If the Canadian and American governments want to seriously tackle inflation, the most sensible thing they could do is negotiate a comprehensive agreement to ensure energy independence for North America.
Bizarrely, the U.S. now seeks relief from Saudi Arabia even though President Joe Biden labelled the Kingdom a “pariah” during the 2020 campaign. His welcome-mat may not be royal. Similar overtures are being made to Venezuela and even Iran, when the most obvious option for access to more oil and gas lies on America’s northern border.
Biden is releasing millions of barrels of oil from the Strategic Petroleum Reserve, roughly equivalent to what the U.S. would be receiving daily from Canada had Biden not abruptly terminated the Keystone XL pipeline on his first day in office.
He is urging domestic producers to drill for more oil and gas but, stifled by regulatory restraints and limited capital, and demonized by Biden’s own administration, few are acting on his request. The U.S. does plan new natural gas infrastructure for exports.