Alberta
International Energy Agency boss prefers oil and gas from Canada
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This article is submitted by Canadian Energy Centre Ltd.
Producers building a competitive advantage with ESG performance
The head of the International Energy Agency says Canada is a preferred global oil and gas supplier and should take steps to ensure it remains so in the decades to come.
IEA executive director Fatih Birol is a big advocate for net zero targets, but he knows that even as the world transforms its energy systems, oil and gas will be around for a long time.
He’d prefer the supply comes from “good partners” like Canada, Birol said on Jan. 13 during the virtual launch of the IEA’s Canada 2022 report.
The Paris-based IEA is a world-recognized authority on energy supply, demand and policy.
“Canada has been a cornerstone of global energy markets, a reliable partner, for years,” Birol said.
“We will still need oil and gas for years to come… I prefer that oil is produced by countries… like Canada who want to reduce the emissions of oil and gas.”
World oil consumption has returned near pre-pandemic levels, and natural gas demand surpassed levels pre-COVID last year, according to IEA data. Consumption of both is expected to continue rising even as more renewable energy sources come online.
In Europe, energy customers are feeling the pain of dealing with an unreliable supplier.
Birol said Europe’s natural gas crisis is in part because it depends on Russia for nearly half its natural gas imports. As a result, Russia’s policies “have a huge impact on the European energy mix.”
Right now, Russia has unused capacity to send the equivalent of a full LNG vessel every day to help reduce natural gas prices in Europe, amid a standoff between Moscow and the West over Ukraine, Birol told reporters last week.
“[The] world needs reliable partners,” he said. Canada’s first LNG exports are expected in 2025 and forecast to rise steadily thereafter, the IEA noted in its report.
Canada is the world’s fourth-largest producer of oil and natural gas and home to the third-largest oil reserves, which “creates employment for Canadians and secure and reliable oil and gas for both domestic and global markets,” the IEA said.
Remaining competitive in global oil and gas markets – and ensuring the sector remains a major driver of the Canadian economy beyond 2050 – requires emissions reductions, the IEA said, praising work that has been done already.
Canada is not only stable and reliable, but its LNG supply will also be cleaner than competitors, the IEA said.
The LNG Canada project that is under construction in B.C. is expected to have the lowest carbon emissions intensity of any large LNG facility currently operating in the world, at 60 per cent lower than the global average.
Other proposed LNG projects in Canada plan to use clean, renewable hydroelectricity to power operations, resulting in emissions profiles up to 90 per cent lower than global competitors, the IEA said.
Analysts praised the oil and gas industry’s “strong track record” of reducing emissions intensity, in the oil sands by 32 per cent since 1990 and by 13 per cent for natural gas production since 2010. A further reduction of up to 27 per cent is expected in the oil sands by 2030.
The success is in part because of large investments in clean technology and environmental protection, the IEA said.
Oil and gas companies in Canada together spend an average of $1 billion per year on energy cleantech, in addition to billions in environmental protection.
In 2018, oil and gas companies also invested $3.6 billion in environmental protection initiatives – by far the largest environmental protection spend of any industry in the country, the IEA said.
“Canadian oil and natural gas producers are leveraging their improving environmental, social and governance performance and Canada’s stringent environmental regulations to build a global competitive advantage” as interest in cleaner fuels and environmental sustainability grows.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
Alberta
Premier Smith and Health Mininster LaGrange react to AHS allegations
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Alberta Premier Danielle Smith and Health Minister Adriana LaGrange respond to allegations of political interference in the issuing of health-care contracts.
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