As Donald Trump builds his new energy-focused administration, experts say it could open opportunities for Canada to expand the two countries’ long-standing partnership amid threats of widespread tariffs from the president-elect.
Trump announced Friday that he would create a National Energy Council to establish U.S. “energy dominance” around the world. North Dakota Gov. Doug Burgum will be at the helm, while also heading the Interior Department.
“If I were any western Canadian premier, I would probably be quite happy … and anticipating great possibilities for trade and co-operation,” said Eric Miller, president of Rideau Potomac Strategy Group, a cross-border consultancy focused on trade, supply chains and government affairs.
Burgum’s new role will oversee a panel that crosses all executive branch agencies involved with energy, including permits, production, regulation and transportation.
“This Council will oversee the path to U.S. ENERGY DOMINANCE by cutting red tape, enhancing private sector investments across all sectors of the Economy, and by focusing on INNOVATION over long-standing, but totally unnecessary, regulation,” Trump said in a statement.
The Republican president-elect said America’s energy dominance will make the world safer by allowing the U.S. to sell to European allies. Burgum will also have a seat on the National Security Council.
Alberta Premier Danielle Smith congratulated Burgum, saying it was a pivotal moment for North America’s energy future.
“Together, we’ll strengthen energy security, fuel economic growth, and showcase the power of cross-border collaboration,” Smith posted on X.
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“Let’s get to work!”
Miller said a key question after Friday’s announcement will be how it changes Canada’s strategy for engaging with the U.S.
On one hand, Ottawa has introduced draft regulations to cap emissions of greenhouse gases from the oil and gas sector. But on the other, Miller said, energy could prove a powerful tool to build partnerships with the Trump administration.
“I think the United States will need more Canadian energy regardless (of) what they do themselves,” said Heather Exner-Pirot, a special advisor on energy to the Business Council of Canada.
Burgum, a 68-year-old former software executive, will bring extensive knowledge of Canadian energy to the White House. He’s been governor of North Dakota, where agriculture and oil are the main industries, since 2016.
His state shares a nearly 500-kilometre border with Canada, south of Manitoba and Saskatchewan, and Burgum worked with both provinces to vaccinate truck drivers during the COVID-19 pandemic.
While Burgum became governor during the turbulent protests against the Dakota Access Pipeline, it’s been reported that he also prioritized engagement with Indigenous nations during his tenure.
Burgum’s appointment Friday, along with fossil fuel executive Chris Wright as energy secretary, was praised by industry but faced pushback from environmental groups.
Wright is “a champion of dirty fossil fuels,” said Jackie Wong, senior vice-president for climate and energy at the Natural Resources Defense Council, an environmental group.
Wright has been a vocal critic of efforts to fight climate change.
Burgum was labelled “a longtime friend to fossil fuel interests” by David Seabrook, president of The Wilderness Society.
But Canadian observers say Burgum’s appointment at least shows a pragmatic hand amid other Trump choices for key positions that favoured loyalty to the president-elect over experience.
Trump’s designations for national security and border positions, among others, have been critical of Prime Minister Justin Trudeau and Canadian policies.
His election has caused concern north of the border ahead of a review of the Canada-U.S.-Mexico Agreement, negotiated under the first Trump administration, in 2026.
Exner-Pirot said Burgum has made her less worried about Trump’s proposed tariffs targeting the Canadian energy sector.
She also noted that Burgum believes in climate change and is interested in carbon capture. He set a goal for North Dakota to be carbon neutral by 2030.
“It’s clear that someone like Burgum would understand the implications on energy markets,” she said.
But Carlo Dade, director of trade and trade infrastructure at the Canada West Foundation, cautioned that Trump’s “Make America Great Again” mantra does not include Canada.
If the U.S. can rapidly ramp up energy production, it could lower the price of Canadian oil, he said, and cuts to the Biden administration investments in renewable energy research and implementation would also harm Canada’s industry.
However, Dade also said the promised ramp-up in production will likely happen slower than expected.
“We’ve got to break our old habits about thinking about the Americans,” he said in an email.
“In the past, we would have seen opportunities in an announcement like this, but yesterday (isn’t) today and we’ve got to stop living and thinking in the past.”
© 2024 The Canadian Press