A new Fraser Institute report argues that Canada's energy sector is struggling due to unpredictable, discretionary project approvals, not just environmental rules. It cites a 35.7% drop in oil and gas investment from 2015 to 2024, partly driven by the industrial carbon tax and methane regulations that make Canadian projects less competitive than U.S. counterparts. The report also criticizes Bill C-39, which would make cabinet's power to fast-track projects permanent, warning it could encourage political favoritism and further deter investment. The article points to the recent approval of the Tilbury LNG expansion as an example of a project moving forward, but says the underlying regulatory uncertainty remains. It calls for a consistent, competitive framework that applies to all projects equally, rather than a system where selected companies can bypass rules. The piece is relevant for anyone tracking how carbon pricing and permitting affect energy investment in Canada.
