The United States is Canada's major trade market for energy products and services.
Provincial regulation of oil and natural gas activities, pipelines, and distribution systems is administered by provincial utility boards.
The producing provinces impose royalties and taxes on oil and natural gas production; provide drilling incentives; and grant permits and licenses to construct and operate facilities.
Provincial governments have jurisdiction over the exploration, development, conservation, and management of non-renewable resources, as well as the generation and production of electricity.
Federal jurisdiction in energy is primarily concerned with regulation of inter-provincial and international trade and commerce, and the management of non-renewable resources on federal lands.
The National Energy Board (NEB) is an independent federal regulatory agency that regulates the Canadian energy industry.
The NEB was created in 1959 and reports through the Minister of Natural Resources to the Parliament of Canada.To date, two provinces (Alberta and Ontario) have initiated retail competition.Its primary responsibilities include: In 1985, the federal government and the provincial governments in Alberta, British Columbia and Saskatchewan agreed to deregulate the prices of crude oil and natural gas.Offshore oil Atlantic Canada is administered under joint federal and provincial responsibility in Nova Scotia and Newfoundland and Labrador.The consuming provinces regulate distribution systems and oversee the retail price of natural gas to consumers.The key regulations with respect to the wholesale and retail electricity competition are at the provincial level.