{"id":2436,"date":"2025-11-05T22:37:48","date_gmt":"2025-11-05T22:37:48","guid":{"rendered":"https:\/\/www.worldpumpnews.com\/?p=2436"},"modified":"2025-11-05T22:37:48","modified_gmt":"2025-11-05T22:37:48","slug":"federal-budget-signals-tone-shift-on-oil-and-gas-but-key-details-still-unclear-experts","status":"publish","type":"post","link":"https:\/\/www.worldpumpnews.com\/?p=2436","title":{"rendered":"Federal budget signals tone shift on oil and gas, but key details still unclear: experts"},"content":{"rendered":"

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The federal budget has signalled a shift in tone on the oil and gas sector, but experts say there\u2019s still a lot of unknowns in how that will actually play out.<\/p>\n

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\u201cThe nexus between energy security, economic security, and national security is clearer than ever before,\u201d Finance Minister Fran\u00e7ois-Philippe Champagne said in the opening paragraph of a budget that commits to furthering the country\u2019s standing as an energy superpower.<\/p>\n

The budget included talk of potentially setting aside an emissions cap on oil and gas. It also includes measures like allowing the Canada Infrastructure Bank to support projects in the sector rather than limiting it to sustainability-linked projects.<\/p>\n

The various moves show a government that\u2019s more willing to acknowledge the strategic role of the oil and gas industry that will be around for some time, said Zach Parston, KPMG in Canada\u2019s leader in national infrastructure, capital projects, and sustainability.<\/p>\n

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\u201cThe change is a change in tone,\u201d he said.<\/p>\n

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\u201cThey make it clear the federal government is willing to \u2026 acknowledge the importance of the industry, and is willing to support it, and invest in it.\u201d<\/p>\n<\/p><\/div>\n<\/div>\n<\/blockquote>\n

The budget has also funded the major projects office that will help attract more investment into the sector, he said.<\/p>\n

But it\u2019s still unclear what the conditions will be on a potential lifting of the emissions cap, said Parston, which the government has said won\u2019t be necessary if it goes ahead with fixing industrial carbon markets, implementing methane regulations and gets large-scale carbon capture up and running.<\/p>\n

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If the government had really wanted to boost certainty, it could have just scrapped the emissions cap outright, said Richard Masson, president of energy sector consultancy Planning Solutions Inc.<\/p>\n

\u201cIt would have been very easy just to kill it, and that would have been a clear statement,\u201d said Masson.<\/p>\n

He said negotiations between the federal government and Alberta dealing with issues like industrial carbon pricing and the emissions cap have already been going on for some time, and the budget pushing for more stringent carbon pricing means more talk.<\/p>\n

\u201cThat just means another bunch of years of uncertainty,\u201d said Masson.<\/p>\n

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\u201cIt\u2019s obviously a more positive tone, and people I talk to in Calgary are encouraged by that, but most people are going to say, you know, we look at what\u2019s actually been done, and so far that\u2019s not very much.\u201d<\/p>\n

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