(The Center Square) – Canada and Texas oil and natural gas partnerships are advancing energy security, with Canadian leaders visiting Texas over the past few days.
Last week, Pierre Poilievre, the leader of the Official Opposition of Canada and Conservative Party, met with Gov. Greg Abbott and Texas energy leaders. This week, Canadian leaders met with Trump administration officials in Houston.
Poilievre joined Abbott to discuss strengthening energy, trade relations and commerce and the need for continued Canada-Texas energy industry partnerships.
Canada is the third-largest source country for total foreign direct investment projects in Texas. Over the past decade, Canadian companies have invested more than $11.5 billion across more than 150 economic development projects in Texas, creating more than 15,500 jobs, according to the governor’s office. Last year, Canada was Texas’ second-largest export destination, accounting for more than $34.5 billion in exports and $69 billion in total trade between the Texas and Canadian economies.
Poilievre championed Canadian businesses and advocated for more trade between Texas and Canada, the governor’s office said. Abbott highlighted how tax incentives, Texas’ skilled workforce and business friendly regulatory environment continue to keep Texas a top destination of business relocations and headquarter expansions.
Poilievre and other Canadian leaders also met with officials at the Texas Railroad Commission, the agency that regulates the oil and natural gas industry in Texas.
“As a native of the Canadian oil and gas producing province of Alberta, Leader Poilievre understands that energy security and common-sense regulatory policies serve as the foundation of a strong economy,” RRC Chairman Jim Wright said. “The Railroad Commission of Texas has a long and storied history prioritizing common-sense, pro-growth energy policies and it was a pleasure to discuss the Commission’s outlook and approach with our northern neighbors.”
The RRC routinely hosts foreign delegations; last year, German, Argentinian and Canadian leaders met with RRC officials. The RRC also has a longstanding relationship with Canadian provinces, including collaboration through the Interstate Oil and Gas Compact Commission.
“Canadian energy is a huge part of the Texas economy, and it’s only going to be in more demand. Data centers for AI and the conflict overseas mean that there’s a screaming demand for the hundreds of years of proven natural gas and oil reserves in Canada. Importing Canadian oil and natural gas allows the United States to have the excess capacity to export energy to the world,” Jamie Tronnes, executive director at the Center for North American Prosperity and Security, told The Center Square.
“Canada’s main issue with exporting its own oil and natural gas is geography,” she said. Production largely occurs inland and to get Canadian energy to the market, pipelines are needed. One major pipeline, the Keystone XL pipeline, got the greenlight from the first Trump administration. Former President Joe Biden halted it, resulting in lawsuits.
However, while in Houston attending a major energy conference, CERAWeek, Canadian Minister of Energy and Natural Resources Tim Hodgson met with U.S. Interior Secretary Doug Burgum and Energy Secretary Chris Wright to discuss potentially reviving part of the pipeline. If completed, it could increase Canada’s crude exports to the U.S. by roughly 12%. Canada is also working to expand its oil exports from Alberta to the U.S. West Coast by expanding the Trans Mountain pipeline.
Texas and Alberta have a strong trade partnership. Roughly 133,000 Texas jobs are supported by trade with Alberta and Alberta is Texas’ third largest export market in Canada, according to the Alberta government.
Approximately 63% of U.S. crude oil imports are from Canada as was 82% of U.S. imported electricity in 2024, according to Natural Resources Canada.
Hodgson also met with industry leaders in Houston to discuss opportunities to enhance North American energy security and affordability, critical minerals trade, grid modernization and other issues. He also visited Texas’ Freeport Marine Terminal, a major crude oil export hub connected to Enbridge’s pipeline infrastructure. The pipeline allows Western Canadian heavy crude to be re-exported around the world through Texas.
Under the second Trump administration, “There’s a window to take advantage of the administration’s streamlining of the permitting process. The permitting system is not perfect, but the administration is encouraging the industry to move fast to meet upcoming demand,” Tronnes said.
She also said she believes “investors are interested in bringing more Canadian supply online. They know new pipelines are needed, particularly for natural gas. The issue for many looking to build new pipelines and tap new energy sources, however, is the tariffs and the uncertainty that they have brought to the market.”
Tariffs have increased costs on imported steel, aluminum and other materials needed for pipeline construction. Oil and natural gas trade between Canada and the U.S. are tariff free.
