WASHINGTON, D.C. – The Financial Post is reporting that anxiety appears to be building between Canada and the United States when it comes to their national energy policies.
Though the two neighbouring countries have very integrated oil and gas markets, Canada is looking to tax and restrict oil and gas activity and infrastructure to meet international climate change agreements, while U.S. President-elect Donald Trump is said to be looking to push the American energy renaissance to the next level.
According to the president and CEO of the U.S. oil industry lobby, the American energy renaissance will continue to keep energy costs low, repatriate manufacturing, create jobs and boost the U.S. as a world energy superpower and exporter, while reducing environmental impacts through innovation in the private sector.
On the other hand, Canada’s policies seem to be aiming for a balance between energy development and environmental protection.
In a speech Tuesday in Washington on the state of American energy, the American Petroleum Institute’s CEO Jack Gerard said that his group will advocate to re-examine the “regulatory onslaught” and repeal many of the 145 regulations and other executive actions implemented by President Obama that are stifling oil and gas activity. It will also push for quick approval of energy infrastructure, increased access for oil and gas drilling, reduce taxes.
There is a good chance it will get what it wants, given Trump’s pro-fossil fuel cabinet picks, including former Exxon Mobil Corp. chairman Rex Tillerson as Secretary of State, and former Texas governor Rick Perry as Energy Secretary.
The oil and gas sector in the United States seems very excited about the years ahead, while the Canadian sector is very anxious about its declining competitiveness and the hurdles it continues to face to build export pipelines, even as oil and gas prices recover.
The jury is still out about whether energy companies that are still active will stick around.
Story courtesy The Financial Post: http://business.financialpost.com/news/energy/anxiety-is-building-as-canada-and-u-s-energy-policies-head-in-opposite-directions