The damage Justin Trudeau’s government has done to the oil and gas sector means Canada needs a Conservative government to bring investment to the country, according to an economist.
Economist David Doyle of the Australia-based Macquarie Group believes that the energy sector would see an immediate upswing if the Conservatives get elected this fall.
“The current Liberal government is widely viewed as having not been the most favourable government for the energy sector,” Doyle told BNN Bloomberg.
“I think if Canada shifted a little bit to the right and we had a Conservative government, it might lead to some strength coming through for the energy sector.”
Because Canada is so reliant on the energy sector, a boost would see immediate benefits throughout the broader Canadian economy.
Much of the upswing, Doyle said, would come from an increase in foreign investment that he predicts a government led by Andrew Scheer would bring.
“I think foreign investors, in particular, would start to look at the space more closely if you did end up with a Conservative government in October.”
With a sputtering energy sector, bearish forecasts have become commonplace for Canadians, as well as those in the investment world.
“We find people to be incredibly pessimistic about the outlook. Basically, the sector is being – for lack of a better term – left for dead,” Doyle said.
One recent poll suggests that only 22 per cent of Canadians believe the country is doing better under the Trudeau government, whereas over twice as many believe it’s doing worse.
When ranking leaders, Scheer scored the best in eight out of 12 key sectors, including taxes, economic growth and employment.
While the Trudeau government has forced a carbon tax on Canadians and passed bill C-69 which stifles all new pipeline projects, Scheer has promised to reverse both these decisions.
With many in the energy industry feeling that the current government has abandoned them, many energy workers will be hoping Canadians elect pro-development politicians this fall.