Carney's energy head presses oil sand to build carbon uptake systems

(Bloomberg) -Kanada’s new energy minister said it is critical to build carbon recording systems for the oil sand and identify the export of crude and natural gas as an important priority for the Government of Prime Minister Carney. “Energy is Canada’s power,” Tim Hodgson, who was first elected to parliament last month after a career in finance, said in a speech to the Calgary Chamber of Commerce on Friday. “It gives us the opportunity to build the strongest economy in the G-7, lead the world in the right direction and be strong when we arrive at a negotiating table,” he said according to his prepared remarks. Hodgson’s speech tried to provide a new approach to Canada’s energy industry, who often complained that he was unfairly targeted by excessive regulation under the Trudeau government. The resentment shook the national unit of Canada and opened the door to a long -term separate referendum in oil -rich Alberta. Hodgson emphasizes the need to get major projects built quickly and highlights the importance of a series of sectors, including critical minerals, electricity transfers, nuclear power, biofuels and forestry. But in a departure from how Canadian ministers regularly spoke as prime minister during Justin Trudeau’s time, Hodgson posted oil and gas above his list. “The real challenge is not whether we produce, but whether we can get the best products to market before anyone else does,” Hodgson said. “We need infrastructure that gets our energy to tidewater and to reliable allies – diversifying outside the US.” But in order to be competitive, the oil of Canada must be ‘produced responsibly’, he said. Pathways Alliance Carbon Capture is crucial to acquiring it well, Hodgson said, and emphasized the Pathways Alliance project that would see oil sand businesses on a carbon survey system. Hodgson previously served on the board of one of the companies, Meg Energy Corp. He called on the industry and the Alberta government to work with him to build the project. “We need to demonstrate to our clients outside the US and our fellow canadians that we are a responsible industry – and this government believes that Pathways are critical to reality,” he said. Pathways has been locked up for months in talks on public funding for the carbon recording system. The government of Trudeau set up the Canada Growth Fund and gave it a mandate to negotiate contracts to guarantee the value of carbon credits, with the aim of providing investment security to the private sector. Although the Canada Growth Fund signed a few carbon survey systems transactions, it could not obtain an agreement with roads. More broadly, Hodgson presented himself as a bridge between the federal government in Ottawa and Alberta, and noted that he had grown up on the Prairies. “Like Johnny Cash singing – I was everywhere, man,” Hodgson said. “I want you to understand that I will be a voice for Alberta and Western Canada at the cabinet table.” He promised Carney government to make Canada one economy, not a series of separate regional, through infrastructure projects and regulatory reforms such as carbon markets harmonization. “We will make Canada a true conventional and clean energy superpower,” he said. “That’s our promise.” Alberta Environment Minister Rebecca Schulz welcomed the speech, but warned that conflict remained with the new government. “It’s a very different tone than we’ve heard of the federal liberal government over the past ten years,” she said, but cited the Trudeau-era policy such as net zero electricity rules and an oil and hospitality shell as a prolonged friction points. “If they really want to see quick victories, they will abandon some of the problematic and unconstitutional policies they still have on the table.” A new possible difference also emerged when Hodgson mentioned the need for “harmonizing and connecting” carbon markets in Canada to reduce the emissions. “That’s not what our industry asked for,” Schulz said. “This is quite problematic, especially given how it is linked to energy development and production, which is of course an area of ​​provincial jurisdiction.” (Updates with the response of Alberta Environment Minister in the 18th paragraph.) More stories like these are available on Bloomberg.com © 2025 Bloomberg LP