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US NEWS 
By: Joseph Quesnel
Recent problems at the Strait of Hormuz reveal stark realities about Canada’s energy security. The U.S. Energy Information Administration reports 20 to 21 million barrels per day—roughly 21 per cent of global petroleum—pass through this chokepoint.
Rising tensions and Iranian threats highlight how vulnerable global energy markets remain. When drone attacks struck Saudi Arabia’s Abqaiq facility in September 2019, oil prices jumped 19 per cent in a single day. The attack temporarily knocked out 5.7 million barrels per day—roughly half Saudi Arabia’s output. Russia’s invasion of Ukraine showed how fast prices spike and how long they can stay elevated.
Canada holds the world’s third-largest oil reserves but failed to help European allies when supplies faced disruption. Price shocks hit Montreal grocery stores, Ontario factories and Maritime heating bills. Canada’s resources and engineering were ready; federal policy was not. Regulators killed Energy East through delay, the federal cabinet ended Northern Gateway, and litigation slowed Trans Mountain.
Policy hostility drove billions in investment from Canada’s energy sector. The Financial Post reported nearly $150 billion in cancelled projects between 2015 and 2020. Shell, ConocoPhillips and Equinor sold Canadian assets and moved capital to more predictable countries. This capital flight weakened Canada’s ability to respond to global energy crises.
Alberta and Saskatchewan produce landlocked crude requiring pipelines to reach tidewater. The dispute between British Columbia and Alberta over Trans Mountain exposed structural friction between federal jurisdiction over pipelines and provincial control of resources. This conflict constrains Pacific market access and lowers oil prices at Hardisty.
Canada can’t replace Hormuz flows during a crisis. Claims about quickly adding two to three million barrels per day are wrong. That volume would cover only 15 per cent of Hormuz flows and would take years to build. Short-term improvements might add 100,000 to 200,000 barrels daily—a drop in the bucket. Even major brownfield expansions would take one to three years and add at most one million barrels per day.
Price shocks reach families immediately. Following Russia’s invasion, gasoline prices climbed 30 to 50 cents per litre within weeks. A temporary addition of 500,000 barrels per day for 90 days at $85 per barrel would yield $3.8 billion in receipts to sustain jobs, stabilize royalties and secure domestic supply.
Parliament needs to fix Canada’s broken approval system. First, create a fast track for energy security projects within the Impact Assessment Act. Make protecting Canada’s energy supply matter as much as environmental concerns. Second, preapprove key pipeline corridors from Edmonton to Prince Rupert and Montney to Kitimat. Third, impose a 24-month deadline for energy security decisions.
Parliament should also update the Canadian Energy Regulator Act with clear timelines for pipeline improvements—removing bottlenecks, adding pump stations to push more oil through existing pipelines and building parallel pipelines. Limit regulatory hearings to 300 days. Give cabinet authority to issue emergency orders that temporarily boost pipeline capacity during crises.
Canada should establish strategic energy reserves like the United States and other countries, requiring storage tanks near Hardisty, Edmonton and Saskatchewan, plus Atlantic-refined product storage. These reserves need federal-provincial cooperation following International Energy Agency guidelines. When the next crisis disrupts global oil supplies, Canada could release reserves to stabilize domestic markets and prevent severe price spikes.
The government should create an energy security order that provinces can request or Ottawa can issue after consultation. Limit orders to 120 days, renewable with parliamentary review.
North America can help stabilize global markets if Canada, the U.S. and Mexico collectively add two to three million barrels per day within two years. Australia fast-tracked LNG for Asia. America streamlined export terminals for Europe. Britain advanced North Sea projects. Canada can match that pace by fixing processes, respecting provincial roles, and partnering with Indigenous owners.
Norway steadied European gas markets after 2022 through reliable investment and permitting. The Hormuz crisis and Ukraine war showed how quickly prices move and how long they stay high. Governments must build capacity now through assessment processes that value energy security, regulators that authorize safe surges, export corridors to tidewater, joint reserves and clear triggers for action. These steps protect families, support allies and turn resources into strategic strength.
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