Leaders in the Canadian oil and gas industry are concerned about the impact of the industrial carbon levy on the country’s competitiveness in the global market for energy. According to Lisa Baiton, head of the Canadian Association of Petroleum Producers (CAPP), the imposition of an industrial carbon tax puts Canada at a disadvantage compared to other oil-producing nations that do not have similar levies. Baiton emphasized the importance of Canada’s abundant oil and gas reserves in ensuring global energy security, especially in light of the ongoing conflicts in the Middle East and Russia’s invasion of Ukraine.
The 2026 BMO CAPP Energy Symposium in Toronto highlighted the need for Canada to focus on developing its energy resources responsibly to meet growing global demand. The Alberta government is set to submit an application for a new West Coast crude oil pipeline this summer, aiming to expedite the approval process for critical energy infrastructure projects. Discussions around the industrial carbon price and the Pathways carbon capture proposal are ongoing, with agreements yet to be reached.
Under the memorandum of understanding signed between Alberta and the federal government, the industrial carbon price in Alberta is expected to increase to $130 per tonne from the current $95. Despite concerns raised by industry leaders like Cenovus Energy CEO Jon McKenzie about the impact of the carbon levy on competitiveness and investment in decarbonization, analyses suggest that oilsands producers could potentially benefit from increased exports to Asia if new pipelines are built.
Chris Carlsen, CEO of Birchcliff Energy Ltd., highlighted the challenges faced by companies in reducing emissions and the need for a balanced approach to environmental and economic considerations. As Canada explores its potential as a major global energy supplier, industry experts like Mike Verney from McDaniel & Associates see opportunities for growth and development, given the country’s substantial oil reserves and favorable market conditions.
While Canada’s oil industry is recognized for its cost-efficient operations, concerns remain about the timeliness and feasibility of new projects due to regulatory hurdles and infrastructure constraints. The push for greater efficiency and sustainability in the oil and gas sector is essential for Canada to maintain its competitive edge and meet the evolving demands of the global energy market.