Canada’s Energy Opportunities:  Harness it or live with the consequences

Energy is the number one commodity on the planet. Full stop. And Canada sits atop a buried treasure trove of it.

With the third-largest proven oil reserves in the world—a staggering 171.0 billion barrels, of which 166.3 billion barrels are nestled in Alberta’s oil sands—Canada holds a global powerhouse position. Add to that the fact that Canada is the fifth-largest natural gas producer, pumping out 17.9 billion cubic feet per day in 2023, and the picture becomes clear: we have the resources, but we’ve failed to unlock the potential.

By comparison, Norway—a country of just 5.5 million people—has shown the world how it’s done. With the creation of the Norwegian Petroleum Directorate, primary government ownership in projects, and the $1.6 trillion Norwegian Sovereign Wealth Fund, Norway transformed a finite resource into generational prosperity.

Meanwhile, in Canada? We’ve had fragmented policies, provincial-federal infighting, and a dangerous underestimation of what a national energy strategy could deliver.

The Case for Reform: Where Canada Missed the Mark

Let’s be blunt: Canada hasn’t capitalized on our oil and gas riches the way the Norwegians have. And that failure stems from a lack of leadership, a lack of vision, and perhaps most critically, a lack of national profitability protocols.

Norway chose nation-building. We chose bureaucracy.

It’s time to change that. It’s time to model our energy future after what’s already proven successful—and elevate Newfoundland and Alberta as the investment-ready energy titans they are destined to be.

Why Norway’s Model Works—and How Canada Can Adapt It

Here are the key pillars of Norway’s model and how we can apply them to Canada:

1. Establish a Canadian Petroleum Directorate

• A national, apolitical, expert-led body that governs exploration, resource management, and ensures full transparency.

• It should oversee both onshore oil and gas plays such as Alberta and offshore oil and gas development in Atlantic Canada.

• We need a portfolio of Canada-Owned energy assets, just like they did in Norway. 

2. Create a Canadian Energy Sovereign Wealth Fund

• With oil exploration and development comes Canada’s profitability. We can then build a Canada Energy Sovereign Wealth Fund. Norway’s fund was seeded by oil revenues and now funds education, healthcare, infrastructure, and more.

• Canada could do the same—using royalties and equity shares to build a Canadian Trust Fund that invests in future generations and diversifies the economy beyond hydrocarbons.

3. Shift to Equity Participation, Not Just Royalties

• In Norway, the state holds equity stakes in nearly all oil and gas projects and has a mass exploration and drilling plan.. That makes good business sense.

  In the North Sea there are  over 20,000 wells drilled, in contrast Atlantic Canada has just over 300 exploration wells drilled. What would happen if we drilled another 500 wells offshore Newfoundland? 

• Canada—especially Newfoundland—can become an investment magnet by offering Zero-Risk Drilling:

  • No land sales – Exploration must be low barrier-to-entry in order to create prosperous oil plays. We need exploration companies to come in, explore and drill. The more wells the higher probability of finding oil and gas. That has to the number one goal – increase the probability of striking oil.

  • Government owns 60% of the project. As with Norway, where there is risk there is reward, however this is more of a visionary play as we know the oil and gas are there, it’s just a numbers game of oil wells drilled to oil wells found.

  • Oil companies get low-risk entry with technical control and investment return. This scenario is a win-win for all stakeholders.

  • In the case of Newfoundland offshore oil and gas industry, Newfoundland gets long-term wealth, control, and leverage.

Newfoundland Offshore: The North Sea of the West

The parallels between Newfoundland’s offshore and Norway’s North Sea are impossible to ignore:

• Harsh weather

• Deep water and frontier exploration

• An already developed infrastructure ready to build further. But we need the right economic profitability plan that brings home

But here’s the difference: Norway drilled hundreds of exploratory wells before making billion-barrel discoveries. Newfoundland needs 10 times more wells drilled just to understand its full reserve potential.

Policy Recommendation:

Open the gates for global oil companies, offering low-risk, high-reward partnerships under a shared equity model. Newfoundland keeps 60%, companies operate and earn a return, and together, they unlock the basin’s true value. 

Alberta: The Economic Engine with a Wealth Management Problem

Let’s not forget: Alberta is the economic workhorse of this country. But even with its massive reserves, it has suffered from boom-and-bust cycles, political isolation, and lack of federal reinvestment.

What Alberta Needs:

• Inclusion in a national energy strategy that prioritizes profitability and long-term wealth creation.

• Provincial revenue sharing with a federal sovereign fund, reducing volatility and increasing national cohesion.

• Federal backing for global pipelines and LNG infrastructure to help Alberta deliver energy across the country and then to the world.

What Investors Want: Stability, Simplicity, Profitability

Global investors are looking for:

• Transparent regulations

• Stable political environments

• Clear return on investment

With the right framework, Canada can be the most attractive energy investment destination on Earth. Here’s how:

• Offer consistent fiscal regimes across provinces.

• Establish co-investment models with private partners.

• Prioritize public infrastructure to support energy development—ports, roads, pipelines, and processing.

The Future Is Ours—If We Choose It

Norway has proven that with vision and discipline, natural resources can build sovereign wealth that lasts for generations. Canada has the geological fortune. What we’ve lacked—until now—is the policy backbone to make it happen.

It’s time for Canada to act like an energy superpower.

That starts by:

• Making Newfoundland the next frontier of offshore equity energy projects.

• Letting Alberta be the beating heart of a national prosperity engine.

• And building a Sovereign Energy Fund that benefits all Canadians—today and tomorrow.

We don’t need to reinvent the wheel. We just need to turn it in the right direction.