As Donald Trump builds his new energy-focused administration, experts say it could open opportunities for Canada to expand the long-standing partnership between the two countries amid threats of sweeping tariffs from the president-elect.
Trump announced Friday that he will create a National Energy Council to entrench American “energy dominance” around the world. North Dakota Governor Doug Burgum will lead the department, while also heading the Department of the Interior.
“If I were the prime minister of Western Canada, I would probably be very happy… and anticipate great potential for trade and cooperation,” said Eric Miller, president of Rideau Potomac Strategic Group, a cross-border consulting firm focused on trade and supply chains. and government affairs.
Burgum’s new role will oversee a committee that includes all executive branch agencies involved in energy, including permitting, production, regulation and transportation.
“This Council will oversee the path toward U.S. energy dominance by cutting red tape, promoting private sector investment in all sectors of the economy, and by focusing on innovation rather than longstanding, but completely unnecessary, regulation,” Trump said in a statement. “.
The Republican president-elect said America’s energy dominance would make the world safer by allowing the United States to sell to its 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 the future of energy in North America.
“Together, we will advance energy security, fuel economic growth, and demonstrate the power of cross-border cooperation,” Smith said on X.
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“Let’s get to work!”
Miller said the main question after Friday’s announcement will be how Canada will change its strategy in dealing with the United States
On the one hand, Ottawa has put forward draft regulations to limit greenhouse gas emissions from the oil and gas sector. But on the other hand, Miller said, energy could be a powerful tool for building partnerships with the Trump administration.
“I think the United States is going to need more Canadian energy no matter what they do with themselves,” said Heather Exner-Perrot, special adviser on energy for the Business Council of Canada.
Burgum, a 68-year-old former software executive, will bring extensive knowledge of the Canadian energy sector to the White House. He has 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, southern Manitoba and Saskatchewan, and Burgum has worked with the two provinces to vaccinate truck drivers during the COVID-19 pandemic.
While Burgum became governor during the turbulent protests against the Dakota Access Pipeline, he also reportedly prioritized engaging with indigenous peoples during his term.
Burgum’s appointment on Friday, along with fossil fuel executive Chris Wright, as energy secretary was applauded by the industry, but faced opposition from environmental groups.
Wright is a “dirty fossil fuel advocate,” said Jackie Wong, senior vice president for climate and energy at the Natural Resources Defense Council, an environmental group.
Wright has been an outspoken critic of efforts to combat climate change.
Burgum has been labeled a “long-time friend of fossil fuel interests” by David Seabrook, president of the Wildlife Society.
But Canadian observers say Burgum’s appointment at least shows a practical hand amid Trump’s other picks for key positions that have favored loyalty to the president-elect over experience.
Trump’s designations of national security and border sites were, among other things, critical of Prime Minister Justin Trudeau and Canadian policies.
His election has raised concern north of the border ahead of the Canada-U.S.-Mexico agreement, negotiated under the first Trump administration, being reviewed in 2026.
Exner-Perrott said Burgum made her less concerned about Trump’s proposed tariffs targeting Canada’s energy sector.
She also noted that Burgum believes in climate change and is interested in carbon capture. He has set a goal for North Dakota to be carbon neutral by 2030.
“Obviously someone like Burgum would understand the implications for energy markets,” she said.
But Carlo Dade, director of trade and business infrastructure at the Canada West Foundation, cautioned that Trump’s “Make America Great Again” slogan does not include Canada.
If the United States can quickly increase energy production, it could lower the price of Canadian oil, he said, and the Biden administration’s reduction in investments in renewable energy research and implementation will also hurt Canadian industry.
However, Dade also said that the promised increase in production is likely to occur more slowly than expected.
“We have to abandon our old habits of thinking about Americans,” he said in an email.
“In the past, we would have seen opportunities in an announcement like this, but yesterday (wasn’t) today and we have to stop living and thinking about the past.”
& Edition 2024 The Canadian Press
