In a bold move on the eve of a general election, the heads of Canada’s largest petroleum producers and pipeline operators have issued an open letter urging the nation’s political parties to rapidly streamline regulations and bolster energy infrastructure. Dated March 19, 2025, the letter outlines a comprehensive strategy to facilitate new oil and natural gas projects to ensure the country’s economic sovereignty and enhance its role as a major energy exporter.
“It’s a Canadian sickness that we can’t get things built,” Adam Waterous, executive chair of Strathcona Resources, lamented in an interview following the letter's release. He believes that utilizing the federal government’s emergency powers is crucial for fast-tracking necessary regulatory frameworks. The letter was signed by 14 prominent industry executives representing the majority of the country's natural resource sector.
Recent opinion polls suggest a growing public support for developing new energy pipelines, fueled in part by U.S. President Donald Trump’s tariff threats and the reality that over 90% of Canadian energy exports are directed toward the United States. However, progress on major pipeline projects has been dismal, with Kevin Birn, a chief analyst at S&P Global Commodity Insights, revealing that only two out of five proposed projects over the last 15 years have been completed: the Trans Mountain expansion and the Enbridge Line 3 replacement.
According to Birn, the average project review takes approximately six years, while the total timeline from application to either termination or completion stretches to about eight years. As the letter clarifies, the issue lies not solely within the regulatory process but also in the comprehensive system of reviews, court challenges, and lengthy government decision-making.
In their appeal to the leaders of Canada’s major political parties—namely the Liberals, Conservatives, NDP, and Bloc Québécois—the executives emphasized the vital role of energy exports in defending Canada’s sovereignty and aiding global efforts against energy poverty. The letter insists on declaring a Canadian energy crisis to enable legislative changes that would quickly benefit the oil and gas sectors, including lifting the emissions cap and repealing the federal carbon levy on large industrial emitters.
Moreover, key recommendations include overhauling the Impact Assessment Act and boosting investment by incentivizing Indigenous co-investment through loan guarantees. “If we’re able to fast-track some of these projects, then we could have shovels in the ground soon,” TC Energy CEO François Poirier expressed, indicating that lessons drawn from Germany’s expedited construction of LNG terminals post-Russia’s invasion of Ukraine could inform Canadian strategies.
However, environmental advocates, such as Janetta McKenzie from the Pembina Institute, argue that a six-month approval timeline is overly ambitious. “That is an extremely aggressive timeline,” she cautioned. She characterized the industry's push as a flawed assumption that expanding fossil fuel production would solve current economic challenges, while also pointing to the global shift away from hydrocarbons.
The executives' letter further addresses the global context of energy reliance. It points out that over four billion people worldwide lack access to reliable energy, asserting that Canada, as a top-five global oil producer, has both a responsibility and an opportunity to fill the gap in energy supply while also combating carbon emissions.
“Canada’s LNG could replace more emissions-intensive coal-fired electricity generating plants throughout Asia,” the letter states, underscoring the energy sector's potential to contribute positively to international energy demands and environmental goals alike.
As deteriorating economic indicators heighten concerns about productivity and investment in Canada, ATB Financial forecasts a meager 0.6% growth for the Canadian economy in 2025, with Alberta’s growth revised down to 1.5%. Mark Parsons, ATB’s chief economist, suggests that the key to offsetting these economic weaknesses lies in the successful completion of infrastructure projects.
In the context of these challenges and calls to action, the energy executives stress that collaboration among industry leaders, the federal government, and society is essential for navigating Canada's energy landscape. “Realizing Canada’s opportunity will take collaboration,” the letter emphasizes, urging immediate engagement between the government and energy sector for the prompt development of critical infrastructure necessary for economic competitiveness.
As Canada stands at a turning point in its energy policy and economic strategy, it remains to be seen how political leaders will respond to the pressing call from industry executives. The proposed measures, if adopted, could serve as a catalyst for significant changes in how Canada manages its vast energy resources and infrastructure needs.
