Mark Carney vowed to work with the Canadian oil industry to boost production and reduce emissions as the new prime minister touted an economic agenda facing the tariff threat from Donald Trump.
Canadian leaders have met with senior oil directors in recent days to expand the olive tree branch to a hostility to the Ottawa Liberal government under Carney’s predecessor Justin Trudeau.
Carney has provided tentative support for the new pipeline and provided billions of dollars in projects to capture carbon from Alberta oil sands, describing a “big bargaining” to support new energy exports while reducing emissions.
“There is real potential there,” Carney told reporters Monday in Sascaton, a city in Saskatchewan.
“We can give ourselves far more than any foreign government can take away,” he said. “So we are in a position where we can build large, bold, build Canadian economy and build it right away.”
The oil sector prelude marks a turnaround for Carney, who warned of climate risks associated with fossil fuel production as the Bank of England governor.
Most recently, he was a champion of the global decarbonization effort co-chair of the Glasgow Financial Alliance of Net Zero, which mobilized $130TN for climate action.
Canada's oil production is one of the drivers of its economy, but executives are confused by Ottawa's restrictions on efforts to build new pipelines to support more growth and break reliance on the U.S. market.
Carney also approved efforts to find new markets for his country, including claims that Canada should be the 51st state. Canada is by far the largest foreign oil supplier in the United States, which accounts for almost Canada's energy exports.
The Prime Minister vowed to speed up approval of the new project, and he spoke with provincial leaders about how to prioritize “projects that integrate Canadian investment into the energy superpower and build the most powerful economy in the G7”.
Carney achieved an extraordinary election victory earlier this year, tapping into anti-Trump sentiment and vowing to seize the economy in order to survive the trade war. His promise to make Canada a “energy superpower” is a common campaign.
However, he also faces opposition from Western provinces that have long opposed Ottawa's regulations, especially in terms of energy and climate. Carney’s election victory in April revitalized Alberta’s separatist movement, which hopes to hold a local referendum on the issue.
Carney's outreach work has received some approvals in Calgary, Alberta, the country's oil capital.
"We have recognized and appreciated the big changes in Prime Minister Carney's new federal government," said Lisa Baiton, CEO of the Canadian Oil Producers Association.
Byton said the appointment of Energy Secretary Tim Hodgson, who was also "very encouraged" to be appointing energy ministers, Goldman Sachs and Meg Energy, another oil producer in Alberta.
According to CAPP, new oil projects worth about 2.6 billion Canadian dollars ($18.9 billion) are being built in Canada, more than 10 billion Canadian dollars in planned projects or projects awaiting final investment decisions.
Carney met with Canadian energy sector leaders in Saskatoon on Sunday to talk about his ambitious agenda to revitalize the country’s economy and rebuild federal relations with companies and leaders in the west of the country.
A senior director of a company that met with the prime minister said there was "cautious optimism" about his position.
The AC $20 billion project, called Pathways Alliance, has been pushed by oil companies in western Canada to reduce emissions associated with the production of crude oil, which is considered the most carbon-intensive in the world.
Alberta's Conservative Prime Minister Danielle Smith tried to link federal support for the new export pipeline project to plans to capture carbon from oil sands.
"From $100 billion to $20 billion, that would cost $10 billion to $20 billion," Smith said in reference to the carbon fishing project. "If we had a million barrels of pipeline every day to the coast of northwest British Columbia, that would generate about $20 billion in revenue."
Carney said after Alberta captured emissions related to extracted emissions, “decarbonization of Canadian oil and gas must enter global markets, including Asia and Europe.
Other executives have different comments on Carney's strategy in the oil company.
“I told the Prime Minister that the federal government will submit it halfway,” said Adam Waterous, chairman of Strathcona Resources, Canada’s fifth largest oil producer.
He praised Ottawa's "carrots" such as support for carbon capture projects in the oil industry, but criticized "sticks" such as legislation limiting new off-road pipelines.
TC Energy is François Poirier, CEO of TC Energy, one of the largest North American pipeline companies, and has not seized the opportunity to promote new projects due to the associated costs.
"Since being elected as pragmatic, the Prime Minister has shown it in early dialogue," he said.
Climate capital
Climate change is in line with business, market and politics. Explore the coverage of FT here.
Are you curious about FT's commitment to environmental sustainability? Learn more about our scientific goals here