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The Canadian government plans to ratify the Protocol to the Convention on Climate Change, 1997, in Dec 2002. Canadian government officials are concerned about the economic impacts of the ratification.

Murphy Oil Corp may take a 15% equity stake in the troubled Hibernia offshore oil development project in Newfoundland. The Canadian government announced that it has resumed negotiations with Murphy, after attempts to bring Texaco Inc into the project consortium failed. The C$5.2-billion project is considered very important to Canada's energy industry and particularly to Newfoundland's economy, but the federal government is looking for assurances of profit to Canada before it gives the go-ahead. Other consortium partners are Mobil Oil Canada Ltd, Petro-Canada and Chevron Canada Resources Ltd.

The development of natural gas in Canada's Yukon could expand the economy in the region.

Canada's Natural Resources Minister, Anne McLellan, expressed her support for Petro-Canada's planned strategic alliance with Norsk Hydro AS and said that the government welcomes such deals, which can help the country develop its offshore gas and oil supplies. She added that Canada's economic expansion depends on increased foreign investment. Norsk Hydro's primary interest is in the Terra Nova development, according to Tore Tovund, who heads the Norwegian company's exploration and production operations.

The Canadian petroleum industry expressed fears that the Canadian Liberal government may include a carbon tax as part of its first budget. The fears were prompted by Natural Resources Minister McLellan's refusal to rule out such a tax. Petroleum industry sources are concerned that the Liberal government may be planning to fulfill a 1993 election promise to lower 1988 carbon dioxide emission levels by 20% by 2005.