Energy, trade diversification front and centre in campaign

The sun sets near a liquified natural gas power plant at the coastal village of Santa Clara in Batangas province, Philippines on Tuesday, Aug. 8, 2023. (AP Photo/Aaron Favila)

In northern British Columbia, a hot spot for Canada’s energy sector, an oil refinery was Monday’s backdrop for what is becoming a key issue in Canada’s federal election campaign.

“We need to move at the speed of business to bring our jobs home and become self reliant,” said Conservative Leader Pierre Poilievre during a campaign announcement in Terrace, B.C., Monday.

Trump’s trade war has exposed Canada’s vulnerability in the energy sector as most of the country’s natural gas and crude oil exports go to the U.S., making self-reliance a motivating factor.

“Do you want your entire oil supply to be dependent on a permit that President Trump could revoke today, that we would have no recourse on?” said Andrew Leach, an economics and law professor at the University of Alberta.

“I think the answer to that is becoming no. People are very nervous about the uncertainty.”

Poilievre promises to approve 10 big new energy projects and fast track regulatory approvals.

“The single most powerful thing we can do to break our dependence on the Americans and bring jobs and dollars home would be to rapidly expand our energy production and exports,” said Poilievre.

Liberal Leader Mark Carney has put energy at the forefront of his campaign too.

He’s also promised a more efficient approval process for big projects and has pledged to build an energy corridor.

“There is a big advantage to Canada to push that out,” said Carney about traditional energy sources, at a campaign stop in Victoria, B.C., Monday.

“Use our own oil, use the resources from that for other things, including protecting our environments our social programs as well.”

Liquified Natural Gas (LNG) is the focus of most new energy project considerations. Proponents call it a cleaner traditional energy source, but it still has significant environmental impacts, and some experts say it’s not a quick fix.

“We’re really late to the game,” said Werner Antweiler, a professor at UBC’s Sauder School of Business.

“That means the profitability of these projects is questionable, especially if they’re entering a market that’s going to be very crowded by the time in 2030”

Canada does not currently export LNG to any overseas markets.

The first shipments are expected to leave from a terminal in norther B.C. later this year.