Oil and Gas in the Canadian Federation

This paper provides an overview of key governance issues of relevance to the upstream oil and gas industry in Canada. The focus is on implications of Canada’s constitutional organization as a federation. Regulatory structures and provisions are described, as are revenue-sharing arrangements. Challenges for macro-economic management and for the environmental regulation of activities relating to oil and gas exploration, development, and production are highlighted. Implications of the evolving understanding of the rights of Canada’s aboriginal peoples are discussed. Special attention is paid to issues of importance to the federation as a whole and to the potential for the emergence of inter-governmental tensions and conflicts.