In a bold move to reshape Canada’s energy landscape, the heads of 38 of the country’s largest oil and gas companies have called on Prime Minister Mark Carney to unleash the nation’s energy potential. In an open letter addressed to Carney, the executives emphasized that the energy sector is crucial for economic growth and job creation, urging the prime minister to facilitate resource development if he intends to fulfill his campaign promise of making Canada the fastest-growing economy in the G7.
“As a major contributor to the Canadian economy, with significant untapped potential, the energy sector must play a pivotal role in your pursuit of this ambition,” the letter stated. The executives argued that growth in the oil and natural gas sector is essential for boosting GDP, generating jobs, and increasing tax revenue.
Rich Kruger, CEO of Suncor Energy, echoed these sentiments, stating that the industry is ready to collaborate with the new government on critical infrastructure projects that benefit all Canadians. “The industry, we paid a lot of attention throughout the campaign — the debates, policies, ambitions that were shared,” Kruger said. “The ceiling for Canadian energy is much higher than what we have achieved. And I think this call to action, as much as anything, is to turn us loose.”
The letter, sent on April 30, 2025, comes as Carney prepares to meet with U.S. President Donald Trump to discuss tariffs and trade. The energy executives are keenly aware that the new government’s approach to energy will significantly impact Canada’s economic sovereignty and its ability to develop new export infrastructure.
During TC Energy’s first-quarter earnings call on May 1, CEO Francois Poirier highlighted that both the Liberal and Conservative parties had discussed accelerating infrastructure development during the recent federal election campaign. He noted, “Canadians have never been more united in the belief that its abundant energy is key to economic sovereignty and prosperity.”
However, achieving this vision will require substantial regulatory reform. The industry has urged the government to abandon the incoming oil and gas emissions cap and to eliminate the federal carbon tax on large industrial emitters. They also called for a streamlined approval process for major projects, aiming for a six-month target for decisions on project applications.
“When we’re calling for an ambition much shorter than that — whether it’s six months or 12 months — the overriding message we’re trying to say is what we are doing now is not working,” Kruger added. He described the current regulatory framework as “beyond broke” and in need of reevaluation.
Mark Carney’s campaign had included promises to maintain the emissions cap, which poses a significant rift between the oil and gas industry and the federal government. “Let’s be candid with ourselves. It is a production cap,” Kruger stated. “It would continue to inhibit Canada’s ambition to be a global energy superpower.”
A report from energy consultancy Wood Mackenzie pointed out that while Carney has made energy a key initiative of his government, decoupling energy flows away from the United States will be a challenging task, as Canada currently sells 94 percent of its oil exports to the U.S. The report noted that it does not expect any revival of major pipeline projects like Energy East or Northern Gateway without a midstream proponent.
“We’re not saying never, but current conditions are more focused on the existing routes, and a lot of those are (to the) U.S.,” said Mark Oberstoetter, vice-president of research for Wood Mackenzie.
Corey Hogan, who won the federal riding of Calgary Confederation, expressed optimism about the new government’s approach. “I really appreciate the tone of this letter and let’s find constructive relationships — and let’s find that reset,” he said, emphasizing the broad support for simplifying regulations.
Political scientist Duane Bratt from Mount Royal University indicated that there may be more openness for new pipelines under Carney than there was under former Prime Minister Justin Trudeau. He noted that Ottawa’s priority appears to be addressing the ongoing trade war with the U.S., which could influence the government’s stance on energy development.
The letter to Carney was signed by prominent figures in the oil and gas sector, including executives from major oilsands operators, large pipeline firms, and junior natural gas producers, such as Pine Cliff Energy. Phil Hodge, CEO of Pine Cliff, remarked, “The world just has been clamouring for more Canadian natural gas and energy. Hopefully, Prime Minister Carney is going to lead a new era — and the energy superpower (talk), that’s fantastic. There’s no doubt that we have the resources to be able to do that. Now, we just need the regulatory framework.”
In addition to the energy sector’s demands, Strathcona Resources chair Adam Waterous suggested that Carney should declare a national energy emergency to shield projects from legal delays. He warned that failing to meet the sector’s demands could lead to an “unprecedented national unity crisis.”
Waterous also highlighted the potential benefits of energy development for Central Canada’s auto and manufacturing sectors, which have been adversely affected by high energy prices in Europe. He argued that Carney could leverage Canada’s energy resources to negotiate better terms with U.S. officials regarding tariffs on automotive products.
As the new government navigates these complex challenges, the energy sector remains united in its call to action. The executives’ letter underscores the urgency of unlocking Canada’s full energy potential to strengthen the nation’s economic sovereignty and build the necessary infrastructure for future growth.
