Page 6 - NorthAmOil Week 42

NorthAmOil COMMENTARY NorthAmOil
Canada’s energy industry concerned by election result
Canada’s Liberal Party has narrowly held on to power, but will have to rely on the support of the NDP, and potentially the Green Party, in a result that is causing worry for the country’s energy industry
CANADA
WHAT:
Canada’s NDP and Greens will wield more power
in Parliament, causing concern within the energy industry.
WHY:
The Canadian Liberal Party has been re- elected, but has been reduced to a minority government.
WHAT NEXT:
The Trans Mountain expansion will likely proceed, but other energy projects will face more headwinds.
CANADIAN Prime Minister Justin Trudeau and his Liberal Party have narrowly held on to power following the October 21 federal election. However, they fell short of an overall majority of 170, and have been reduced to a minority government that will require the support of a smaller, left-leaning party to pass legislation. This will primarily be the New Democratic Party (NDP), but the Green Party could also wield sig- nificant influence despite only having won three seats as of press time on October 22.
According to Elections Canada, the Liberals won or were leading in 157 out of 338 seats by press time. The Conservative Party won the pop- ular vote, as well as winning or leading in 121 seats, while the NDP led or had won in 24 seats. Many in the energy industry had been hopeful of a Conservative victory. Indeed, the Conserv- atives won by a landslide in Alberta, which is the heart of Canada’s oil and gas industry, taking 33 out of 34 seats in the province.
“Albertans and Calgarians have sent a clear
message,”CalgaryMayorNaheedNenshisaidin a statement. “The frustration felt on the ground here was reflected in the polls, and I hope the federal government listens. There are very deep concerns and very real issues that need to be addressed. We’ll continue to fight to make sure Calgary’s story is heard,” he added.
Cause for concern
The national result is cause for concern within Canada’s oil and gas industry, given that both the NDP and the Greens want to prioritise tackling climate change over the further development of resources such as Alberta’s oil sands. These parties also oppose the development of new pipelines out of Alberta, which would spur oil sands production growth. Both the NDP and the Greens have voiced their opposition to the Trans Mountain pipeline expansion, which Trudeau’s government owns after having bought the entire project from Kinder Morgan in 2018 in a bid to save it.
Canadian Prime Minister Justin Trudeau and his Liberal Party will have to rely on the support of the NDP, and perhaps the Greens, to pass new legislation.
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Week 42 22•October•2019