Politics · Canada · 5 hrs ago
Ottawa weighs lifting Western Arctic offshore oil and gas moratorium
Canada is considering lifting its ban on offshore oil and gas exploration in the Western Arctic, but has not made a decision.
The moratorium was introduced in 2016 by then-prime minister Justin Trudeau and U.S. president Barack Obama to protect fragile marine ecosystems from oil spills.
The Northwest Territories and Nunavut have urged Ottawa to reconsider the policy, partly to gain more control over natural resources in the North.
In 2023, Ottawa, the Northwest Territories, Yukon and the Inuvialuit Regional Corporation agreed on a system for sharing decisions and revenue if the ban ends.
A 2024 review projected jobs and economic gains, but also warned that development could damage habitats and increase risks to wildlife.
The current moratorium is due to expire in 2028, and Ottawa reviews it every five years.
Ottawa is considering lifting its moratorium on offshore oil and gas exploration in the Western Arctic.
The federal budget allocated $1-million in 2027-28 and $3-million the following year for Arctic offshore oil and gas oversight.
The Northwest Territories and Nunavut have urged Ottawa to revisit the policy, which is due to expire in 2028.
Territorial and Inuvialuit governments have prepared a co-management and revenue-sharing agreement in case the moratorium is lifted.
A 2024 review projected economic gains from offshore development but also warned of habitat loss and increased mortality risks for wildlife.
- Who
- The federal government is considering the change; the Northwest Territories, Nunavut and Inuvialuit Regional Corporation have called for the policy to be revisited.
- What
- Ottawa is weighing whether to lift the Western Arctic offshore oil and gas exploration moratorium.
- When
- The moratorium is due to expire in 2028. The budget setting out new oversight funding was released the week before November 10, 2026.
- Where
- The Western Arctic, including the Beaufort Sea region.
- Why
- The Northwest Territories and Nunavut want a greater role in decisions about northern natural resources. The moratorium was imposed to protect fragile northern ecosystems from oil spill risks.
Western Arctic development advocates
Moratorium supporters
Policy
Western Arctic development advocates
The Northwest Territories and Nunavut have urged Ottawa to revisit the moratorium, and the Northwest Territories says lifting it could advance northern self-governance.
Moratorium supporters
The moratorium was imposed to protect fragile northern ecosystems from the risk of oil spills.
Potential effects
Western Arctic development advocates
A 2024 review projected $148-million in GDP and nearly 900 full-time jobs from offshore development in the Beaufort Sea region.
Moratorium supporters
The same review said development scenarios could cause habitat loss and increase mortality risks for fish, marine mammals, polar bears and barren-ground caribou.
Prime Minister Justin Trudeau and U.S. President Barack Obama imposed the Arctic offshore oil and gas moratorium.
The Northwest Territories, Yukon, Inuvialuit Regional Corporation and Ottawa signed the Western Arctic-Tariuq Accord, establishing a co-management and revenue-sharing regime that would take effect if the moratorium were lifted.
A six-member committee published a review projecting economic gains and wildlife risks from offshore development in the Beaufort Sea region.
Ottawa allocated $1-million in 2027-28 and $3-million the following year for Arctic offshore oil and gas oversight, including consideration of lifting the moratorium.
The current moratorium is set to expire.
- Budget allocation, 2027-28
- $1-million for Arctic offshore oil and gas oversight
- Budget allocation, following year
- $3-million for Arctic offshore oil and gas oversight
- Accord
- Western Arctic-Tariuq Accord, signed in 2023
- Projected GDP
- $148-million from offshore development in the Beaufort Sea region
- Projected jobs
- Nearly 900 full-time jobs
- Moratorium expiry
- 2028
What people are saying
consideration of potentially lifting the current moratorium on Arctic offshore oil and gas exploration in the Western Arctic
This line in the budget is the biggest update I’ve had in a while
necessarily equate to immediate development of any one kind or another