As the world grapples with balancing economic growth, energy security, and environmental responsibility, Canadian oil and natural gas offer a strategically advantageous solution. Global demand for all forms of energy continues to rise – especially in developing economies like India and China – and Canada, a leading oil and natural gas producer, can provide much-needed stability and abundance in energy supply.
Canada’s commitment to socially and environmentally responsible energy production sets it apart from most other major producers and exporters. Whether it’s committing to progress on net zero emissions by 2050, advancing economic reconciliation with Indigenous communities, or developing emissions abatement systems like carbon capture and storage, Canada’s oil and natural gas sector leads by example in a world where stable, reliable and responsible energy sources are in dire need.
Here are five huge reasons why the world needs MORE Canadian energy – not less, like some environmentalists and non-governmental organizations would have you believe. Also see:
1. Meeting Increasing Global Demand
According to the International Energy Agency (IEA), global oil demand will continue to grow for many years to come and is currently at an all-time high.1 Furthermore, global liquefied natural gas (LNG) demand is projected to grow 76% by 2040, 3 while natural gas altogether is expected to grow 20% by 2050. 4
With economies finally recovering from the COVID-19 pandemic and its effect on global energy demand, increased consumption from emerging markets like China and India will drive the need for more traditional oil and natural gas supplies.1
Canada, being one of the few major democratic oil producers worldwide, can help meet growing demand responsibly, thereby playing a part in keeping global economies running while preventing potentially disastrous supply shortages.
2. Enhancing Global Energy Security
Oil and natural gas are pivotal resources in global energy and manufacturing systems, underpinning everything from plastics to fertilizers to transportation to electricity. Global energy shortages in recent years show how valuable stable and reliable energy supply sources are.
Canada’s oil and natural gas production contributes to global energy security by offering a stable and secure source of energy supply.
The continued responsible development of Canada’s substantial petroleum reserves can ensure steady global supplies and cushion possible supply disruptions in other parts of the world.1
3. Supporting Environmentally Responsible Energy Production
Canada is known for its commitment to environmentally responsible energy production. It ranks the highest among the world’s top oil and natural gas exporters on various social and environmental indices, showing why the country should be a go-to energy source.
Additionally, Canadian oil and gas producers operate under strict regulatory regimes that ensure transparency and uphold world-class protections for workers and the environment. These standards help significantly reduce any social and environmental impacts associated with energy production and make Canada a sustainable choice for oil and natural gas supply on global markets.2
4. Facilitating Transition to Lower Carbon Energy
Canadian natural gas is cleaner than coal and can support the transition to lower-carbon energy systems worldwide. When used, natural gas releases half as much carbon dioxide (CO2) as coal, making it a crucial resource in reducing global greenhouse gas (GHG) emissions.
Today, the most significant contribution Canada can make to global climate action is to develop its low-emission LNG export facilities and displace coal-fired power plants abroad. If Canada could replace just 20% of Asia’s coal-fired power plants with natural gas, it could reduce global GHGs equivalent to that of Canada’s annual emissions according to a report by IHS Markit.2
5. Benefiting Indigenous Communities
Energy projects in Canada often involve First Nations communities through ownership, partnership and mutual benefit agreements. Such opportunities are critical for economic growth, employment, and self-sustainability in these often remote communities.
For instance, a group of First Nations holds a 10% equity stake in Canada’s Coastal Gaslink pipeline project. Also, the Haisla are developing the Cedar LNG, the largest First Nations owned infrastructure project in Canada. These partnerships demonstrate Canada’s commitment to social responsibility and inclusive growth.2
The responsible development of energy resources on Indigenous lands is helping usher in economic reconciliation with countless First Nations, providing own-source revenues and opportunities for self-determination absent of Canadian government handouts.
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SOURCES:
1 – International Energy Agency. (2022 October). World Energy Outlook 2022. [Web page]. Retrieved from https://www.iea.org/reports/world-energy-outlook-2022. Date Accessed: September 2023.
2 – Miller, E. (2023 April). The world needs more Canadian natural gas. Financial Post. Retrieved from https://financialpost.com/commodities/energy/oil-gas/why-world-needs-more-canadian-natural-gas. Date Accessed: September 2023.
3 – Shell (n.d.). LNG Outlook 2023. [Shell]. Retrieved from https://www.shell.com/energy-and-innovation/natural-gas/liquefied-natural-gas-lng/lng-outlook-2023.html. Date Accessed: September 2023.
4 – Exxon Mobil Corporation. (n.d.). Global Outlook. [ExxonMobil]. Retrieved from https://corporate.exxonmobil.com/what-we-do/energy-supply/global-outlook. Date Accessed: September 2023.
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