Before travelling to the United States to discuss the future of the North American trade deal, federal cabinet minister Dominic LeBlanc sat down for nearly two hours with oil and gas industry officials, including Cenovus Energy executive vice-president Jeff Lawson.
The session, which included federal Natural Resources Minister Tim Hodgson, delved into the role of energy ahead of an upcoming review of the Canada-U.S.-Mexico (CUSMA) trade agreement. Coming out of Monday’s meeting in Ottawa, the industry and the Carney government appeared to be firmly on the same wavelength.
“We’re perfectly aligned with the federal government,” Lawson said in an interview. “The energy trade is so important to both countries, and it’s been such a long-standing, mutually beneficial relationship, where both sides are benefiting … We want to do everything we can to preserve that, and I think that we can.”
The meeting also included AltaGas CEO Vern Yu, South Bow CEO Bevin Wirzba and executives from six other companies. Before his trip to Washington on Tuesday, LeBlanc sent a note to his counterparts in the United States and Mexico, with the Canadian government recommending the trade agreement be renewed for another 16 years.
Energy remains Canada’s largest export product to the United States. Canada is the top foreign supplier of oil and gas to the country, while the U.S. is the largest international supplier of energy to Canada. After some early concerns last year, oil and natural gas exports have almost entirely avoided U.S. tariffs under the existing CUSMA agreement, which is up for renewal next month.
A key question heading into the next round of trade discussions with the U.S. is how to safeguard the integrated nature of energy flows, while also looking to expand exports into other markets.
“I want our energy and natural resources sector to play the strategically important role it should be playing, as Canada’s strongest cards in the CUSMA renegotiation,” Hodgson said in a speech in Toronto in April.
A recent report from the Canada Energy Regulator (CER) highlights the importance of trade between the two countries. Canadian sales of oil, gas, refined petroleum products and natural gas liquids to the U.S. totalled $158 billion last year. These energy products made up 20 per cent of Canada’s total goods exported globally, it noted.
With the startup of the Trans Mountain expansion and LNG Canada in the past two years, Canada exported 6.5 million barrels of oil equivalent per day of hydrocarbons in 2025 to more than 100 countries, with the U.S. receiving nearly 91 per cent of the total.
“We need to increase the rate of growth to other markets faster than the rate of growth to the U.S.,” said Carlo Dade, director of international policy at the University of Calgary’s School of Public Policy. He emphasized the need for diversification while acknowledging that the U.S. remains a critical customer.
Industry and Government Alignment
The meeting in Ottawa underscored a unified approach between the energy industry and the federal government. Both sides recognize the importance of maintaining strong energy trade ties with the United States while pursuing opportunities elsewhere. The CUSMA renegotiation is seen as a pivotal moment to secure the integrated energy relationship.
Economic Significance
The CER report highlights that energy exports to the U.S. are a cornerstone of Canada’s economy. With $158 billion in sales last year, the sector supports thousands of jobs and contributes significantly to national GDP. The diversification strategy aims to reduce reliance on a single market, but the U.S. will remain the primary customer for the foreseeable future.
Gitane De Silva, founder and president of GDStrategic, participated in a panel discussion at the Calgary Economic Development 2026 Report to the Community, where these themes were explored. She noted that while new markets are emerging, the U.S. market’s proximity and existing infrastructure make it irreplaceable in the short term.
As the trade talks proceed, Canadian energy leaders are advocating for policies that protect current access while fostering growth in Asia and Europe. The balance between diversification and maintaining the U.S. relationship will be a central challenge in the coming years.
