Philip Cross: Surprise! British Columbia is now a major energy player

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British Columbia is now a major energy playerDespite opposition from activists and governments, the province's oil and gas industry is now a key player, with more growth possibleAn LNG storage tank is seen at the LNG Canada liquefaction plant in Kitimat B.C. Completion of both the Trans Mountain pipeline expansion and the LNG Canada project has already helped diversify Canada's energy exports. Photo by Rob Trendiak /LNG CanadaSupporters of British Columbia’s natural resource sector can be proud of what they have achieved in spite of huge obstacles put in their way by governments and environmentalists. They have made progress, however grudging and slow, in building a new LNG project and completing an oil pipeline while continuing to develop the province’s oil and gas fields. Though far short of what could have been realized, enough has now been done to evaluate the benefits.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThey come in two phases: planning and building, which typically trigger a burst of construction, and then continuing gains in oil and gas output, much of it destined for overseas markets where prices are higher.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againBecause big infrastructure investments were needed both to produce energy and to transport it to market, construction has boomed in B.C.’s oil and gas sector over the past decade, from less than $5 billion in 2016 to $21.1 billion at the peak of construction in 2023, and $15.6 billion in 2024. The projects generating the boom include the LNG Canada megaproject and the TMX pipeline, as well as the capital spending to produce more natural gas.In the decade before 2016, B.C. accounted for about 10 per cent of Canada’s oil and gas investment. By 2024, big investments in B.C. and declines in the rest of Canada took the province’s share of Canada’s oil and gas investment to over 30 per cent, establishing B.C. as a major player in the country’s energy industry.Pipeline construction in B.C. jumped from essentially nothing in 2006 to $1 billion in 2015 and $4.4 billion by 2024, lifting it to over half of all pipeline construction in Canada, a seismic change from 2009’s less than 10 per cent.Meanwhile, investment in oil and gas production in B.C. nearly tripled, from $2 billion to almost $6 billion, enabling a 92.5-per cent increase in oil and gas output between 2015 and 2025. Natural gas led the way, with B.C. accounting for 37.5 per cent of Canada’s output in 2026, while its share of crude oil nearly doubled although it remained relatively small at 2.8 per cent of national output.Completion of both the Trans Mountain pipeline expansion and the LNG Canada project has already helped diversify our energy exports. Total exports to the U.S. fell 5.3 per cent in 2025 while those to Asia rose 15.9 per cent. The overall increase in exports of all products to countries other than the U.S. was led by a 33.5-per cent gain in energy exports, notably to China, which more than tripled, from $3.2 billion in 2023 to $9.7 billion in 2025. This almost exactly offset the decline in energy exports to the U.S. from $166.1 billion to $159.4 billion over the same period.There’s still lots of room for Canada to diversify its oil and gas exports even more. European nations are looking for non-U.S., non-Middle East energy supplies of energy. Because the U.S. already had the infrastructure to produce and export large quantities of oil and gas it was positioned to expand quickly into Europe both after Russia invaded Ukraine in 2022 and when war broke out in Iran earlier this year. Its net exports of oil have grown by two and a half times since 2021.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.On the other hand, Europe is understandably nervous about relying on U.S. energy because “the fear is that the U.S., especially under Trump, uses it as political leverage,” as Henning Gloystein, managing director for energy at Eurasia Group, has put it. This creates an opening for Canada to leverage its reputation for honouring contracts and maintaining friendly alliances to increase its European sales of oil and gas. Germany recently signed a natural gas deal with Ksi Lisims LNG in British Columbia that will attract $30 billion in investment.There is enough evidence already to contradict criticism that these new energy mega-projects are uneconomic. As Fatih Birol, head of the International Energy Agency, said during a recent tour of Canada, the world needs more Canadian oil and gas to fill the supply gap caused by both the Russia-Ukraine war and the blocking of the Strait of Hormuz. On his second visit to Canada in just six weeks, Birol recently stressed that the current geopolitical moment presents a “once in a lifetime opportunity” for Canada to become a “real energy export superpower” — though he stressed the need to act quickly.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.