Canada drilling more oil wells despite Trudeau’s anti-energy regime

Canadian oil and gas drilling has reached highs not seen in a decade, despite the Trudeau government’s anti-energy regime. 

According to the Canadian Association of Energy Contractors, some 6,604 wells will be drilled next year, up by 448 from 2024.

The trade association also projects the “Drill, Baby Drill” attitude will create thousands of jobs, with more operating days and service rig hours expected.

As revealed in the 2024 State of the Industry Report and 2025 Forecast, the oil and gas industry will continue its commitment to responsible resource development.

“However, the Association has been sorely disappointed by the lack of support from the federal government,” reads a press release. 

Mark Scholz, president and CEO of the trade association, also points to President-elect Donald Trump’s pro-business agenda as a comparative advantage over Canada. He warned that Canadian families will pay the price if Prime Minister Justin Trudeau does not follow suit.

“Our future and the future of generations to come depend on Canada’s ability to compete on the world stage, which will never be achieved unless the positive contributions and economic significance of our industry are recognized at the highest levels of government,” he said. 

According to a 2022 Fraser Institute survey, senior oil and gas executives typically ranked American jurisdictions as better investments for the oil and gas industry.

Out of the 15 energy jurisdictions, Wyoming ranked first, followed by Texas and Oklahoma. Saskatchewan, Alberta and British Columbia were ranked sixth, twelfth and fourteenth, respectively.

Eighty-two respondents pointed to the uncertainty concerning environmental regulations, disputed land claims, and the cost of regulatory compliance as significant areas of concern in Canadian jurisdictions compared to U.S. states. 

“Policies like the oil and gas emissions cap and anti-greenwashing provisions in Bill C-59 have left Canada’s energy sector in a difficult position, severely weakening its investment climate and creating additional uncertainty at a time when affordability and global energy security are already under threat,” reads the press release.

It maintains that Ottawa’s top-down approach with energy-producing provinces also poses potential constitutional challenges.

The survey also notes the Trudeau government has  deterred investment. According to Statistics Canada, the percentage of capital investment in Canada's oil and gas sector as a share of total capital investment plummeted from 28% in 2014 to 10% in 2022. 

The trade association says the Trudeau government has entirely disregarded the benefits of hydrocarbons, with additional 2,720 jobs expected to be created from increased drilling, employing 41,800 total people.

“With increased pipeline capacity following the completion of the Trans Mountain Expansion (TMX) and LNG Canada projects, combined with the new U.S. administration’s strong interest in securing more affordable energy, Canada’s growth potential in oil and gas is only expected to increase,” reads the release. 

The Government of Alberta threatened to invoke the Sovereignty Act against the oil and gas production cap, claiming it violates Section 92A of the Charter, which grants provinces exclusive jurisdiction over non-renewable natural resource development. 

The Conference Board of Canada estimates the cap would cost Canadian families $419 a month, as well as 151,000 jobs by 2030, and a reduced GDP of $1 trillion in the following decade.

Alex Dhaliwal

Calgary Based Journalist

Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.