Canada’s position as an energy exporter is its “strongest card” in trade talks with the United States, Energy and Natural Resources Minister Tim Hodgson said Friday as the clock ticks down to the review of the Canada-U.S.-Mexico Free Trade Agreement (CUSMA).
Ensuring Canada uses its energy sector as leverage in trade talks is going to be a priority going into his second year in office, Hodgson said at an event in Toronto.
“I want our energy and natural resources sectors to play the strategically important role it should be playing – as Canada’s strongest cards in the CUSMA renegotiation,” Hodgson said.
“I spent my whole life doing deals. Ultimately, it is about knowing which cards are your best and playing them effectively. Energy, electricity, forest products, minerals — these are our best cards.”
Canadian energy exports are critical for the U.S. energy security, analysis from TD Bank shows. In 2024, Canadian exports of energy products (oil, natural gas, power) to the U.S. amounted to nearly $170 billion.
The analysis shows that any tariffs on Canadian crude oil could lead to an immediate jump in U.S. gasoline prices of as much as $0.30-0.70 per gallon.
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In 2023, Ontario alone directly supplied electricity to 1.5 million U.S. homes across Michigan, Minnesota and New York, TD Bank analysis shows.
“Remove Canadian energy exports from the equation and the trade story flips. Ex-energy, the U.S. enjoys a trade surplus with Canada of around C$60 (US$45 billion),” the TD Bank report said.
Canada is also a key supplier of critical minerals to the U.S., it added.
Last week, U.S. President Donald Trump issued several pipeline permits to facilitate the transportation of crude oil and petroleum products between the U.S. and Canada, including a permit for constructing new pipeline infrastructure.
In his second year as energy minister, Hodgson said he will focus on creating a “coherent strategy” for electricity and nuclear energy.
“Because every major ambition we have, from AI to advanced manufacturing to mineral processing, depends on reliable and affordable electricity,” he said.
By spring of 2027, the federal government plans to have at least five to 10 new major projects either reach the final investment decision stage or even break ground on construction, Hodgson said.
Ottawa will also advance work on the Canada-Alberta pipeline deal.
Prime Minister Mark Carney and Alberta Premier Danielle Smith signed the memorandum of understanding (MOU) in November last year, laying the groundwork for a new pipeline.
The flagship proposal in the MOU is a bitumen pipeline from Alberta to Canada’s West Coast that would carry an additional 300,000 to 400,000 barrels per day destined for Asian markets.
The project “could add an average of $31.4 billion to our GDP every year for the next decade, equivalent to increasing Canada’s GDP by 1.1 percent annually,” Hodgson said.
“The MOU also includes plans for nuclear and AI data centres in Alberta, and new export infrastructure across western Canada,” he added.
Chinada is screwed. Alberta wants out. BC has no land, Federal government is finally knowing how it feels to get screwed over. Alberta is gone and so are the Americans. Good luck with your new world order and elbows up. The Americans don’t need you and Alberta doesn’t eigther. Why support 2 governments off your pay and payroll when the provinces pay and administer most of the government programs already. Old British rule needs to be gone. That means the constitution and confederation!!
Article 31. Carney wants tariffs on Canadians. Power over Canadian population.
If Canada allows Chinese EVs into Canada that breaks CUSMA free trade this will bankrupt Canadians but will not touch rich liberal insiders. Carney is doing things illegally intentionally to screw Canadians. Pulling USA wines and booze off shelves illegal once again bankrupt Canadian public on other goods as we get hit with tariffs. Canada is the bad guy not USA
Canada keeps breaking CUSMA since 2022 and all you sheep thinks it’s Trump’s fault. Canada brings in Chinese steel and labels it Canada once again illegal. Mark Carney is killing Canada intentionally people facts tell us that and media in Canada says nothing.
Didn’t both Trudeau and Carney call for the “phase out” of Alberta Oil Sands back in late 2019/ early 2020. Trudeau pulled the permit on the Teck Frontier Oilsands Project.
For electricity, the US would laugh in our faces! Canada is a net INPORTER of electricity. They would make money from a reciprocal tax. For Oil & Gas, the Feds ran that one up the pole a year ago. Smith told them no. If the Feds try it they violate Section 92A of the constitution (and maybe existing trade deals). The way to charge the US more for Alberta Oil & Gas was to build excess capacity for oil & gas and liquefaction plants for gas to the west coast years ago to create price competition. Guess who made that impossible for the last 11 years.
I’m looking forward to October 19 to exit the Carney Clown Show.
Ford and Quebec can take haircuts on exports before Alberta. They are the Elbows Up crowd and acting like fools who can’t read the room.
“While 75 to 80 per cent of our exports go to the United States, Carney is flapping his arms, flying far-flung around the world, while talking big about middle powers. He’s putting 80 per cent of his energy into marginal improvements to the bottom 20 per cent of our trade; he’s focusing on small relationships across distant markets, while treating our largest, most natural trading partner like an adversary.
This is where Carney’s approach is so dangerous. The deep irony is that Carney is doing exactly what Trump does; one might say he’s taken a page from Trump’s playbook. On behalf of indignant Canadians, he’s taking it personally. He’s doubling down. He’s playing to his base. He’s letting ego and stubbornness drive the bus. He’s setting up for the same kind of self-inflicted losses Trump has repeatedly inflicted on America.” Shannon Boschy
Once again Carney and his liberals have these plans for canada how to deal with the u.s. But they mainly include alberta and saskatchewan resources. So are premiers need to start calling the shots and show Ottawa were the money and power in this country is.
This is so fascinating. Alberta is dimished by Ottawa for decades. Alberta faithfully sends their transfer payments. We are mostly considered an annoyance by Ottawa. Now, they use ALBERTA resources as a leverages tool in CUSMA negotiations. Mind blowing.
For10 years Trudeau killed energy development in Canada and the media applauded his efforts.
Carney is going in opposite direction and same media is applauding him.
When will the media get back to their role of objective commentary free of party politics and truly analyze what the government is doing ?
What happened to tough talking Lard Ford saying he was going to shut the power off to the USA. Hilarious
Does he realize that Canada exports so much oil and gas to the US because that’s the only place it can go? We have no pipelines to tidewater. If we don’t sell to the US, it just sits here.
Otoole and Carney look like brothers with the same bland flour and water personalities. Otoole is just chubbier.
Using fossil fuel as leverage is bound to create push back from Alberta. Compounding the problem is the fact that some in Alberta already want to leave Canada and join USS, including the Premier.
😂😂😂
Alberta should cut off all O&G supply to Ontario /East and repute to the USA and other jurisdictions that are more grateful for the product.
As an Albertan, I would rather be the 51st state than stay in Canada.
Alberta better hurry up and separate before these fools give our only truly Canadian money and jobs providing industry away. Sell us out as the 51st state! Unbelievable!!!
Carneys tough talk Elbows Up is all for his base.
His bark is much worse than his bite.
No, but they will use it to divide and conquer Canada. They will use it to set up Carney’s kingdom in the East. They will use it to get the EV mandate installed and you will have one and pay for it whether you like it or not!
Oh really? So another part of your plot to destroy Alberta? “We will cut off you oil” if the Orange Man Bad does not bend his knee to the great libfascist LPC and Karl Marx Carnage?
you could say that Canadians are more reliant on the us for energy then they are reliant on Canada. simply put 70 percent of canadians are in ont and Quebec so if Canada cuts them off it only effects maybe 20 percent of us citizens( 30 to 60 cents more for gas according to media) plus electric i guess while 70 percent of our pop relies on us for oil. remember that whitmer in Michigan wants to shut down the pipelines because of the spill in Kalamazoo. be careful what you wish for. gooo carney
I guess Carney forgot about Line 5. lol The USA can shut down oil shipments from Western Canada as the pipeline travels into the USA and then comes back into Canada in SW Ontario.
ontario should be very careful with this idea and heres why. if we cut off energy to us then they could, in theory cut off line 5 and line 9 from alberta to sarnia plus the flow from north dekota. if that happened then no more flights and no more gas in Ontario and Quebec ( quebec is better off because of st Lawrence). which very likely is what the gov wants. think of the climate accords wed be net zero lol. goooo carney
Stop energy exports to force a deal? The Federal Government still doesn’t understand Trump. If you push Trump into a corner he is not going to break down crying. He will come out fighting bringing his military into Canada to secure the flow of energy for National Security reasons.
And second if the Federal Government stops Alberta oil from going to the USA that will be a boost for Alberta independence.
@ Charlie. An export tax is essentially theft.
Because of Danielle Smith diplomacy, Alberta O&G was only hit with a 10% tariff. Because of Elbows Up Carney, tariffs on other sectors have increased since Trudeau left. Carney has been a huge failure so far.
mentioned this on another story, buy what is going to happen in eastern canada when the saudi oil tankers dont show up. what percentage of gas in eastern canada comes from saudi oil? that would be an interesting story to tell. can north dekota fill the gap? how would they ship the extra oil to the irving refinery? will they start buying oil shipped by tankers from gulf coast? seems to me(a layman) that canada is also quite reliant on us energy. gooo carney
Oh, y’mean that energy sector that TrudeauCarney Gang is actually trying to shut down with their industrial carbon tax, tanker ban, MOU to nowhere, etc. Pretty soon this left wing Gang won’t have AB to kick around anymore!
What energy? Republic of Alberta will decide.
Lard Ford can shut off the power to the USA if he wants.
Ontario certainly didn’t come to Alberta aid while Trudeau and Careny kicked the industry in the teeth so Alberta will not be helping Ontario with its problems right now with tariffs.
That’s what should have happened a year ago. Put a tarriff on NG and Crude. That would have stopped the US from doing the steel and aluminum. I can’t understand the brains these MP’s suppose to have!!
Elbows Up Carney being totally dominated by POTUS Trump. MAGA to strong for Canada
This is exactly what Pierre would do. It’s really unfortunate he will have to oppose this.
Lard Ford already tried to sell out Western Canada when early on during the Elbows Up wet dream he suggested to put an export tax on Canadian Oil and Gas.
There is no leverage. Liberals decided to kick the Canadian Oil and Fas industry in the teeth for over a decade. Also, the resources belong to the Provinces, not them.
I’m sorry what energy sector?
I seem to recall reading somewhere that a US senator proposed in the 60’s of offering every citizen of Canada 1 million dollars for us to join them. With inflation i would think 3-5 would be more reasonable. 41 million people would only be 205 million. We gave Ukraine alone more than 10X that. Anyone interested?
He needs to address Smith. She is the one who agreed with Trump for the cross border pipeline. How does Carney think he can cut off oil exports, when he will not get rid of the tanker ban on the west coast, and keeps including natives in the discussions.
He is not playing with a full deck. –
Why is Hodgson focusing on electricity and dirty nuclear energy? – focusing on Ontario rather than what is really driving Canada.
Carney’s Brookfield Carbon tax makes are energy industries to expensive. Doesn’t help the environment or climate.
They made America evil to gain votes on misleading information.
Trump said it would cost Canada less to join U.S. then build are military to meet NATO agreements.
Liberal spun it and fools believed the corrupt treasonous mainstream media.
I don’t care if they discuss eastern electricity, but leave AB’s O&G out of it. We’re already in negotiations to build another pipeline south because no other lines will get approved for any other direction. Carney’s MoU isn’t worth the crayon it was scribbled with.
Strange? All of sudden the Liberals like Canada’s energy sector.