Donald Trump’s post-election musings about imposing economy-wide tariffs have reshaped Canadian politics. One could even argue that Prime Minister Justin Trudeau’s resignation was in large part precipitated by a set of political forces that the incoming president’s tariff threats set off. It has also put Canada’s oil and gas sector in the political crosshairs of Ottawa and some of the provinces who want to use it as bargaining leverage.
Yet as we anticipate the details of Trump’s tariffs sometime this week, the awkward truth is this: notwithstanding the Trudeau government’s pattern of harm to the industry, the oil and gas sector can still be a key economic bulwark for the country as a whole if we get rid of the damaging policies that have held it back.
On this critical issue, the country is divided, with Alberta—the home province of Canada’s largest export—having no trust in the federal government. Alberta has refused to sign a joint statement with other premiers and the Trudeau-led Liberals, as it has little reason to trust a federal government and certain provinces that have actively undermined energy infrastructure projects over the past decade. The prime minister is now asking people to get on Team Canada, but those trying to build pipelines have been wearing that jersey for a decade and haven’t had a teammate in Ottawa.
Who can forget Trudeau’s infamous musings about phasing out Canada’s oil and gas sector? The idea that a nation so richly endowed with natural resources would willingly abandon its competitive advantage was laughable then and remains so now.
While Trudeau entertained dreams of a utopian “green transition,” Americans are certainly not losing sleep over potential tariffs on our non-existent “clean energy” exports. Given that energy exports account for a significant portion of Canada’s trade surplus with America, it’s the oil and gas sector—not Trudeau’s fantasies of wind and solar dominance—that holds any sway in trade negotiations with the U.S.
Unfortunately, what leverage we do have has been greatly diminished by the fact that the U.S. is our only major market for oil and gas products. Trudeau and his government have only ensured this status quo remains.
Trudeau’s role in the demise of key pipeline projects stands as one of the most damaging aspects of his tenure. Energy East, a project that would have allowed Alberta’s oil to reach refineries in Eastern Canada and access global markets, was effectively killed after the Trudeau government imposed new regulatory hurdles. Meanwhile, Northern Gateway—a pipeline that would have opened up vital export routes to Asia—was publicly and decisively rejected by Trudeau in 2016. As he leaves office we need this kind of economic infrastructure more than ever.
It’s worth emphasizing that oil and gas is not merely a sector of the Canadian economy—it is a cornerstone of our prosperity. The energy industry contributes tens of billions of dollars annually to Canada’s GDP, supports hundreds of thousands of jobs, and funds vital public services through royalties and taxes. It is also a critical component of North American energy security. The U.S., our largest trading partner, depends heavily on Canadian energy exports to fuel its economy. We export more oil to the U.S. than the rest of the world combined. Yet, under Trudeau’s leadership, this vital industry was repeatedly hampered by ideologically-driven policies that prioritized optics over substance.
Trudeau’s government enacted legislation that directly targeted the growth of Alberta’s energy sector. Bill C-69, derisively dubbed the “No More Pipelines Bill,” imposed stringent regulatory requirements that made it exceedingly difficult for new energy projects to gain approval. By requiring the assessment of nebulous factors like “social impacts” and “gender-based analysis,” the legislation effectively created insurmountable hurdles for developers.
Another blow came with Bill C-48, which banned oil tanker traffic along British Columbia’s northern coast. This move effectively stranded Alberta’s oil sands by cutting off access to key export markets in Asia.
This bill not only stifled investment but also sent a clear message to the global energy market: Canada is closed for business.
One of the most egregious examples of Trudeau’s failure to capitalize on Canada’s energy potential came in 2022 when a German delegation traveled to Canada in search of LNG to offset their reliance on Russian gas. Instead of seizing this golden opportunity to strengthen Canada’s role in global energy markets, Trudeau dismissed the request, claiming there was no business case for LNG exports to Europe. The absurdity of this statement—given that Germany had made the trip precisely because they needed LNG—was staggering.
The Germans weren’t here for Trudeau’s elusive low-carbon “clean energy” tech; they came for reliable, Canadian natural gas. This debacle epitomizes where Canada stands after nine years of Trudeau: an energy powerhouse shackled by its own government’s ineptitude. The world wants our resources, but Trudeau has consistently found ways to undermine our ability to deliver.
The Trudeau government also dragged its feet and delayed critical infrastructure projects that did get done. The Trans Mountain Pipeline expansion, which promised to unlock new markets for Canadian crude, faced years of delays and skyrocketing costs under federal ownership. While the project is finally completed, it is a stark reminder of how Ottawa’s dithering has hampered the industry’s ability to compete on the world stage.
These policy failures did not occur in a vacuum. As Trudeau hamstrung Canada’s oil and gas sector, global demand for energy surged. Countries like the U.S. and Saudi Arabia seized the opportunity to fill the gap, strengthening their economies and geopolitical influence. Canada, meanwhile, squandered its potential, leaving billions of dollars on the table and jeopardizing its role as a reliable energy partner.
Canada’s energy sector is not just an economic powerhouse; it is a strategic asset that underpins our national sovereignty. As Trudeau exits the stage, his legacy on this front is clear: a weakened industry, missed opportunities, and a fractured federation. If Canada is to navigate the turbulent waters ahead, it must embrace the energy sector as the engine of growth and unity that it is.
For opponents of the oil and gas industry, Trudeau’s actions against the sector represent yet another chapter in the long saga of green-ideology hypocrisy. Despite the many attempts to undermine it, the rest of Canada now relies on the oil and gas industry as the country’s strongest asset in a potential trade battle.
Whatever happens in the coming days, the takeaway is clear: the next federal government must reverse the damage done. This means repealing counterproductive legislation, streamlining regulatory processes, and prioritizing infrastructure development. It means being proud of oil and gas done the Canadian way and helping that sector be the difference maker the rest of Canada is depending on it to be.
