North to Alaska.
The Trump administration is ramping up competition with Canada’s energy sector by opening vast new oil and gas reserves in The Last Frontier and advancing a major liquefied natural gas (LNG) export pipeline — a move that could further sideline Alberta’s oil industry, already struggling under trade barriers.
On Friday, US Interior Secretary Doug Burgum announced plans to expand leasing in the National Petroleum Reserve and the Arctic National Wildlife Refuge (ANWR), as well as lift restrictions on the proposed Alaska LNG Pipeline — a project designed to export natural gas from the state’s vast reserves to global markets.
The move is aimed to strengthen the US’ energy position on the world stage while reinforcing protectionist policies that make it harder for Alberta’s oil industry to compete.
“It’s time for the US to embrace Alaska’s abundant and largely untapped resources as a pathway to prosperity for the nation, including Alaskans,” said Burgum said in a statement.
“Interior is committed to recognizing the central role the State of Alaska plays in meeting our nation’s energy needs, while providing tremendous economic opportunity for Alaskans.”
The US rush to open Alaska comes as Canadian LNG developers on the East Coast fight for a foothold in the growing global market. While projects like Goldboro LNG in Nova Scotia and Énergie Saguenay in Quebec have faced delays, regulatory hurdles and opposition from environmental groups, Alaska’s LNG pipeline is now being fast-tracked.
With Washington clearing the way for Arctic energy development, Canada’s LNG industry could struggle to compete for key European and Asian buyers.
“Alaska’s energy potential has been locked away for too long,” Burgum continued. “It’s time for the US to embrace its untapped resources and secure energy dominance.”
Canada, meanwhile, has faced pipeline cancellations, regulatory delays and uncertainty that have slowed energy exports.
While the LNG Canada project in British Columbia is moving forward, the East Coast LNG sector remains underdeveloped — allowing the US to capture market share Canada could have claimed.
While the US opens new oilfields in Alaska, Alberta’s landlocked crude continues to face barriers, including American tariffs and restrictions on cross-border pipeline capacity. Washington has kept trade policies that limit the export of Alberta’s oil while favoring US domestic production.
“The irony is striking,” said a Canadian energy analyst. “Alberta sits on some of the world’s largest oil reserves, but it’s being shut out while the US fast-tracks its own energy development.”
Canada’s oil and gas sector has already been hit hard by the cancellation of the Keystone XL pipeline and restrictions on new pipeline construction. With the Trump accelerating its own oil production, Alberta could see even greater difficulty in finding international buyers for its crude.
Burgum’s announcement has drawn criticism from environmental groups, who argue that Arctic drilling threatens fragile ecosystems. However, some indigenous groups in Alaska have welcomed the decision, citing economic opportunities.
Meanwhile, in Canada, Alberta’s energy leaders have urged Ottawa to take a more aggressive stance in defending the Canadian industry.
“If the Americans don’t want our products, the rest of the world does,”
Alberta Premier Danielle Smith
With LNG exports ramping up in Alaska and Alberta’s oil facing mounting trade barriers, Canada risks falling further behind in the global energy race.
While Alberta is reluctant to amp up Trump’s trade war by using oil exports as a retalitory weapon, Alberta Premier Danielle Smith is also in favour of expanding Canadian markets even if it comes at the US president’s behest.
“If the Americans don’t want our products, the rest of the world does,” she said in an interview with CNBC earlier this month.
