Oil pumpjacks operating in a farmer’s field near Calgary in November, 2025.Todd Korol/Reuters
Deborah Yedlin is the president and CEO of the Calgary Chamber of Commerce. Lisa Baiton is the president and CEO of the Canadian Association of Petroleum Producers.
As the world grapples with disruptions to trade flows and economic uncertainty, Canada’s options for generating meaningful growth have become a focal point for our country. Leveraging our oil and natural gas resources through a combination of increasing production and access to new markets by building pipeline infrastructure has quickly emerged as the fastest route to expanding our economy.
While economic growth is often linked to jobs and affordability, in the current environment it also extends to economic sovereignty and geopolitical leverage.
In other words, it’s important – and timely.
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The historic signing of a memorandum of understanding between Ottawa and Alberta last November – which came with a commitment to eliminate the emissions cap and the Clean Electricity Regulations – set us on the road to becoming an energy superpower and served as an important signal the federal government sees the sector as a driver of Canada’s economy.
Yet, despite these positive developments, there remain mixed signals.
In particular, there are two areas of concern: the federal methane regulations and the proposal to significantly alter the industrial carbon pricing structure.
The methane regulations released last December place greater restrictions on methane emissions from oil and gas facilities and extends to emissions produced in the normal course of operations, as well as placing limits on venting and flaring. As an incentive, there is an alternative compliance mechanism if the emissions intensity is kept below a prescribed limit.
This all sounds good in theory, because Alberta has five years to comply with that mechanism. Its feasibility, however, hinges on reaching an equivalency agreement with Ottawa, whereby Alberta’s methane regulations are deemed sufficient on their own and are thus accepted by the federal government. If no agreement is reached, the additional cost to industry could reach $14.6-billion, according to the federal government’s own analysis. That’s a problem – not just for industry, but for Canadian prosperity.
On top of that, the issue of carbon pricing and carbon markets needs more clarity.
Right now, carbon pricing doesn’t kick in until an emissions threshold of 100,000 tonnes is reached. What’s being contemplated is that the carbon price would apply emissions over 10,000 tonnes. This change would unduly penalize the small and mid-sized producers.
While there is widespread recognition that carbon markets have significant challenges and need reforming, what’s currently on the table is unlikely to achieve that objective.
The attendant uncertainty is not going to unlock the investment dollars needed to increase production to fill additional pipeline capacity, whether to the West Coast or to the south.
Seemingly absent from the conversation is the need for Canada to move quickly in the current geopolitical environment to respond to what Prime Minister Mark Carney has described as a “rupture” in global co-operation.
Even as Canada will remain a major oil and natural gas supplier for the United States – the largest consumer of oil on the planet – we must continue to diversify our global customer base and secure our economic future.
Fortunately, public opinion has shifted in support of new infrastructure and resource projects. This reflects greater recognition that increasing our oil and natural gas exports shows that Canadians understand the value the industry delivers to the economy and the imperative to diversify our export markets.
But that means ensuring Canada remains competitive as an investment jurisdiction at a time of heightened trade and investment uncertainty around the globe. Capital flows to where it can get the best return, and if the returns on energy investment opportunities are further squeezed because of additional regulation, capital will continue to sit on the sidelines or be deployed elsewhere, undermining our collective opportunity to achieve a prosperous future.
In a changing world, economic strength and diversity are not just measures of success – they are foundations of national resilience. It’s imperative we act accordingly.