Trade tensions between the two countries have highlighted the need for Canada to diversify its exports, but that need does not take away from the fact the two countries’ energy systems are inextricably linked, McKenzie told an energy conference in Calgary, Alberta.

Canada relies on U.S. refiners to buy the vast majority of its exported oil, while landlocked U.S. refineries in the Midwest are configured to process the grade of crude that Canada produces, the CEO said.

“The reality is we are hardwired into the U.S. system,” and Canada’s new government needs to recognize Canada’s co-dependence with the U.S. and seek to improve that relationship, McKenzie said.

The CEO also said the energy sector would not want the Carney government to pick winners and losers by deciding which projects to fast-track, instead wanting to see broad regulatory reform that will remove barriers to investing in oil and gas projects.

MacKenzie also confirmed Cenovus is in the process of ramping up production at its Christina Lake oil sands site in Alberta after shutting output due to wildfire risk early this month.