Diane Francis: This is how you turn Canada into an ‘energy superpower’

Canadian Prime Minister Mark Carney, left, shakes hands with U.S. President Donald Trump at the G7 summit in Alberta this week. If united, Canada and the U.S. could create an energy superpower, argues Diane Francis. Photo by LUDOVIC MARIN/POOL/AFP via Getty Images

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Canada’s G7 turned into the G6 because U.S. President Donald Trump left early to deal with the growing Israel-Iran war. The annual geopolitical gathering is geopolitical theatre and Trump had the starring role until his departure.

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His departure cast a shadow on the meeting, but was understandable given the consequential nature of the decisions he must make in coming days and weeks. Trump did the same thing at the last G7 meeting held in Canada in 2018, when he left the Quebec gathering to meet with North Korea’s dictator and bad-mouthed Prime Minister Justin Trudeau. The difference this time was that Trump was cordial and met with Prime Minister Mark Carney to discuss tariffs.

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But few (including both leaders) realize that the two countries are geopolitical giants because they are the world’s foremost fossil fuel and energy superpowers. This provides them with enormous leverage. At the beginning of the year, I proposed they should collaborate to develop more energy — nuclear, hydroelectric, renewable energy and fossil fuels — to generate even more surpluses that could be exported to Europe, Japan and other allies.

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Energy is the lifeblood of all nations, but it has become a weapon in the hands of Russia and Iran, which both conduct brutal wars in their regions. Yet geopolitical power has shifted to North America, according to Pulitzer Prize-winning energy expert, Daniel Yergin.

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“It’s changed the geopolitical balance in the oil market. First, we have turmoil in the Middle East, and in the past, we would’ve seen prices shooting up. It’s not happening now. I think this has been a great re-balancing and, in the sense of security, it’s given the United States a degree of influence it didn’t have before,” he said.

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Yergin pointed out the geopolitical impact that U.S. liquefied natural gas has had. “It’s particularly significant in terms of the coalition supporting Ukraine,” he said. “Vladimir Putin thought he could use the energy weapon — cut off gas to Europe and the coalition would shatter. It didn’t happen, and it’s because of liquefied natural gas — and a significant part of that LNG comes from the world’s largest exporter of LNG, which is the United States.”

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The development of a fully managed energy market between the U.S., Canada and possibly Mexico should be a no-brainer. The goal would be to set a continental price for oil and natural gas based on supply and demand, not OPEC’s dictates. Prices would provide reasonable returns to producers, as well as fair prices for consumers, industries, farmers and developers. This would become the cornerstone of our economic growth and create surplus supplies that could liberate North America’s economy — and those of our allies — from the vagaries of petroleum villains and OPEC.

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If united, the U.S. and Canada could meet all their energy needs and build a massive export industry by providing fuel to Europe, Japan and other friendly nations. This potential was already demonstrated as the U.S. has rapidly built out its natural gas infrastructure. It now has more than 170 LNG processing plants and ports and has become the world’s biggest LNG exporter. Working with Canada, the two countries could shut down and help replace all Russian oil and gas exports to Europe and Asia.

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We need Canadian leaders who think big. Carney said he wants to turn Canada into an “energy superpower,” and this is how. But first he must scrap the radical anti-resource nonsense that he and Trudeau have espoused. A good start would be to resurrect all the LNG projects that were kiboshed by the Liberals. A fully integrated U.S.-Canada energy market would bring prosperity and a safer world.

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