During his inauguration speech on Monday, U.S. President Donald Trump proclaimed that the United States would achieve energy dominance, standing on the “liquid gold” beneath its feet.
And no time has been wasted to achieve this goal. Hours after the inauguration, Trump withdrew the United States from the Paris Agreement, signed executive orders to expedite permitting for energy projects and reversed restrictions on oil and gas exploration in Alaska.
And with Chris Wright — the CEO of Liberty Energy, the second largest hydraulic fracturing company in North America — at the helm as the next energy secretary, the United States is posed to be an energy superpower.
While Trump swiftly implements policies to bolster U.S. energy independence, Canada’s leadership continues to debate the merits of its own natural gas sector.
To remain competitive, Canada must emulate America’s decisive approach to streamlining its approval processes for liquefied natural gas (LNG) projects and pursue trade agreements to secure access to global markets.
Over the past decade, Canada’s natural gas industry suffered tremendously under the Trudeau government — in 2022 Trudeau infamously stated that there has “never been a strong business case” for Canada to export natural gas to Europe.
The contrast between the U.S. and Canada’s approach to LNG development could not be starker. In 2023, the United States became the world’s largest exporter of LNG, surpassing Qatar and Australia. This success stems from a network of eight operational LNG export facilities, seven under construction and 13 more approved for development.
By comparison, Canada has just one LNG export terminal nearing completion — a facility in British Columbia expected to begin operations in 2025, with a couple others expected to be operational by 2028.
Despite these challenges, Canada’s oil and gas industry holds immense potential. It is globally recognized for producing clean and ethically sourced energy. The sector is also a leader in environmental stewardship, accounting for over 30 per cent of all corporate spending on environmental protection initiatives, higher than any other industry.
Canada’s next prime minister should waste no time changing the direction of the country’s energy future. Rather than discriminate against efficient and cheaper energy sources, like natural gas, in favour of more costly sources, the Canadian government needs to take an agnostic approach.
While the United States has embraced a pragmatic approach to energy — focusing on expediting projects and fostering investment — Canada’s political leadership has prioritized stringent environmental assessments and bureaucratic hurdles, often to the detriment of economic growth.
By embracing the potential of its natural gas industry, Canada can position itself as a global leader in clean energy production, create thousands of jobs and ensure a prosperous future for generations to come.
National Post
Lucy Gay is a recent masters of economics graduate from George Mason University and a research assistant at an economic policy research centre in Arlington, Va.