As news of the Prime Minister’s decision became public, some energy investors and traders took to social media to cheer the news. Canadian oil and gas stocks jumped to lead all other sectors in terms of gains Monday, with the S&P/TSX capped energy index climbing as much as two per cent in midday trading before settling to close up 0.79 per cent.
“The Liberal government has made Canada’s oil and gas sector uncompetitive,” she said.The federal government under his leadership made a major investment in the oil and gas sector through its purchase of the Trans Mountain pipeline in 2018. As owner of the project, the federal government also completed a multi-billion-dollar expansion of the pipeline which has allowed Canadian oil production and exports to climb to new heights.
The Business Council of Alberta, which represents many of the country’s largest oil and gas producers, has called the proposed cap a “discriminatory and divisive” policy that could result in the province losing tens of thousands of jobs. But Crockatt said Trudeau’s departure leaves significant uncertainty at a time when Canada cannot afford to be “rudderless.” He said concerns remain about president-elect Trump’s threatened tariffs against Canadian products, and businesses need to know the federal government is ready and able to negotiate on their behalf.
It’s also unclear what the future holds for some of the decarbonization projects that were proposed by the Canadian energy sector under a Trudeau government, Exner-Pirot said, including the high-profile Pathways Alliance carbon capture and storage project which would reduce emissions from oil sands production if built.