Canada is aiming for significant economic growth fueled by major projects, particularly in the energy sector. However, the success of this ambition hinges on a crucial question: can Canada reform its regulations enough to attract the substantial investments needed?

Since 2014, investments in Canada’s oil and gas sector have mirrored the fluctuating oil prices. However, even as oil prices rebounded, investment didn’t return to pre-2014 levels. This raises concerns about the impact of current regulations.

Under Prime Minister Mark Carney, the new Liberal government has signaled a potential shift in approach. The inclusion of “conventional energy” in their “energy superpower” plan, and the proposed legislation to bypass (in limited circumstances) the controversial Impact Assessment Act, are notable examples. The Impact Assessment Act, with its stringent regulatory requirements for major projects, has been a significant point of contention.

The future of Canada’s oil and gas sector, and indeed its broader economic prospects, are deeply intertwined with the government’s ability to find a balance between environmental responsibility and fostering a climate conducive to investment.