Guilbeault is wrong. Canadian oil and gas can help save the world – Lake Superior News
Mislead Canadians about what we can do to help our allies and the world
THUNDER BAY, ONTARIO ~~~~~ March 13, 2022 (LSNews) Federal Environment Minister Steven Guilbeault recently declared that Canada was not the solution to the energy security crisis caused by Russia’s invasion of Ukraine.
He is wrong and he is misleading Canadians about what we can do to help our allies and the world.
Guilbeault is a former Greenpeace activist fiercely opposed to Canadian oil and gas. Here is my response to three things he said.
“We cannot help Europe with oil.”
Wrong. We can. Just not tomorrow. But these are long-term energy solutions.
Europe will continue to need substantial volumes of crude oil in the decades to come, even as more renewables come online. According to the latest outlook from the International Energy Agency, Europe will consume 10 million barrels of oil per day in 2030 and 6 million barrels per day in 2050.
But the European market cannot be considered in isolation. This is part of the global oil trade, where, driven by emerging economies in Asia and Africa, aggregate demand is expected to grow to 103 million barrels per day in 2030 from 97 million barrels per day in 2019. 2050, the IEA expects the world to consume another 103 million barrels per day.
The expansion of the Trans Mountain pipeline currently under construction to the coast of British Columbia is a step in the right direction to help reduce the world’s dependence on Russia for oil, but with its vast resources and its commitment to responsible development, Canada can do more.
Canada can also help with natural gas. Although liquefied natural gas (LNG) shipments from Canada’s west coast are likely destined for Asia, any increase in supply in world markets could help reduce Canada’s dependence on natural gas. Russia.
Consider that this winter, in the face of natural gas shortages, Europe was able to buy LNG shipments that might otherwise have been destined for Asia by offering a higher price, according to analyst firm RBN Energy.
And then there are the proposed LNG terminals on the east coast of Canada that could supply European markets directly.
Canada’s federal government can shift course to accelerate and defend major oil and gas export projects, signaling to investors that Canada is the global energy solution.
“We are building a pipeline. It’s just going in the wrong direction.
Wrong. The Trans Mountain expansion is a step in the right direction. Allowing Canadian oil exports to Asia can have a global impact.
Guilbeault misunderstands that oil and gas markets are a global ecosystem and that an increase in supply from one region can have a ripple effect on supply and demand in others.
Oil demand in the Asia-Pacific region is expected to rise to 39 million barrels per day in 2050 from 32 million barrels per day in 2019, according to the IEA.
Much like the situation for LNG, Canada’s tankers can help meet demand in Asia and divert more supply to Europe, potentially displacing Russian oil exports.
The world needs reliable oil suppliers. Once Canadian oil is loaded onto tankers, it can go where buyers take it.
And these tankers don’t just have to be loaded on the west coast of Canada. In addition to connecting western oil to consumers in eastern Canada, displacing foreign oil imports from places like Russia, the Energy East pipeline would have terminated at an ocean terminal in New Brunswick which could ship directly to Europe.
Canada still needs a west-east pipeline.
“The solution to the world’s energy problems is not to increase our dependence on fossil fuels.”
Misleading. The energy security challenge facing the world today is not about increasing demand for oil and gas. It’s about meeting demand that already exists and, in many cases, is expected to grow, while reducing environmental impacts such as greenhouse gas emissions.
Canada is a reliable supplier of oil and gas and a leader in environmental protection. According to BMO Capital Markets, Canadian oil producers are doing more to reduce emissions than any other region. Major oil sands producers have jointly committed to net zero emissions, and Canada’s oil and gas sector spends more on clean energy technology than any other sector in the country.
And Canadian natural gas, exported as LNG, can make a difference in reducing global emissions by displacing coal power.
On average, switching from coal to natural gas for power generation reduces emissions by 50%, according to the IEA. But switching to Canadian natural gas in particular could reduce emissions by up to 62%, according to a June 2020 study published in the Journal for Cleaner Production.
Renewables are playing an increasing role in global energy markets, but the reality is that these technologies are not yet capable of delivering the scale of energy the world needs. Recall that the energy crisis in Europe prior to Russia’s invasion of Ukraine was partly due to an overreliance on wind power when the wind simply wasn’t blowing.
Oil and gas will co-exist with renewables in the mix as far as any credible forecast can see. Canada’s leadership must defend our resources so that the world can benefit from our reliable and responsible production while Canadians benefit at the same time.
According to United Nations projections, the world’s population is expected to increase by two billion people by 2050, to reach 9.7 billion, driven mainly by growth in India.
It is unfair to expect developing countries to stop using fossil fuels, Indian Energy Minister Raj Kumar Singh told a 2021 meeting hosted by the IEA.
“You have 800 million people without access to electricity. … You can’t say they have to hit net zero. No, sorry, they have the right to develop…they want to build skyscrapers and have a higher standard of living, and you can’t stop that,” he said.
director of content for Canadian Energy Center,
a corporation of the Government of Alberta
funded in part by taxes paid by industry on carbon emissions.
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The opinions expressed in this opinion piece are solely those of their author and are not necessarily shared or endorsed by Lake Superior News/Lake Superior Media.
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