Overview of Oil and Gas in Canada
Despite many companies and countries realizing the importance of renewable energy the Oil industry believes that a strong energy sector is how Canada can ensure its future. This sector of the future needs access to emerging markets and a regulatory system that understands its needs. Without those things Canada is risking jobs, capital investment, and economic growth. Total capital spending for 2019 has decreased 50%, from $81 billion (2014) to $37 billion (2019) which could be the beginning of these adverse effects. Big Oil argues that a strong oil sands sector is an economic force not to be reckoned with, and that it drives the economy of the country and not only Alberta. It does so by having companies around the country supply the oil sands sector with goods and services thus contributing to job creation and growth across Canada.
Claiming that renewable energy by itself won’t keep up with energy demand, Big Oil proposes that every energy resource be used to meet worldwide energy needs. The International Energy Agency predicts that the global need for energy will increase by 27% in just two decades as standards of living increase in both the developed and developing nations. If oil and gas stay profitable, Canada stands to gain massively as one of the few countries in the Organization for Economic Co-operation and Development that has growing oil production, solidifying Canada’s place as the sixth-largest oil producer within the top ten energy producing countries. As for natural gas, Canada is the fifth- largest producer.
Canada is in an incredibly unique position where it can have it’s pick between oil, gas, and investing in renewables. Overall the Canadian energy industry is a $101 billion-a-year industry, and to maintain Canada’s economic competitiveness, the Canadian Association of Petroleum Producers advocate for a “balanced public policy approach” that seeks to protect the oil and gas industry while emphasizing Big Oil’s “world class environmental, safety, and regulatory” record. No matter the position you take on the oil and gas industry, it is an unbelievably important industry in Canada.