Canada's new energy minister vows to speed up permitting, reset industry relations
CALGARY, Alberta, May 23 (Reuters) - Canada's new Natural Resources Minister Tim Hodgson vowed to speed up the permitting process for major projects on Friday, in a speech welcomed by oil and gas executives eager to see Ottawa reset its regulatory approach to energy development
It was Hodgson's first speech in Canada's corporate oil capital of Calgary, Alberta, since being sworn in as part of Prime Minister Mark Carney's new cabinet.
The oil and gas sector had a tense relationship with former Prime Minister Justin Trudeau's government, which it viewed as prioritizing climate action over economic development, but Carney has pledged to help diversify energy export markets amid a trade dispute with Canada's No. 1 customer, the United States.
"In the new economy we are building, Canada will no longer be defined by delay, we will be defined by delivery," Hodgson said at an event hosted by the Calgary Chamber of Commerce.
A former Goldman Sachs banker who was elected in a Toronto riding, Hodgson pledged to be a voice for western Canada and help the country's energy sector improve relations with Ottawa.
He said he will work to identify and fast-track projects of national interest aimed at helping the country become a conventional and clean energy superpower. Canada is the world's fourth-largest oil producer.
"No more five-year reviews. Decisions will come in two years for all projects to make that happen," Hodgson said.
Hodgson said responsibly produced Canadian oil could displace oil produced in authoritarian regimes, but the country needed infrastructure to get its energy to ports for export to markets beyond the U.S.
In recent years, major Canadian oil pipelines have faced years of regulatory delay and legal challenges, leading to cancellations for some projects and spiraling costs for others, like the Trans Mountain expansion.
The CEOs of many of Canada's biggest oil and gas companies said they were encouraged by Hodgson's background in finance as well as the pro-development tone of his remarks.
"The renewed sense of collaboration is welcomed and genuinely appreciated," said John Whelan, president of Imperial Oil (IMO.TO), opens new tab, after the speech.
Hodgson also said the federal government, the province of Alberta, and industry leaders must work together to build a proposed oil sands carbon capture and storage project.
Six of Canada's largest oil sands companies have proposed building a C$16 billion carbon capture network to reduce emissions from the sector, but negotiations with both levels of government have stalled.
Kendall Dilling, president of the Pathways Alliance consortium behind the proposed project, said on Friday he is optimistic that under Canada's new government, the project will proceed.
"I do think the time is now," Dilling said.
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