Canada will accelerate the approval of major projects

According to a report by Mining Weekly citing Reuters, Canada's new Minister of Natural Resources, Tim Hodgson, recently announced plans to expedite approvals for major projects. Oil and gas executives have welcomed this move, hoping that Canada will re-establish a regulatory framework that supports energy development.

This marks Hodgson's first speech in Calgary, the capital of Alberta, a major oil-producing province in Canada, since joining the new cabinet under Prime Minister Justin Trudeau's successor, Pierre Poilievre.

The oil and gas industry has had a strained relationship with the previous government led by former Prime Minister Justin Trudeau, which prioritized climate action over economic development. However, Poilievre has pledged to help diversify energy export markets amid strained relations with the US, Canada's largest trading partner.

"In the new economy we are building, Canada will no longer be known for delays. We will be known for delivery," Hodgson said at an event hosted by the Calgary Chamber of Commerce.

As a former Goldman Sachs banker who won his election in Toronto, Hodgson has promised to advocate for Western Canada and help improve relations between the energy sector and the government.

He said he would identify and expedite projects of national interest to help Canada become a superpower in both traditional and clean energy. Canada is the world's fourth-largest oil producer.

"There will be no more approval processes that take over five years. All project approvals will be completed within two years," Hodgson said.

Hodgson noted that while Canadian oil is produced responsibly, infrastructure is needed to transport energy to ports for export to markets beyond the US.

In recent years, major oil pipelines in Canada have faced years of delays and legal challenges, leading to the cancellation of some projects and soaring costs for others, such as the expansion of the Trans Mountain (TM) pipeline.

Many CEOs of Canadian oil and gas companies said they were encouraged by Hodgson's banking background and his pro-oil and gas statements.

"We welcome and sincerely appreciate this new sense of collaboration," said John Whelan, CEO, President, and Chairman of Imperial Oil, after Hodgson's speech.

Hodgson also said that the federal government, the province of Alberta, and industry leaders must work together to establish an oil sands carbon capture and storage project.

Six of Canada's largest oil sands companies have proposed investing 16 billion Canadian dollars to build a carbon capture network to reduce the industry's carbon emissions, but negotiations between the two levels of government have stalled.

Kendall Dilling, President of the Pathways Alliance, which supports the project, expressed optimism on the 23rd that the project would move forward under Canada's new government.

"I think it's the right time now," said Dearing.