2018 Economic Report Series Global economies are growing CANADA’S ROLE IN THE WORLD’S FUTURE ENERGY MIX and the world will need more energy in all forms, including oil and natural gas.
Canada has an opportunity to ensure this demand is met by responsibly produced fuels.
This report outlines the projected future global energy mix based on the International Energy Agency’s (IEA) New Policies Scenario (NPS) from today to 2040. Given these projections for energy demand, the report identi es Canada’s potential role in the world’s future energy mix and de nes a vision for Canadian oil and natural gas within the context of future global energy demand.
Forthcoming reports will examine the role of innovation and technology in reducing greenhouse gas emissions and improving other aspects of environmental performance; the urgent need for infrastructure that facilitates market access for Canadian oil and natural gas; scal and economic policies; the social bene ts arising from the oil and natural gas industry; and an overall summary with forward-looking recommendations.
Book two. CAPP.CA 2018-9303 Canada can become Total energy demand is expected to increase by 30% the world’s2018 Economic Report Seriesenergy supplierGlobal of economies choice. are growing from today to 2040. CANADA’S ROLE IN THE WORLD’S FUTURE ENERGY MIX Canada can Growth in the Global Energy Mix frandom 2016 the-2040 world will need more Canada’s role Source: IEA 2017 World Energy Outlook, New Policies Scenario become the Canada has enormous oil and natural gas resources. We have an opportunity to meet growing global demand in an environmentally energy in all forms, including and socially responsible manner. But this can only be achieved if Canadian oil and natural gas remain competitive and are able to world’s energy 5,000 attract investment and spur innovation. OIL supplier of NATURAL GAS The Canadian Association of Petroleum Producers (CAPP) believes Canada’s oil and natural gas industry can and should become oil and natural gas. the world’s energy supplier of choice. We further believe that governments can play a key role in seizing this opportunity by putting COAL choice – competitive and supportive policies into place. 4,000 generating There is a clear and growing demand for oil and natural gas, especially in developing countries such as India, China and throughout economic Canada has an opportunity to Southeast Asia. Canada could serve these emerging markets with responsibly produced fuels that displace production from other
ALEN T less regulated sources. The Canadian oil and natural gas industry is implementing innovative technologies to improve efciency and bene ts 3,000 reduce environmental impacts, demonstrating what it takes to be a responsible energy developer. Through substantial investments in QUI V E GROWING POPULATION, GROWING ensure this demand is met by innovation and implementation of new technologies, Canada’s performance will continuously improve. across the OI L
ENERGY DEMAND F Canada can play a signicant role in meeting the world’s future energy demand. Through innovation and technology, Canada O country, and can leverage our leadership in environmental stewardship and responsible energy production to help address growing global BIOENERGY 2,000 responsibly produced fuels. The world’s population is Key ndings about the growth of carbon emissions. At the same time, ensuring a healthy oil and natural gas industry with access to global markets also minimizing ONNE S expected to exceed nine billion T global energy requirements include: ensures ongoing prosperity and economic benets across our country. by 2040. Over that same time NUCLEAR environmental • As the world’s population grows, total energy OTHER RENEWABLES However, Canada’s policies and environmental regulations must be developed in parallel with attracting investment, spurring period, as emerging economies demand will also increase.
MILLIO N innovation, growing jobs and maintaining economic benets across the country. At present this is not the case and Canada impacts at urbanize and industrialize, the 1,000 - A larger population, combined with global gross This report outlines the projected future HYDRO risks falling behind other global energy supply competitors. home and global middle class is expected domestic product (GDP) growth and an expanding global energy mix based on the International For example, with some notable exceptions such as Norway’s Statoil, the majority of global oil and natural gas reserves are to almost double. A larger middle class worldwide, means that by 2040 the around the Energy Agency’s (IEA) New Policies Scenario held by nationally owned companies that face little to no climate legislation and associated costs. If Canadian production is population, combined with rising world will consume substantially more energy 0 (NPS) from today to 2040. Given these constrained due to the cumulative effects of regulatory burden and lack of market access, global energy demand will simply
5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 0 0 0 0 0 0 0 gross domestic product and 0 0 0 0 0 0 0 1 than today. 1 1 1 1 1 1 3 3 3 3 3 3 3 2 2 2 2 2 2 2 3 3 3 3 3 3 world. projections for energy demand, the report 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 be met from other jurisdictions that have less stringent to no environmental policies. This is effectively a wealth transfer to 2 2 2 2 2 2 2 more disposable income, will 20 4 20 4 20 4 20 4 20 4 20 4 20 4 - The future energy mix will re ect industrialization identi es Canada’s potential role in the other countries with poorer environmental standards. drive the need for more energy and urbanization trends in emerging economies world’s future energy mix and de nes a vision from all sources: total energy as their per-capita energy intensity increases to Regarding speci c energy sources, forkey Canadian ndings oil and include: natural gas within the Therefore, CAPP recommends that: demand is expected to increase developed-economy levels. • Natural gas is expected to grow in both volume andcontext market of future share globalto become energy demand. • The federal government take a leadership role in de ning Canada’s vision for oil and natural gas that positions by 30 per cent from today to Canada as the supplier of choice to meet the world’s growing oil and natural gas needs. • Although there will be shifts in the overall global energy the world’s second-largest energy source overall. Forthcoming reports will examine the role of 2040. Although each fuel type’s mix, growing demand is expected to be met by all - The industrial sector will likely account for more than 40 per cent of - This vision should be supported through a co-ordinated effort with industry, provincial and territorial innovation and technology in reducing share in the total energy mix is available forms of energy. additional natural gas uses by 2040, as natural gas becomes essential governments, and individual Canadians to create an effective policy and regulatory environment that greenhouse gas emissions and improving likely to change, energy usage to the development of emerging economies. encourages investment in Canada’s oil and natural gas resources, ensuring those resources are produced the • Energy efciency is expected to moderate global other aspects of environmental performance; from all sources, including oil and Canadian way – with environmental and social responsibility. demand. The International Energy Agency (IEA) • The world energy mix is certainly changing, butthe oil urgentis expected need forto continueinfrastructure that natural gas, will increase. - This vision must include a focus on accessing world markets (particularly lower- to middle-income countries), estimates that the projected rise in global energy as the predominant energy source to at least 2040.facilitates market access for Canadian oil and a commitment to innovation, and global environmental stewardship. consumption by 2040 could more than double - The IEA estimates that oil will continue to have the naturallargest share gas; of scal any fueland source. economic policies; the without substantial expected improvements in social bene ts arising from the oil and natural - This vision must also seek action on the part of the federal government to undertake efforts that enhance - This continued high demand for oil will be driven largely by the transportation energy efciency. gas industry; and an overall summary with energy awareness and actively cultivate and grow support from Canadians for the responsible development of sector, including aviation and shipping, plus industrial and petrochemical forward-looking recommendations. Canada’s resources. uses. The IEA projects that oil will be a signicant energy source even - Finally, the vision must encourage governments to align costs associated with environmental policies in other with the rise of electric vehicles. “Canada will remain a crucial supplier of oil and gas for the global jurisdictions, to support industry competitiveness and technological advancements that allow for continued • Electricity generation is the primary use for energy sources such as nuclear, innovation in the sector. marketplace and the industry is making efforts to improve its hydro and renewables. While the market share of these sources for electricity The competitiveness of Canada’s oil and natural gas industry is at risk. Canada has the opportunity to responsibly environmental performance.” generation is expected to increase, government Booktargets andtwo. support policies meet growing global energy demand but the cumulative effect of policies and regulations are rapidly diminishing Fatih Birol, Executive Director, International Energy Agency, speaking at the Generation Energy Forum, Winnipeg, Manitoba, October 2017 remain the driving force behind much of this growth. Hydro is projected to CAPP.CA this opportunity by thwarting industry growth, competitiveness and market access. 2018-9303 remain the largest source of renewable-based power generation.
Canada can become Total energy demand is expected to increase by 30% the world’s energy supplier of choice. from today to 2040.
Canada can Growth in the Global Energy Mix from 2016-2040 Canada’s role Source: IEA 2017 World Energy Outlook, New Policies Scenario become the Canada has enormous oil and natural gas resources. We have an opportunity to meet growing global demand in an environmentally and socially responsible manner. But this can only be achieved if Canadian oil and natural gas remain competitive and are able to world’s energy 5,000 attract investment and spur innovation. OIL supplier of NATURAL GAS The Canadian Association of Petroleum Producers (CAPP) believes Canada’s oil and natural gas industry can and should become the world’s energy supplier of choice. We further believe that governments can play a key role in seizing this opportunity by putting COAL choice – competitive and supportive policies into place. 4,000 generating There is a clear and growing demand for oil and natural gas, especially in developing countries such as India, China and throughout economic Southeast Asia. Canada could serve these emerging markets with responsibly produced fuels that displace production from other
ALEN T less regulated sources. The Canadian oil and natural gas industry is implementing innovative technologies to improve ef ciency and bene ts 3,000 reduce environmental impacts, demonstrating what it takes to be a responsible energy developer. Through substantial investments in QUI V E GROWING POPULATION, GROWING innovation and implementation of new technologies, Canada’s performance will continuously improve. across the OI L
ENERGY DEMAND F Canada can play a signi cant role in meeting the world’s future energy demand. Through innovation and technology, Canada country, and O BIOENERGY can leverage our leadership in environmental stewardship and responsible energy production to help address growing global The world’s population is Key ndings about the growth of 2,000 carbon emissions. At the same time, ensuring a healthy oil and natural gas industry with access to global markets also
minimizing ONNE S
expected to exceed nine billion T global energy requirements include: ensures ongoing prosperity and economic bene ts across our country.
by 2040. Over that same time NUCLEAR environmental • As the world’s population grows, total energy OTHER RENEWABLES However, Canada’s policies and environmental regulations must be developed in parallel with attracting investment, spurring period, as emerging economies demand will also increase.
MILLIO N innovation, growing jobs and maintaining economic bene ts across the country. At present this is not the case and Canada impacts at urbanize and industrialize, the 1,000 - A larger population, combined with global gross HYDRO risks falling behind other global energy supply competitors. home and global middle class is expected domestic product (GDP) growth and an expanding For example, with some notable exceptions such as Norway’s Statoil, the majority of global oil and natural gas reserves are to almost double. A larger middle class worldwide, means that by 2040 the around the held by nationally owned companies that face little to no climate legislation and associated costs. If Canadian production is population, combined with rising world will consume substantially more energy 0 constrained due to the cumulative effects of regulatory burden and lack of market access, global energy demand will simply
5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 0 0 0 0 0 0 0 gross domestic product and 0 0 0 0 0 0 0 1 than today. 1 1 1 1 1 1 3 3 3 3 3 3 3 2 2 2 2 2 2 2 3 3 3 3 3 3 world. 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 be met from other jurisdictions that have less stringent to no environmental policies. This is effectively a wealth transfer to 2 2 2 2 2 2 2 more disposable income, will 20 4 20 4 20 4 20 4 20 4 20 4 20 4 - The future energy mix will reect industrialization other countries with poorer environmental standards. drive the need for more energy and urbanization trends in emerging economies from all sources: total energy as their per-capita energy intensity increases to Regarding speci c energy sources, key ndings include: Therefore, CAPP recommends that: demand is expected to increase developed-economy levels. • Natural gas is expected to grow in both volume and market share to become • The federal government take a leadership role in de ning Canada’s vision for oil and natural gas that positions by 30 per cent from today to Canada as the supplier of choice to meet the world’s growing oil and natural gas needs. • Although there will be shifts in the overall global energy the world’s second-largest energy source overall. 2040. Although each fuel type’s mix, growing demand is expected to be met by all - The industrial sector will likely account for more than 40 per cent of - This vision should be supported through a co-ordinated effort with industry, provincial and territorial share in the total energy mix is available forms of energy. additional natural gas uses by 2040, as natural gas becomes essential governments, and individual Canadians to create an effective policy and regulatory environment that likely to change, energy usage to the development of emerging economies. encourages investment in Canada’s oil and natural gas resources, ensuring those resources are produced the • Energy ef ciency is expected to moderate global from all sources, including oil and Canadian way – with environmental and social responsibility. demand. The International Energy Agency (IEA) • The world energy mix is certainly changing, but oil is expected to continue natural gas, will increase. - This vision must include a focus on accessing world markets (particularly lower- to middle-income countries), estimates that the projected rise in global energy as the predominant energy source to at least 2040. a commitment to innovation, and global environmental stewardship. consumption by 2040 could more than double - The IEA estimates that oil will continue to have the largest share of any fuel source. without substantial expected improvements in - This vision must also seek action on the part of the federal government to undertake efforts that enhance - This continued high demand for oil will be driven largely by the transportation energy ef ciency. energy awareness and actively cultivate and grow support from Canadians for the responsible development of sector, including aviation and shipping, plus industrial and petrochemical Canada’s resources. uses. The IEA projects that oil will be a signi cant energy source even - Finally, the vision must encourage governments to align costs associated with environmental policies in other with the rise of electric vehicles. “Canada will remain a crucial supplier of oil and gas for the global jurisdictions, to support industry competitiveness and technological advancements that allow for continued • Electricity generation is the primary use for energy sources such as nuclear, innovation in the sector. marketplace and the industry is making efforts to improve its hydro and renewables. While the market share of these sources for electricity The competitiveness of Canada’s oil and natural gas industry is at risk. Canada has the opportunity to responsibly environmental performance.” generation is expected to increase, government targets and support policies meet growing global energy demand but the cumulative effect of policies and regulations are rapidly diminishing Fatih Birol, Executive Director, International Energy Agency, speaking at the Generation Energy Forum, Winnipeg, Manitoba, October 2017 remain the driving force behind much of this growth. Hydro is projected to this opportunity by thwarting industry growth, competitiveness and market access. remain the largest source of renewable-based power generation.
Canada can become Total energy demand is expected to increase by 30% the world’s energy supplier of choice. from today to 2040.
Canada can Growth in the Global Energy Mix from 2016-2040 Canada’s role Source: IEA 2017 World Energy Outlook, New Policies Scenario become the Canada has enormous oil and natural gas resources. We have an opportunity to meet growing global demand in an environmentally and socially responsible manner. But this can only be achieved if Canadian oil and natural gas remain competitive and are able to world’s energy 5,000 attract investment and spur innovation. OIL supplier of NATURAL GAS The Canadian Association of Petroleum Producers (CAPP) believes Canada’s oil and natural gas industry can and should become the world’s energy supplier of choice. We further believe that governments can play a key role in seizing this opportunity by putting COAL choice – competitive and supportive policies into place. 4,000 generating There is a clear and growing demand for oil and natural gas, especially in developing countries such as India, China and throughout economic Southeast Asia. Canada could serve these emerging markets with responsibly produced fuels that displace production from other
ALEN T less regulated sources. The Canadian oil and natural gas industry is implementing innovative technologies to improve ef ciency and bene ts 3,000 reduce environmental impacts, demonstrating what it takes to be a responsible energy developer. Through substantial investments in QUI V E GROWING POPULATION, GROWING innovation and implementation of new technologies, Canada’s performance will continuously improve. across the OI L
ENERGY DEMAND F Canada can play a signi cant role in meeting the world’s future energy demand. Through innovation and technology, Canada country, and O BIOENERGY can leverage our leadership in environmental stewardship and responsible energy production to help address growing global The world’s population is Key ndings about the growth of 2,000 carbon emissions. At the same time, ensuring a healthy oil and natural gas industry with access to global markets also
minimizing ONNE S
expected to exceed nine billion T global energy requirements include: ensures ongoing prosperity and economic bene ts across our country.
by 2040. Over that same time NUCLEAR environmental • As the world’s population grows, total energy OTHER RENEWABLES However, Canada’s policies and environmental regulations must be developed in parallel with attracting investment, spurring period, as emerging economies demand will also increase.
MILLIO N innovation, growing jobs and maintaining economic bene ts across the country. At present this is not the case and Canada impacts at urbanize and industrialize, the 1,000 - A larger population, combined with global gross HYDRO risks falling behind other global energy supply competitors. home and global middle class is expected domestic product (GDP) growth and an expanding For example, with some notable exceptions such as Norway’s Statoil, the majority of global oil and natural gas reserves are to almost double. A larger middle class worldwide, means that by 2040 the around the held by nationally owned companies that face little to no climate legislation and associated costs. If Canadian production is population, combined with rising world will consume substantially more energy 0 constrained due to the cumulative effects of regulatory burden and lack of market access, global energy demand will simply
5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 0 0 0 0 0 0 0 gross domestic product and 0 0 0 0 0 0 0 1 than today. 1 1 1 1 1 1 3 3 3 3 3 3 3 2 2 2 2 2 2 2 3 3 3 3 3 3 world. 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 be met from other jurisdictions that have less stringent to no environmental policies. This is effectively a wealth transfer to 2 2 2 2 2 2 2 more disposable income, will 20 4 20 4 20 4 20 4 20 4 20 4 20 4 - The future energy mix will reect industrialization other countries with poorer environmental standards. drive the need for more energy and urbanization trends in emerging economies from all sources: total energy as their per-capita energy intensity increases to Regarding speci c energy sources, key ndings include: Therefore, CAPP recommends that: demand is expected to increase developed-economy levels. • Natural gas is expected to grow in both volume and market share to become • The federal government take a leadership role in de ning Canada’s vision for oil and natural gas that positions by 30 per cent from today to Canada as the supplier of choice to meet the world’s growing oil and natural gas needs. • Although there will be shifts in the overall global energy the world’s second-largest energy source overall. 2040. Although each fuel type’s mix, growing demand is expected to be met by all - The industrial sector will likely account for more than 40 per cent of - This vision should be supported through a co-ordinated effort with industry, provincial and territorial share in the total energy mix is available forms of energy. additional natural gas uses by 2040, as natural gas becomes essential governments, and individual Canadians to create an effective policy and regulatory environment that likely to change, energy usage to the development of emerging economies. encourages investment in Canada’s oil and natural gas resources, ensuring those resources are produced the • Energy ef ciency is expected to moderate global from all sources, including oil and Canadian way – with environmental and social responsibility. demand. The International Energy Agency (IEA) • The world energy mix is certainly changing, but oil is expected to continue natural gas, will increase. - This vision must include a focus on accessing world markets (particularly lower- to middle-income countries), estimates that the projected rise in global energy as the predominant energy source to at least 2040. a commitment to innovation, and global environmental stewardship. consumption by 2040 could more than double - The IEA estimates that oil will continue to have the largest share of any fuel source. without substantial expected improvements in - This vision must also seek action on the part of the federal government to undertake efforts that enhance - This continued high demand for oil will be driven largely by the transportation energy ef ciency. energy awareness and actively cultivate and grow support from Canadians for the responsible development of sector, including aviation and shipping, plus industrial and petrochemical Canada’s resources. uses. The IEA projects that oil will be a signi cant energy source even - Finally, the vision must encourage governments to align costs associated with environmental policies in other with the rise of electric vehicles. “Canada will remain a crucial supplier of oil and gas for the global jurisdictions, to support industry competitiveness and technological advancements that allow for continued • Electricity generation is the primary use for energy sources such as nuclear, innovation in the sector. marketplace and the industry is making efforts to improve its hydro and renewables. While the market share of these sources for electricity The competitiveness of Canada’s oil and natural gas industry is at risk. Canada has the opportunity to responsibly environmental performance.” generation is expected to increase, government targets and support policies meet growing global energy demand but the cumulative effect of policies and regulations are rapidly diminishing Fatih Birol, Executive Director, International Energy Agency, speaking at the Generation Energy Forum, Winnipeg, Manitoba, October 2017 remain the driving force behind much of this growth. Hydro is projected to this opportunity by thwarting industry growth, competitiveness and market access. remain the largest source of renewable-based power generation.
C T 30% the world’s energy supplier of choice.
Canada can Growth in the Global Energy Mix from 2016-2040 Canada’s role Source: IEA 2017 World Energy Outlook, New Policies Scenario become the Canada has enormous oil and natural gas resources. We have an opportunity to meet growing global demand in an environmentally and socially responsible manner. But this can only be achieved if Canadian oil and natural gas remain competitive and are able to world’s energy 5,000 attract investment and spur innovation. OIL supplier of NATURAL GAS The Canadian Association of Petroleum Producers (CAPP) believes Canada’s oil and natural gas industry can and should become the world’s energy supplier of choice. We further believe that governments can play a key role in seizing this opportunity by putting COAL choice – competitive and supportive policies into place. 4,000 generating There is a clear and growing demand for oil and natural gas, especially in developing countries such as India, China and throughout economic Southeast Asia. Canada could serve these emerging markets with responsibly produced fuels that displace production from other
ALEN T less regulated sources. The Canadian oil and natural gas industry is implementing innovative technologies to improve efciency and bene ts 3,000 reduce environmental impacts, demonstrating what it takes to be a responsible energy developer. Through substantial investments in QUI V E GROWING POPULATION, GROWING innovation and implementation of new technologies, Canada’s performance will continuously improve. across the OI L
ENERGY DEMAND F Canada can play a signicant role in meeting the world’s future energy demand. Through innovation and technology, Canada O country, and can leverage our leadership in environmental stewardship and responsible energy production to help address growing global BIOENERGY The world’s population is Key ndings about the growth of 2,000 carbon emissions. At the same time, ensuring a healthy oil and natural gas industry with access to global markets also minimizing ONNE S expected to exceed nine billion T global energy requirements include: ensures ongoing prosperity and economic benets across our country. by 2040. Over that same time NUCLEAR environmental • As the world’s population grows, total energy OTHER RENEWABLES However, Canada’s policies and environmental regulations must be developed in parallel with attracting investment, spurring period, as emerging economies demand will also increase.
MILLIO N innovation, growing jobs and maintaining economic benets across the country. At present this is not the case and Canada impacts at urbanize and industrialize, the 1,000 - A larger population, combined with global gross HYDRO risks falling behind other global energy supply competitors. home and global middle class is expected domestic product (GDP) growth and an expanding For example, with some notable exceptions such as Norway’s Statoil, the majority of global oil and natural gas reserves are to almost double. A larger middle class worldwide, means that by 2040 the around the held by nationally owned companies that face little to no climate legislation and associated costs. If Canadian production is population, combined with rising world will consume substantially more energy 0 constrained due to the cumulative effects of regulatory burden and lack of market access, global energy demand will simply
5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 0 0 0 0 0 0 0 gross domestic product and 0 0 0 0 0 0 0 1 than today. 1 1 1 1 1 1 3 3 3 3 3 3 3 2 2 2 2 2 2 2 3 3 3 3 3 3 world. 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 be met from other jurisdictions that have less stringent to no environmental policies. This is effectively a wealth transfer to 2 2 2 2 2 2 2 more disposable income, will 20 4 20 4 20 4 20 4 20 4 20 4 20 4 - The future energy mix will re ect industrialization other countries with poorer environmental standards. drive the need for more energy and urbanization trends in emerging economies from all sources: total energy as their per-capita energy intensity increases to Regarding speci c energy sources, key ndings include: T CA demand is expected to increase developed-economy levels. • Natural gas is expected to grow in both volume and market share to become • The federal government take a leadership role in de ning Canada’s vision for oil and natural gas that positions by 30 per cent from today to Canada as the supplier of choice to meet the world’s growing oil and natural gas needs. • Although there will be shifts in the overall global energy the world’s second-largest energy source overall. 2040. Although each fuel type’s mix, growing demand is expected to be met by all - The industrial sector will likely account for more than 40 per cent of - This vision should be supported through a co-ordinated effort with industry, provincial and territorial share in the total energy mix is available forms of energy. additional natural gas uses by 2040, as natural gas becomes essential governments, and individual Canadians to create an effective policy and regulatory environment that likely to change, energy usage to the development of emerging economies. encourages investment in Canada’s oil and natural gas resources, ensuring those resources are produced the • Energy efciency is expected to moderate global from all sources, including oil and Canadian way – with environmental and social responsibility. demand. The International Energy Agency (IEA) • The world energy mix is certainly changing, but oil is expected to continue natural gas, will increase. - This vision must include a focus on accessing world markets (particularly lower- to middle-income countries), estimates that the projected rise in global energy as the predominant energy source to at least 2040. a commitment to innovation, and global environmental stewardship. consumption by 2040 could more than double - The IEA estimates that oil will continue to have the largest share of any fuel source. without substantial expected improvements in - This vision must also seek action on the part of the federal government to undertake efforts that enhance - This continued high demand for oil will be driven largely by the transportation energy efciency. energy awareness and actively cultivate and grow support from Canadians for the responsible development of sector, including aviation and shipping, plus industrial and petrochemical Canada’s resources. uses. The IEA projects that oil will be a signicant energy source even - Finally, the vision must encourage governments to align costs associated with environmental policies in other with the rise of electric vehicles. “Canada will remain a crucial supplier of oil and gas for the global jurisdictions, to support industry competitiveness and technological advancements that allow for continued • Electricity generation is the primary use for energy sources such as nuclear, innovation in the sector. marketplace and the industry is making efforts to improve its hydro and renewables. While the market share of these sources for electricity The competitiveness of Canada’s oil and natural gas industry is at risk. Canada has the opportunity to responsibly environmental performance.” generation is expected to increase, government targets and support policies meet growing global energy demand but the cumulative effect of policies and regulations are rapidly diminishing Fatih Birol, Executive Director, International Energy Agency, speaking at the Generation Energy Forum, Winnipeg, Manitoba, October 2017 remain the driving force behind much of this growth. Hydro is projected to this opportunity by thwarting industry growth, competitiveness and market access. remain the largest source of renewable-based power generation.
CANADA’S ROLE THE WORLD’S FUTURE ENERGY MIX | 1