker who previously sat on the boards of Alberta-based companies, stressed his first public appearance in his role was an initial step in resetting the relationship between the province and Ottawa.
“No more asking, ‘Why build?’ The real question is, ‘How do we get it done?’ That means breaking apart barriers and ripping down red tape,” he said.
He said he would consult with industry to identify and fast-track projects of national interest which matter to the Canadian economy, the environment and the country’s sovereignty.
The government has said permitting decisions will be made within two years via a major federal projects office that will offer a single window for permits.
The goal is to create an environment for the private sector to see potential gains from investments in such projects, he said.
“I’m from the private sector. I’ve sat on boards. I understand when projects go forward people look at the lifetime [return on equity] of the project,” he told the audience. “They have to make an assessment of risk-return in putting capital to work. That’s how the private sector gets stuff done.”
Many attendees from the business and political communities said they were encouraged by Mr. Hodgson’s messaging and impressed that Calgary was his first major stop in his role. However, some stressed that the real test will be their ability to develop major projects with fewer regulatory burdens.
“There is some repair and trust-building that has to happen given the challenges of the last 10 years, I would argue,” Calgary Chamber president Deborah Yedlin told reporters.
“But I think that he’s definitely someone who understands how to get things done, and if you’ve ever been an investment banker you know there are ways to find common ground and to find a solution and to reach an agreement on some contentious challenges.”
Although Mr. Hodgson emphasized the need for more infrastructure, he did not mention pipelines during his speech. But he called on the Pathways Alliance to hasten its plans to build a massive carbon capture project in the oil sands, saying it is critical to demonstrate to Canadians and overseas customers that the industry operates responsibly.
The Pathways Alliance is a consortium of Canada’s six largest oil sands companies, which together have publicly committed to reaching net-zero greenhouse gas emissions from oil sands production by 2050.
“Your federal government has committed to certainty, to support, and to making Canada an energy superpower, but we need a partner who is also willing to make good on their promises to Canadians,” Mr. Hodgson said.