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Last Friday, U.S. President-elect Donald Trump announced the creation of a National Energy Council, aiming to establish U.S. “energy dominance” globally, appointing North Dakota Governor Doug Burgum as the council’s chairman and Secretary of the Interior. Given that Canada is the largest energy supplier to the U.S., what will Trump’s energy policy mean for Canada – good news or bad?
Trump stated that the National Energy Council is a newly established department that will be involved in the licensing, production, generation, distribution, regulation, and transportation of all forms of U.S. energy. The council aims to help the U.S. achieve “energy dominance” by “cutting red tape, enhancing private sector investments across all sectors, and focusing on innovation while reducing unnecessary regulation.”
Additionally, Trump announced the nomination of Chris Wright, CEO of U.S. oil company Liberty Energy, as the next Secretary of Energy. He will also serve on the National Energy Council.
As a neighboring country, Canada naturally has advantages in trade, and both countries have a close energy cooperation. Canada’s oil sands and natural gas resources provide a large supply of energy to the U.S., particularly as the U.S. seeks to reduce its reliance on Middle Eastern energy. Additionally, there are several important oil and gas pipelines between the two countries, such as the Keystone XL project (despite controversies and challenges) and pipeline systems from TransCanada and Enbridge.
With the formation of Trump’s new administration, experts say this may present an opportunity for Canada to expand their long-standing partnership.
Eric Miller, president of the cross-border consultancy Rideau Potomac Strategy Group, stated, ” If I were any western Canadian premier, I would probably be quite happy … and anticipating great possibilities for trade and co-operation,” He mentioned that the key question now is how this will change Canada’s strategy of engaging with the U.S. On one hand, Canada has introduced draft regulations to cap greenhouse gas emissions from the oil and gas sector, but Miller believes energy could serve as a powerful tool for building partnerships with the Trump administration.
Alberta Premier Danielle Smith congratulated Burgum, calling it a pivotal moment for North America’s energy future. She stated on social media: ” Together, we’ll strengthen energy security, fuel economic growth, and showcase the power of cross-border collaboration,” Heather Exner-Pirot, special advisor on energy to the Business Council of Canada, added, ” I think the United States will need more Canadian energy regardless (of) what they do themselves.”
Burgum, a former software executive, has been the governor of North Dakota, a state where agriculture and oil are the main industries, since 2016. North Dakota shares nearly a 500-kilometer border with Canada, south of Manitoba and Saskatchewan. His familiarity with the Canadian energy industry may provide valuable insights for the White House.
In 2026, the U.S.-Canada-Mexico Agreement will be up for review, but Trump’s election has caused concerns for Canada, especially with his tariff threats. However, Exner-Pirot expressed that Burgum has alleviated some concerns, believing Trump’s administration may not impose tariffs on the Canadian energy sector.
However, Carlo Dade, director of trade and trade infrastructure at the Canada West Foundation, cautioned that Trump’s “Make America Great Again” mantra does not include Canada. If the U.S. rapidly increases its energy production, it could lower the price of Canadian oil, and decreasing Biden administration investments in renewable energy would harm Canada’s industry. Nonetheless, he noted that the promised increase in production will likely take longer than expected.
