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Canadian Energy Centre

Lessons from rising tide of Indigenous ownership in Canadian oil and gas shared in Norway

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Indigenous Resource Network executive director John Desjarlais (right) and Norwegian prime minister Jonas Gahr Støre speak at the Arctic Frontiers Conference in Tromsø, Norway on Wednesday, Jan. 31, 2024. Photo courtesy Indigenous Resource Network.

From the Canadian Energy Centre

By Deborah Jaremko

Since 2022, more than 75 First Nations and Métis communities in Alberta and British Columbia have agreed to ownership stakes in energy projects including the Coastal GasLink pipeline and major oil sands transportation networks.     

The city of Tromsø, Norway, north of the Arctic Circle, is known as one of the best places in the world to see the northern lights.  

For John Desjarlais, it was also a place to share lessons from the growing leadership of Indigenous communities in Canadian resource development projects.  

In late January, Desjarlais – executive director of the Indigenous Resource Network – attended the Arctic Frontiers Conference in Tromsø, speaking on a panel with leaders including Norwegian prime minister Jonas Gahr Støre. 

“Sharing some of the examples across borders is important. It reflects Indigenous peoples’ values on kinship and reciprocity,” says Desjarlais, a professional engineer and member of the Nehinaw Cree Métis community. 

Indigenous people around the world including the Sami in northern Norway face similar socio-economic challenges to Indigenous communities in Canada, Desjarlais says. 

“They want to develop on their own terms. We want to share those tips on how we all move forward,” he says. 

“It is good business to partner with Indigenous partners. We’re starting to recognize not only the social value of reconciliation but also the business value. I think that’s happening much more quickly and progressively in Canada and that is being noted by our international allies.” 

From liquefied natural gas (LNG) export terminals to oil and gas pipelines, natural gas-fired power plants and carbon capture and storage (CCS) projects to reduce emissions, more Indigenous communities in Canada are taking on a leadership role 

Since 2022, more than 75 First Nations and Métis communities in Alberta and British Columbia have agreed to ownership stakes in energy projects including the Coastal GasLink pipeline and major oil sands transportation networks.     

“Those communities are moving forward in leaps and bounds in terms of their social impact,” Desjarlais says.  

Each community can take their own approach to how invest the funds from their participation in resource projects, according to Justin Bourque, president of Athabasca Indigenous Investments. 

The company represents 23 Indigenous communities in Alberta that became approximately 12 per cent owners of Enbridge oil sands pipelines in 2022. 

“The different partners have done what works for their particular community and circumstance,” Bourque told CEC following the one-year anniversary of the deal.    

“[Some] have used the funds disbursed to them to pay for more teachers or educational opportunities and building out their social infrastructure in their communities. One community is building a strategy around improving the quality of life for the elderly. Others have used the money to acquire lands or build infrastructure for their communities.” 

Desjarlais says it is important to share these stories with Canada’s global partners.  

“We don’t feed just national markets, we feed international markets. It’s important to showcase how we do things; that there is some best practice that is happening here, that we deliver responsible resource development,” he says.  

“We are in a lot of different places to inspire that confidence that we can develop at the speed and the rate that the world needs and in line with sustainability.” 

Artificial Intelligence

World’s largest AI chip builder Taiwan wants Canadian LNG

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Taiwan Semiconductor Manufacturing Company’s campus in Nanjing, China

From the Canadian Energy Centre

By Deborah Jaremko

Canada inches away from first large-scale LNG exports

The world’s leading producer of semiconductor chips wants access to Canadian energy as demand for artificial intelligence (AI) rapidly advances.  

Specifically, Canadian liquefied natural gas (LNG).  

The Taiwan Semiconductor Manufacturing Company (TSMC) produces at least 90 per cent of advanced chips in the global market, powering tech giants like Apple and Nvidia.  

Taiwanese companies together produce more than 60 per cent of chips used around the world. 

That takes a lot of electricity – so much that TSMC alone is on track to consume nearly one-quarter of Taiwan’s energy demand by 2030, according to S&P Global. 

“We are coming to the age of AI, and that is consuming more electricity demand than before,” said Harry Tseng, Taiwan’s representative in Canada, in a webcast hosted by Energy for a Secure Future. 

According to Taiwan’s Energy Administration, today coal (42 per cent), natural gas (40 per cent), renewables (9.5 per cent) and nuclear (6.3 per cent), primarily supply the country’s electricity 

The government is working to phase out both nuclear energy and coal-fired power.  

“We are trying to diversify the sources of power supply. We are looking at Canada and hoping that your natural gas, LNG, can help us,” Tseng said. 

Canada is inches away from its first large-scale LNG exports, expected mainly to travel to Asia.  

The Coastal GasLink pipeline connecting LNG Canada is now officially in commercial service, and the terminal’s owners are ramping up natural gas production to record rates, according to RBN Energy. 

RBN analyst Martin King expects the first shipments to leave LNG Canada by early next year, setting up for commercial operations in mid-2025.  

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Canadian Energy Centre

Report: Oil sands, Montney growth key to meet rising world energy demand

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Cenovus Energy’s Sunrise oil sands project in northern Alberta

From the Canadian Energy Centre

By Will Gibson

‘Canada continues to be resource-rich and competes very well against major U.S. resource bases’

A new report on North American energy highlights the important role that Canada’s oil sands and Montney natural gas resources play in supplying growing global energy demand.

In its annual North American supply outlook, Calgary-based Enverus Intelligence Research (a subsidiary of Enverus, which is headquartered in Texas and also operates in Europe and Asia) forecasts that by 2030, the world will require an additional seven million barrels per day (bbl/d) of oil and another 40 billion cubic feet per day (bcf/d) of natural gas.

“North America is one of the few regions where we’ve seen meaningful growth in the past 20 years,” said Enverus supply forecasting analyst Alex Ljubojevic.

Since 2005, North America has added 15 million bbl/d of liquid hydrocarbons and 50 bcf/d of gas production to the global market.

Enverus projects that by the end of this decade, that could grow by a further two million bbl/d of liquids and 15 bcf/d of natural gas if the oil benchmark WTI stays between US$70 and $80 per barrel and the natural gas benchmark Henry Hub stays between US$3.50 and $4 per million British thermal unit.

Ljubojevic said the oil sands in Alberta and the Montney play straddling Alberta and B.C.’s northern boarder are key assets because of their low cost structures and long-life resource inventories.

“Canada continues to be resource-rich and competes very well against major U.S. resource bases. Both the Montney and oil sands have comparable costs versus key U.S. basins such as the Permian,” he said.

“In the Montney, wells are being drilled longer and faster. In the oil sands, the big build outs of infrastructure have taken place. The companies are now fine-tuning those operations, making small improvements year-on-year [and] operators have continued to reduce their operating costs. Investment dollars will always flow to the lowest cost plays,” he said.

“Are the Montney and oil sands globally significant? Yes, and we expect that will continue to be the case moving forward.”

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