An op-ed, short for “opposite the editorial page”, is a written prose piece, which expresses the opinion of an author usually not affiliated with the publication’s editorial board.
In some areas of the country, there already is a de facto energy corridor. Along Highway 1 in extreme southeast Manitoba, the TransCanada Highway, CPR mainline, and TC Energy Mainline, seen here, are within a few hundred metres of each other. Photo by Brian Zinchuk
2010 was an interesting year in Saskatchewan’s resource industry.
The oil patch was booming. Horizontal well drilling reached an all-time high, and total wells drilled hit their fourth highest total since 1982.
In the uranium sector, we experienced the fourth highest exploration and development expenditures since 1980. Uranium prices were growing, closing the year at $66 per pound and the market was building towards the $696 million purchase of Hathor Exploration by Rio Tinto, announced in 2011.
In the potash sector, BHP Billiton acquired Athabasca Potash for $341 million, marking the largest potash acquisition on record in Saskatchewan at the time.
What dominated headlines, however, was the federal government’s decision to block BHP Billiton’s $40 billion acquisition of PotashCorp, citing the net benefit to Canada provision under the Investment Canada Act. This would have been the largest corporate transaction in Canadian history, a record that would still stand today. PotashCorp later merged with Agrium in a $36 billion transaction.
- 0088 WBPC_2025_30SEC_PROMO0088 WBPC_2025_30SEC_PROMO
- 0087 Lori Carr Coal Expansion0087 Lori Carr Coal Expansion
- 0086 Sask Gov Oil and Gas Incentive Programs0086 Sask Gov Oil and Gas Incentive Programs
- 0085 Turnbull snow removal call office0085 Turnbull snow removal call office
- 0084 EMP Metals Pipeline Online0084 EMP Metals Pipeline Online
- 0077 Caprice Resources Stand Up For Free Speech0077 Caprice Resources Stand Up For Free Speech
- 0076 Latus only0076 Latus only
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0055 Smart Power Be Smart with your Power office0055 Smart Power Be Smart with your Power office
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0041 DEEP Since 2018 now we are going to build0041 DEEP Since 2018 now we are going to build
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0021 OSY Rentals S8 Promo
- 0018 IWS Hiring Royal Summer
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0011
- 0006 JK Junior
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001
The Net Benefit Test: How It Was Applied in 2010
The federal government’s decision to veto the PotashCorp sale rested on six key factors:
- Strategic national interest in potash.
- Economic impact on Saskatchewan.
- Risk to jobs and investment commitments.
- Concerns over global pricing power.
- Strong political and public opposition.
- Lack of a clear, long-term benefit to Canada.
Rightly or wrongly, the federal government determined that the deal failed this test and acted to block it.
Fast Forward 15 Years: The Energy Sector Faces Similar Questions
Today, Canada faces a similar challenge. The pressures of trade disputes with our largest trading partner—the United States—highlight the need for market diversification. And what is Canada’s largest export? Oil and gas.
Over the past decade, Canada has actively stalled or halted the development of pipeline infrastructure, preventing western provinces from accessing tidewater on two of our three coasts. These cancellations were driven not by economic rationale but by ideological and political considerations.
- 0088 WBPC_2025_30SEC_PROMO0088 WBPC_2025_30SEC_PROMO
- 0087 Lori Carr Coal Expansion0087 Lori Carr Coal Expansion
- 0086 Sask Gov Oil and Gas Incentive Programs0086 Sask Gov Oil and Gas Incentive Programs
- 0085 Turnbull snow removal call office0085 Turnbull snow removal call office
- 0084 EMP Metals Pipeline Online0084 EMP Metals Pipeline Online
- 0077 Caprice Resources Stand Up For Free Speech0077 Caprice Resources Stand Up For Free Speech
- 0076 Latus only0076 Latus only
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0055 Smart Power Be Smart with your Power office0055 Smart Power Be Smart with your Power office
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0041 DEEP Since 2018 now we are going to build0041 DEEP Since 2018 now we are going to build
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0021 OSY Rentals S8 Promo
- 0018 IWS Hiring Royal Summer
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0011
- 0006 JK Junior
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001
Key Pipeline Projects That Were Blocked or Stalled
Since 2016, four major projects have been cancelled and one required crown ownership to be completed.
- Keystone XL – Approved and rejected multiple times by U.S. administrations. While Canadian leadership had limited control in that decision, stronger advocacy could have improved the outcome.
- Mackenzie Valley Pipeline – Designed to move natural gas from the Mackenzie Delta to customers in the United States and Canada, this project was abandoned due to ever-changing regulations and escalating costs.
- Northern Gateway – Designed to provide a critical link from the oil sands of Alberta to tidewater, this project was canceled for political reasons despite its potential to provide access to Asian markets.
- Trans Mountain Expansion – Not technically rejected but effectively forced into public ownership after regulatory hurdles made private investment untenable. A project once budgeted at $5.4 billion ended up ballooning under government control, costing taxpayers $34 billion by 2024.
- Energy East Pipeline – Intended to transport Alberta and Saskatchewan oil producers to eastern Canada refineries, reducing reliance on Middle Eastern imports. This project was due to, and I quote, “existing and likely future delays resulting from the regulatory process, the associated cost implications, and the increasingly challenging issues and obstacles”. In short, the regulatory process was so burdensome that the proponent walked away.
A Clear Need for an Energy Transportation Corridor
With growing trade tensions and uncertainty in U.S. relations, Canada must diversify its energy trading partners. Given the political resistance to pipelines in both Quebec and British Columbia, a federal transportation corridor—governed by federal decree—would allow for the movement of oil and gas to global markets.
Wouldn’t it be interesting to apply the Investment Canada Act’s net benefit test used in the BHP/Potash Corp. proposal here?
Applying the Net Benefit Test to Canada’s Energy Crisis
- Strategic National Interest in Oil and Gas
Oil and gas is the engine of the Canadian economy, despite political efforts to constrain production. Access to global markets and having the option to sell Brent crude pricing—instead of discounted Western Canadian Select—would provide billions in revenue. - Economic Impact on the Provinces
Increased oil exports would boost federal tax revenues and provincial royalties, directly benefiting the chronically underfund healthcare, education, and infrastructure portfolios. There is clearly a net positive economic impact on the producing provinces, which include British Columbia, Alberta, Saskatchewan, Manitoba, and to a lesser extent, Newfoundland and Labrador. For those of you keeping score at home, that is fully 50% of the Canadian provinces. - Risks to Jobs and Investment Commitments
The job creation from constructing a national energy corridor would be massive, generating tens of thousands of well-paying jobs. This would be one of the largest infrastructure projects in recent Canadian history. It would provide local benefit to every jurisdiction in its path, from construction to hospitality workers. It would also go a long way to reverse the capital flight that has plagued Canada’s energy sector since 2015.It would be a strong signal that Canada is no longer embarrassed to hold the third largest oil reserves in the world, and it is ready to take its place at the energy table. - Concerns Over Global Pricing Power
Unlike the potash case, where global pricing power was a risk, energy independence would increase Canada’s leverage in global markets. A secure export corridor would allow Canadian producers to command world prices rather than accept discounts. - Political and Public Opposition
Quebec remains a major obstacle, citing a lack of “social license” while simultaneously demanding a Team Canada approach to U.S. trade disputes. The contradiction is glaring. There will certainly be opposition from all other jurisdictions as well, most notably British Columbia.The most efficient way to determine actual opposition to securing Canadian energy super power status would likely be a federal referendum laying out the alternatives. Such a vote would have to lay out the benefits of such a project (economic and social) as well as the perceived negatives.When you weigh the economic benefits to all jurisdictions, including the securing of the capital to fund equalization payments, I would be optimistic that such a vote would pass.
- Lack of a Clear Net Benefit to Canada?
There is no such lack—the benefits are overwhelming. Secure energy exports would drive economic growth, generate government revenue, and reduce reliance on a single trading partner. Moreover, Canada’s environmental and human rights standards far exceed those of many oil-producing nations, making Canadian energy the ethical choice.
The ability to secure additional infrastructure on the coastlines, such as additional LNG facilities, would serve to provide energy infrastructure to jurisdictions currently reliant on coal and other environmentally detrimental feedstocks. It would also secure Europe’s supply of LNG and reduce or eliminate reliance on fuel from Russia and other less secure trading partners. These two factors provide a clear net benefit to the globe, not just Canada.
The Path Forward: A Federal Energy Corridor
Unlike in 2010, the Investment Canada Act cannot be invoked to create an energy corridor. However, a federally governed transportation corridor—protected from provincial obstruction—should be a key policy initiative in the next federal election.
If Canada does not act now, we will remain hostage to U.S. trade policy, forfeiting significant economic opportunity while continuing to import oil from foreign regimes with far worse environmental and human rights records.
An energy corridor is often envisioned to include not only pipelines, but power transmission, as seen here from Highway 1 in southeast Manitoba. Photo by Brian Zinchuk
While this is not a solution to our current trade issues, as the development of such an energy corridor would take years to complete, it certainly puts the world on notice that Canada intends to be a global player in energy.
The current trade environment is a wake-up call for all Canadians. Regardless of what you think of President Trump, he has done Canada a favor by highlighting the flaws in our Canadian trade strategy and provided impetus for us to re-build it.
As Winston Churchill once said, “Never let a good crisis go to waste.” Canada’s current trade tensions present a rare opportunity to reshape our energy strategy. We must seize it.
Andrew Davidson is a Saskatoon-based resource executive.
- 0088 WBPC_2025_30SEC_PROMO0088 WBPC_2025_30SEC_PROMO
- 0087 Lori Carr Coal Expansion0087 Lori Carr Coal Expansion
- 0086 Sask Gov Oil and Gas Incentive Programs0086 Sask Gov Oil and Gas Incentive Programs
- 0085 Turnbull snow removal call office0085 Turnbull snow removal call office
- 0084 EMP Metals Pipeline Online0084 EMP Metals Pipeline Online
- 0077 Caprice Resources Stand Up For Free Speech0077 Caprice Resources Stand Up For Free Speech
- 0076 Latus only0076 Latus only
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0055 Smart Power Be Smart with your Power office0055 Smart Power Be Smart with your Power office
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0041 DEEP Since 2018 now we are going to build0041 DEEP Since 2018 now we are going to build
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0021 OSY Rentals S8 Promo
- 0018 IWS Hiring Royal Summer
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0011
- 0006 JK Junior
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001