Canada: Is The Oil And Gas Industry Ready? Canadians Elect Liberal Majority Government

Last Updated: October 21 2015
Article by Alan Ross

Most Read Contributor in Canada, September 2016

On October 19, 2015, Canadians elected a majority Liberal government under Prime Minister-designate Justin Trudeau.  Prior to the election, the governing Conservatives had 159 seats in the House of Commons, the New Democratic Party ("NDP") 95, the Liberals 36, with a handful of seats for smaller parties, independents and vacancies.  The new breakdown, subject to any recounts, and reflecting 30 new federal seats, is: Liberals 184, Conservatives 99, NDP 44, Bloc Québécois 10, and Green Party 1.  The Liberal Party earned the largest increase in seats in history and Mr. Trudeau has indicated he will form a cabinet divided equally between men and women, another first for Canada.

Anticipated Energy Policy and Legislative Outcomes of a Liberal Government

Milestones for a new government will include a Speech from the Throne setting out its agenda, and a subsequent budget.  Key policy issues are likely to include the development of a federal climate change regime, a greater focus on the manufacturing sector and away from natural resource industries, and further government investment in infrastructure and transit projects.  The Liberal party platform suggests that corporations and high net worth individuals may face a greater tax burden.

Of particular interest to the energy industry will be how Prime Minister-designate Trudeau addresses environmental policy, pipelines and oil and gas development. Specifically, on climate change, the Liberals have indicated that carbon pricing will be left to the provinces with the federal government taking on a co-ordinating and implementation role. The position of the new government at the December, 2015 United Nations Climate Change Conference in Paris is expected to differ significantly from the Conservatives' sector by sector approach to environmental regulation.

A further distinction of a Liberal administration will be its approach to pipelines.  The Conservative government was an advocate of pipeline development and energy market access, with vocal support for Keystone XL and Northern Gateway, among other projects. Mr. Trudeau has supported the former and opposed the latter.  The pipeline focus during the lifetime of the new government will be Energy East. The Liberals have indicated support for the "made in Canada" pipeline development generally, and Energy East specifically.  However, as Energy East moves towards its approval process in 2016, it may prove to be challenging for the new government to be as "pro-pipeline" as the previous administration, particularly if the project continues to face opposition in the Province of Québec.

The energy industry will also be directly impacted by the new government's approach to federal regulatory energy reforms set out in the Conservative's Responsible Resource Development Plan, announced as part of Economic Action Plan 2012. These commenced in 2012 with amendments to the National Energy Board Act1 and continued into 2014 and 2015 with the Extractive Sector Transparency Measures Act2 and Pipeline Safety Act3, among other legislation.

The 2012 changes to the National Energy Board Act, opposed by the Liberals, streamlined the federal approval process for energy infrastructure. Similarly, while in opposition, the Liberal Party stated that the Pipeline Safety Act, as well as rail safety and tanker safety regulations implemented by the Conservative government, did not provide sufficient environmental protection or operators' liability levels. Federal tax credits for oil and gas exploration and development, sustained through the Harper administration, may also now be subject to review.

Finally, an important policy issue for the energy sector, and one squarely within federal jurisdiction, will be how successfully a new government engages with Canada's Aboriginal Peoples. This will include the extent to which the First Nations Financial Transparency Act4 remains in force. Mr. Trudeau made a point of saying in his acceptance speech that his government would respect First Nations rights and honour treaties. Moreover, the fact that a record number of indigenous candidates won seats in this past election may serve the Liberal government well in its relationships with Aboriginal Peoples.

Addressing Potential Impacts of the 2015 Election on the Oil and Gas Industry

The impacts to domestic and international businesses navigating the new Canadian political landscape are significant.  From greenhouse gas to corporate tax rates, multiple actors in the Canadian political system will influence those changes, including elected politicians, senior civil servants and government agencies.    

Shaping outcomes that not only protect business interests, but also advance objectives, will require the following:

  • understanding the complexities of federal agencies and departments, the process and mechanics of how legislation is developed and emerging regulatory frameworks; 
  • intelligence gathering on potential legislative, regulatory and policy changes;
  • policy analysis and assessment, including the background and context for policy development;
  • identification of key government entities, decision-makers and influencers as well the relationships among them;
  • monitoring the status of issues as they move through government decision-making processes, including the network of legislative committees, ministries, regulatory agencies and public consultations;
  • navigating federal government priorities as they advance through Treasury Board; and
  • alliance building with other stakeholders, including government and non-government actors. 

Borden Ladner Gervais LLP ("BLG") will be watching and reporting on material changes arising out of the October 19, 2015 election.  As a pre-eminent, full-service Canadian law firm, BLG has in-depth experience with all political parties and at all levels of government in Canada.  It enables BLG to provide expert advice on the impact of proposed or pending policy changes, the effect of those changes and how to prepare well in advance of their realization.


1.RSC 1985, c N-7, as amended 6 July 2012.

2.S.C. 2014, c. 39, s. 376

3.An Act to Amend the National Energy Board Act and the Canada Oil and Gas Operations Act, SC 2015, c 21 [Pipeline Safety Act].

4.S.C. 2013, c. 7

About BLG

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.