CALGARY, ALTA. — Federal Natural Resources Minister Tim Hodgson used the opening of the Global Energy Show to send a clear message to international delegates: Canada intends to position itself as a reliable and competitive energy supplier in an increasingly unstable global environment.
“Canada can be a supplier you need in a volatile world,” Hodgson told attendees, stressing that the country remains “reliable, democratic and once again open for business.” His remarks come as geopolitical tensions in the Middle East continue to unsettle global energy markets and push governments to reinforce energy security strategies.
The conference is expected to draw around 30,000 participants this year, with organizers noting a larger share of international delegates compared with previous editions, reflecting growing global interest in Canada’s energy sector.
Hodgson also underlined how energy policy has become inseparable from broader economic and geopolitical strategy. “We all know energy policy is now economic policy. It is security policy. It is trade policy. It is investment policy,” he said.
“The world is not waiting for Canada. But Canada is not waiting either. We’re rising to the moment.”
The discussions take place at a pivotal moment for Canada’s energy industry, as federal and provincial governments attempt to advance plans for a potential new West Coast oil pipeline. Alberta has indicated it intends to submit an application by July 1 to the federal major projects office, although the project still lacks a private-sector backer.
The proposed pipeline is tied to a broader energy agreement between Ottawa and Alberta, which also includes the Pathways carbon capture project. Under this framework, both initiatives are interdependent and expected to progress in parallel.
However, industry leaders have raised concerns about the structure of the policy and its impact on investment certainty.
Cenovus Energy Inc. CEO Jon McKenzie welcomed what he described as a “new-found sense of co-operation and purpose” between governments, but questioned whether current conditions would attract the level of private capital required for such large-scale infrastructure.
He criticized industrial carbon pricing mechanisms, arguing they undermine competitiveness and discourage investment in Canadian energy.
“Industry has been clear that the industrial carbon tax is insidious and it should be revoked,” McKenzie said. “Just as the retail carbon tax made life unaffordable for Canadians, the industrial carbon tax makes investments in Canadian energy and particularly our oilsands less competitive and drives out capital.”
McKenzie added that the current framework fails to provide sufficient investment certainty and risks discouraging capital inflows into the sector.
He also questioned the economic logic behind the Pathways project, which aims to reduce emissions by 16 megatonnes by 2045 through a large-scale carbon capture and storage network led by Cenovus and other oilsands producers. The captured CO₂ would be transported to a storage hub near Cold Lake, Alberta.
“But the question is really, how will Canada and Canadians benefit from this project?” McKenzie said. “The reality is this is a project with no revenue. It is simply another cost burden that will be borne by industry and the two levels of government.”
He estimated the project could cost between $20 billion and $30 billion while delivering only limited global emissions reductions.
“It’s difficult to imagine anybody would believe that this is a good use of funds regardless of their political orientation,” he added, also describing the proposed pipeline as “unfinanceable” under current conditions.
McKenzie further noted that oilsands producers are currently focusing on sustaining capital rather than major expansion investments due to what he described as an uncompetitive regulatory environment.
Meanwhile, Alberta Premier Danielle Smith reaffirmed her government’s commitment to advancing the pipeline project, aiming to secure designation as a project of national interest by October, with construction potentially beginning as early as September 2027.
“I recognize that putting it on paper is one thing, execution is another,” Smith said during a panel discussion. “But I think the fact that we put it on a paper, signed an agreement, demonstrates that we’re both committed to achieving that outcome.”
She added that demonstrating progress on emissions targets will be essential to attracting future investment, stating that “once we start demonstrating that we are meeting those targets, I think that the proof will be in that to the business sector and hopefully the investment will follow.”
