Could Canada’s Energy Future Match the Majesty of Its Rockies?
By Vijay Jayaraj
Canada’s picturesque Sea to Sky Highway from Vancouver to Whistler, British Columbia, is 75 miles of soaring beauty. One of my favorites, the trip takes the traveler from sea level to an elevation of 2,200 feet with nearby peaks more than four times higher. Similarly inspiring in its economic rise was Canada towards the end of 20th century, remaining one of the world’s strongest economies through the global recession of 2009.
But things took a bad turn during the past decade or so, and Canada today finds itself on a tricky road. With the advent of climate politics, the anti-fossil fuel Paris agreement and the companion net zero fad put the country’s hydrocarbon sector out of favor.
Now, in 2026, stark reality is asserting itself with brutal clarity and there seems to be a return to commonsense economics, as Canadian provinces have taken steps to expand oil and gas output and exports.
Renewed attention to export capacity is seen in a political willingness to revisit projects once stalled by regulatory inertia. Policymakers speak less about restricting hydrocarbons and more about deploying them to meet global demand. This is a clear departure from the federal government’s long-standing impediments to the sector and from similar positions held by some regional leaders.
G7 leaders recently endorsed Canada’s capacity to add meaningful volumes to world markets and highlighted its value for partners in Asia. Alberta’s oil sands particularly stand out as a reliable option for Asian buyers wanting to reduce exposure to concentrated supply corridors in places like the Middle East.
South Korea plans to sharply increase imports of Canadian crude by as much as threefold this year to 16 million barrels, with the possibility of reaching 20 million annually. Seoul also is targeting more than 3 million metric tons of Canadian liquefied natural gas (LNG) each year through expanded investments in liquefaction facilities and export infrastructure.
Canada recently strengthened energy ties with Germany through a provisional LNG agreement, reflecting Europe’s continuing search for secure supplies after years of geopolitical instability in gas markets.
For Canada, this represents more than export revenue. It is a chance to reduce exposure to volatile global markets by anchoring demand in stable, long-term partnerships. When buyers commit to multi-year supply arrangements, producers gain predictability, infrastructure investments become viable, jobs follow, and revenues stabilize.
At the same time, domestic realities are forcing a reassessment of energy policy within Canada itself. Natural gas, once treated as a transitional fuel to be phased out quickly, is being reconsidered as a necessity for grid stability.
Proposed AI data centers in the country cannot be supported by even mega-scale installations of battery-backed solar projects; they require the reliability of natural gas plants. In New Brunswick, NB Power has said that a 500-megawatt gas plant is needed by 2028 to avoid rolling blackouts. The neighboring province of Nova Scotia has already arranged to draw one-fifth of the plant’s power.
Nova Scotia sits on a gold mine of subterranean energy. The region possesses an estimated 3 trillion cubic feet of recoverable natural gas, a resource that earlier analyses identified as underutilized.
Further east, Newfoundland and Labrador have updated assessments of offshore natural gas deposits and begun work on commercial development and LNG exports.
And then there is the potential bonanza from the financial impact of the Trans Mountain Expansion pipeline. Over the next 20 years, the pipeline will generate $17 billion in economic activity. The massive project will create 36,000 full-time equivalent jobs, pay out $3.7 billion in high wages, and funnel $2.8 billion of tax revenue into public coffers. These are not abstractions but real money that feeds families and finances public services.
Domestic political coordination is improving. Negotiations between Ottawa and British Columbia on major projects, alongside Alberta’s parallel efforts, exhibit a willingness to align provincial and federal priorities. Such coordination has been missing for years, often leaving projects stranded between competing jurisdictions.
The outlines of success are apparent: expanded pipelines feeding coastal terminals, LNG shipments from Atlantic and Pacific ports, long-term contracts linking Canadian producers with Asian and European buyers, and a domestic grid supported by reliable generation.
The recent wave of pro-energy policies promises greater self-reliance and participation as a key supplier of global energy needs. If the country stays this course, it will secure its own future and help power economies shaping the 21st century—a role equal to the majesty of the Canadian Rockies.
Originally published at American Greatness, July 9, 2026.
Vijay Jayaraj is a Science and Research Associate at the CO2 Coalition, Fairfax, Virginia. He holds an M.S. in environmental sciences from the University of East Anglia and a postgraduate degree in energy management from Robert Gordon University, both in the U.K., and a bachelor’s in engineering from Anna University, India. He served as a research associate with the Changing Oceans Research Unit at University of British Columbia, Canada.