441-00451 (Natural resources and energy)

Canada maintains a market-based energy policy that relies on the private sector to decide when and where energy projects should be brought forward. The Government recognizes the importance of accessing new and emerging markets for our natural resources. Canada is committed to developing these resources in a sustainable manner that protects Canada’s rich natural environment, respects the rights of Indigenous peoples, and supports a more resilient natural resources sector.

This resiliency includes developing infrastructure that aligns with Canada’s stringent environmental and safety standards. Resource corridors may be a means of achieving these objectives, when they meet relevant regulatory and market requirements. Building infrastructure along existing utility, rail and road rights of way is one approach that Canada’s industry uses to minimize the impact of new projects on the environment and communities.

At this time, there is no project application to build a west-east crude oil pipeline. If a new proposal is put forward, federal regulators will provide a fair and rigorous review process. The Government of Canada will consider whether to approve a project once the review is complete and public and Indigenous consultations have concluded.

Crude oil is a globally traded commodity for which purchasing decisions are made according to supply and demand fundamentals. Canada’s market-based energy framework allows refineries to source oil at the most competitive rates available, which ensures that adequate supplies of refined products are available to Canadian consumers at the lowest cost.

While Canada has the third-largest proven reserves of crude oil in the world, some refiners in central and Eastern Canada do import crude oil, due to several factors. Different refineries require different grades of crude oil, for instance, and central and Eastern refineries are configured to process lighter grades of oil. Pipeline connectivity also plays a role.  Refineries in Ontario and Quebec do process significant volumes of Canadian oil, shipped via pipeline such as Enbridge’s Line 5 and Line 78 which bring Canadian oil into Sarnia, and then via Enbridge Line 9 into Quebec. In 2021, 66% of Canada’s crude oil imports came from the United States. 

As Europe works to address the geopolitical and socio-economic vulnerabilities highlighted by current events, the Government of Canada is considering all measures to preserve energy supply chains in Canada, Europe, and, where possible, worldwide. On March 24, 2022, the Government of Canada announced, in response to requests from allies to address supply shortages due to the conflict in Ukraine, Canadian industry has the capacity to incrementally increase oil and gas exports in 2022 by up to 300,000 barrels per day (200,000 bbl/d of oil and up to 100,000 BOE/d of natural gas).  The intention is to displace Russian oil and gas, and not increase global emissions. In the long-term, it is the shift to domestically produced renewable energy and hydrogen, supplied by stable countries like Canada, that will provide true energy and national security to Europe and the globe.

The Government of Canada is taking action to keep our energy supply secure today, while preparing for an increasingly low carbon future.