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Canadian Energy Centre

Why Canada’s proposed oil and gas emissions cap goes against UNDRIP and the rights of Indigenous people

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Indigenous Resource Network executive director John Desjarlais (centre), with Justin Bourque, president of Âsokan Generational Developments, and Shelby Kennedy, community and Indigenous relations advisor with Enbridge. Photo courtesy Indigenous Resource Network

From the Canadian Energy Centre

By Deborah Jaremko

Q&A with John Desjarlais, executive director of the Indigenous Resource Network

The Indigenous Resource Network (IRN) is pushing back on Canada’s proposed framework to cap emissions from the oil and gas sector.  

IRN executive director John Desjarlais says the proposal directly contradicts Canada’s support for the United Nations Declaration on the Rights of Indigenous People (UNDRIP). 

He says the plan would cap opportunity for Indigenous communities as more take on ownership positions in major energy projects from oil and gas pipelines to liquefied natural gas terminals and carbon capture and storage projects. 

Here’s what Desjarlais told CEC.  

CEC: From the perspective of Indigenous communities across Canada who are involved in natural resources development, what’s your take on the federal government’s proposed oil and gas emissions cap?  

John Desjarlais: There’s a lot of confidence that it will curtail production as well, and obvious concern that it’s going to mean less opportunity.  

We’ve heard from communities that are saying we’re involved already in emissions reduction. There are communities that just want to advance their opportunities in that space. And it’s at a time when there’s probably the greatest appetite for Indigenous involvement, not just in ownership, but advanced business development and procurement. [It could] mean less jobs, less procurement, less ownership opportunity, less investment. 

There are concerns that these impacts are not being heavily understood, measured, contemplated or considered in terms of the policy development and implementation. 

CEC: How does being involved in oil and gas development benefit Indigenous communities?  

JD: There’s a suite of benefits that are coming from increased engagement, and it’s much deeper than just jobs. 

Communities are now jumping into revenue generating assets where they’re creating immediate cash flow, which is allowing them to start to self-determine and invest back into their community either through economic development or through infrastructure programming. 

The other side to it is just the capacity that comes from being involved as an owner. Indigenous business and community leaders are being exposed to the requirements and the acumen needed to successfully participate in the ownership of decision making. That’s accelerating the development of the acumen and capacity of different indigenous communities at greater rates 

CEC: How many communities would you estimate are now participating at this level?  

JD: There’s probably upwards directly of at least 100 different communities now. There are double-digit communities that are involved in at least four or five different deals that are directly involved in the ownership and the benefit side, and then there’s cascading involvement of all the surrounding communities through procurement opportunities and employment. It’s growing quite quickly. 

CEC: Why do you say the proposed emissions cap contradicts the United Nations Declaration on the Rights of Indigenous People?  

It’s a policy that’s created to achieve certain goals. Creating those types of targets without Indigenous oversight – not just input, [but] oversight and ownership – is problematic because it contradicts the UNDRIP action plan in terms of stepping out of the way of affording Indigenous peoples and communities the ability to self-determine; to invest where they want to invest, and to grow how they want to grow. 

We hear a lot of community leaders say, ‘we know what’s best for our territories.’ To have policy that limits our ability to make the decisions we want to make in regard to environmental and economic sustainability is a challenge. 

CEC: What would you like to see happen?  

JD: It’s a little hard to roll back and involve communities in a total redesign, but at least if we saw an understanding that there’s certainly going to be an economic impact. If there’s a production cap aspect to it, there’s going to be an economic impact to those Indigenous communities that have established livelihoods and revenue streams.  

There’s the sentiment that if the government truly is advancing this in the direction that they are, then would they consider omission of Indigenous activity so they can continue advancing their economic interests and growth? 

Ideally, [there would be] a policy that’s created in line with UNDRIP that works for communities, industries and governments in their goals. 

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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