Carney’s Response to Cenovus CEO’s Competitiveness Concerns Misses the Mark

Let the market work.

Cenovus CEO Jon McKenzie recently expressed his concern over Canada’s lack of competitiveness:

In response to a question on those remarks, Prime Minister Mark Carney shared his belief that low emissions are a key selling point when promoting Canadian energy:

While Carney makes some accurate statements – oil and gas exports have hit a record high – and while he has been much more pro-energy than the Liberal government was in the Trudeau 2.0 era, there is little evidence that countries desperate for energy are basing their purchase decisions on the domestic climate policies of potential sellers. Rather, those countries are making their purchase decisions based on their domestic energy needs. And at a moment like this, a moment where the closure of the Strait of Hormuz has put many energy imports in a very difficult position, what matters is the ability to produce and transport oil to those who want to buy it.

As noted by Heather Exner-Pirot – Director of Energy, Natural Resources and Environment – at the Macdonald-Laurier Institute – Cenovus already knows what its customers want:

Let the market work

The government-knows-best approach – particularly as it relates to climate policy and government overreach – has not worked well for Canada. In key ways, Prime Minister Carney has recognized this, with the cancellation of the consumer carbon tax, the reversal of the capital gains tax hike, the Canada-Alberta MOU, an openness to privatizing government-controlled assets, support for free trade, and pending regulatory changes that could speed up approval for pipelines and resource projects. These are real steps in the right direction, and Carney should build on those moves towards a more rational economic policy, rather than holding on to the heavy-handed, climate-obsessed approach that has left Canada poorer than we should be.

Spencer Fernando