Anti-B.C. LNG Activists Don’t Want You to Know These Facts

#1 – Global energy demand is at a record all-time high and is projected to grow through 2050

• Some outlooks estimate global energy demand will grow 15% by 2050 ^[1]
• Natural gas demand alone has been projected to grow by up to 34% by 2050 ^[2]
• LNG demand is projected to grow by a hefty 50% or more by 2040 ^[3]
• China and countries in Asia/Southeast Asia are expected to account for a large majority of global LNG demand growth through 2040 to support their continued economic growth ^[3]
• The versatility and availability of natural gas has positioned it as a key energy source for developed and emerging economies worldwide ^[4][5]
• Natural gas accounted for 23% of global primary consumption in 2023 ^[6]

Why should Canada forego the massive economic opportunities associated with developing our energy resources, like anti-B.C. LNG activists would prefer, only to give these to less transparent and regulated producers abroad?

We’re talking about hundreds of billions of dollars in long-term economic benefits including countless jobs for Canadian and Indigenous communities.

Missing out on the development of our LNG sector is an opportunity we cannot afford to miss.

#2 – Canada is already a global leader in renewable energy

• Canada was the third-largest global producer of hydropower in the world in 2022, accounting for 61.7% of our total electricity supply ^[7]
• Canada was the ninth-largest producer of onshore wind capacity in the world in 2022 ^[8]
• Overall, Canada was home to the seventh-largest installed renewable energy capacity worldwide in 2023 ^[9]
• Wind and solar are the fastest-growing sources of electricity in Canada
• Cumulate installed solar PV capacity has grown from 26 megawatts (MW) in 2007 to 6,452 MW in 2022 ^[10]
• Cumulate installed wind power capacity has grown from 1,846 MW in 2007 to 15,132 MW in 2022 ^[10]

Why do anti-Canadian resource activists never mention Canada’s global leadership in renewable energy? If we are to have a balanced, honest, and pragmatic discussion, we should recognize that our country is already building out renewables like wind, solar, and hydro at a rapid pace.

In 2023, for example, Alberta – our country’s oil and gas powerhouse – accounted for more than 92% of Canada’s overall growth in renewable energy and energy-storage capacity ^[11].

Canadians don’t have to choose between supporting traditional or renewable energy sources. We can do both for a more robust economy and energy-secure future. Let’s not forget that electricity – a secondary form of energy often generated by natural gas or renewables – is critical for poverty alleviation, economic growth, and improved living standards and that no rich country on earth is also energy-poor ^[12].

#3 – Renewable energy additions globally haven’t replaced fossil fuel consumption, but rather have helped meet growing demand

• While renewables met 51% of new energy demand from 2017 to 2022, they are still just meeting the world's increasing energy needs rather than replacing fossil fuels --- in absolute terms, global fossil fuel supply is still growing ^[12]
• Despite trillions of dollars of investment into renewables over the past several years, the world is still heavily reliant on fossil fuels --- coal, oil, and natural gas accounted for 85.6% of global energy use in 1995, versus 81.8% in 2022 ^[13]
• Every single energy “transition” the world has had has been an energy “addition.” For example, oil was discovered in 1859 and eventually overtook coal despite the latter being the number one global energy source in the 1960s. Fast forward to today, and the world uses more coal than ever --- three times as much as in the 1960s. The idea that we will switch to a majority of renewables within 25 years isn’t very realistic ^[14].

We must be honest about what is happening in Canada and around the world. Despite anti-Canadian LNG activists’ claims, fossil fuels – particularly oil and natural gas – will be around for decades.

Canada is one of the few major democratic energy producers and exporters on the planet. Canadians have an immense opportunity to be a stable and reliable energy source for our allies and trade partners, underpinning resource security worldwide.

If we don’t produce the energy the world needs, someone else will – likely a less transparent country with little protection for human rights and poor social progress.

#4 – Natural resources help “pay the bills” in Canada

• Natural resources are a massive contributor to the Canadian economy at large, accounting for:
  • 3 million jobs
  • 50% of merchandise exports, valued at $377 billion
  • $464 billion of national GDP, or 21% of the economy
  • Tens of billions of dollars in public revenues annually
• The natural resources sector is an economic powerhouse that can help Canada turn its economy around and help solve some of the challenges it currently is facing, including:
  • Low productivity
  • Declining living standards
  • Weak business investment
• The oil and natural gas sector, for example, is projected to generate more than $1.1 trillion for Canadian governments between 2000-2032 ^[14][15] --- funds used to pay for our schools, hospitals, roads, and the public sector workers that staff our public institutions
• If it weren’t for the oil and natural gas sector, for example, Canada would be in a significant trade deficit of more than $1.1 trillion in 2022 ^[16]

Canada’s LNG sector could be a massive economic opportunity, if we let it. For example, developing a healthy LNG sector in B.C. could lead to more than $500 billion in economic activity, 96,550 more jobs a year, $6 billion in wages, and over $108 billion in provincial revenues and an additional $64 billion in federal revenue between 2020-2064 ^[17].

Imagine the schools, hospitals, and other public infrastructure and social programs we could support with the billions of dollars in revenues generated by a healthy LNG sector on the West Coast.

Why would anyone in their right mind want to cede such a significant economic opportunity to other countries abroad? If we don’t produce LNG, other nations, including Australia, Russia, Algeria, Nigeria, Qatar, and the United States, will gladly fill the void and reap the rewards.

#5 – B.C. LNG is ushering in once-in-a-lifetime opportunities for Indigenous economic reconciliation

• Cedar LNG, an up-and-coming floating facility in Kitimat, B.C., will be the largest Indigenous-owned infrastructure project that will “...make the most significant mark on economic reconciliation ever in Canada” – Chief Crystal Smith [20]
• The LNG Canada project, the largest private-sector investment in Canadian history, has spent $5 billion to date on contracts and procurements with B.C.-based businesses, including more than $4.1 billion to local and Indigenous-owned companies [21]
• Coastal GasLink, the natural gas pipeline that will supply the aforementioned LNG projects with feedstock, signed an agreement with 17 First Nations along its route to obtain a 10 per cent equity stake in the project

Anti-B.C. LNG activists push a narrative that would see many remote Indigenous communities miss out on the once-in-a-generation economic opportunities created by LNG development.

“Fundamentally, reconciliation is impossible without a strong economic foundation to advance change,” says Karen Ogen, CEO of the First Nations LNG Alliance [22].

“For Indigenous communities, the outcomes of building Canadian LNG are tangible and essential: jobs and Indigenous-owned businesses, own-source revenues to fund clean drinking water, housing and economic opportunities, and more.”

While anti-B.C. LNG activists enjoy all the benefits of an energy-abundant, contemporary lifestyle in one of the world's most advanced economies, First Nations are fighting to improve the challenging socio-economic conditions within their communities through LNG and the revenues generated from the development of these resources on their lands.

What right do LNG opponents have to determine what is good or not good for Indigenous communities that have chosen to partake in the economic opportunities presented by the natural resources economy?

Who benefits from the misinformation campaigns by B.C. LNG opponents?

It sure isn’t Canadians.

At a time when our country’s economy is failing compared to our international peers, Canadians need all the economic opportunities we can get.

Our country is in an economic productivity crisis. Strong productivity – which leads to faster economic growth, more jobs, and better wages – is an important way to protect Canadians from the risks of high inflation ^[18]. Over the past several years, Canadians have also seen a decline in their living standards compared to international peers, including the OECD and United States ^[14]. In fact, Canada is approaching the milestone of seeing the longest decline in individual living standards over the past four decades ^[19].

Thankfully, our natural resources sector can help turn things around. Supporting the development of our energy, forestry, mining, and agriculture sectors – highly productive industries in Canada – can stimulate the economy and help us get back on our feet ^[14].

However, our poor economic performance today is a symptom of a much larger problem in Canada. Since 2015, Canada has seen nearly $670 billion in natural resource projects cancelled or suspended, which includes several now-defunct LNG projects in B.C. Well-organized, well-funded activists pushed back against these projects, playing a role in their demise.

Will Canadians continue to give up the massive community-building, economy-stimulating economic opportunities associated with developing our natural resources, like that of the LNG sector in B.C.? Or, will we finally say, “enough is enough,” put our foot down, and put our full support behind building up the bedrock of our economy while simultaneously improving the wages and standard of living for families across the country?

If you want a stronger Canada and a more prosperous future for your family, the choice to support Canadian natural resources like B.C. LNG is clear.

Why would anyone obstruct #CanadianLNG?

- Global demand is growing
- We need the economic benefits
- Numerous countries are asking for it pic.twitter.com/lDhvi2SIQc

— LNG Action (@LNGAction) September 19, 2024

SOURCES:

_{1 - https://corporate.exxonmobil.com/sustainability-and-reports/global-outlook}

_{2 - https://www.gecf.org/events/the-gecf-premiered-the-8th-edition-of-its-global-gas-outlook-2050}

_{3 - https://www.shell.com/what-we-do/oil-and-natural-gas/liquefied-natural-gas-lng/lng-outlook-2024.html}

_{4 - https://www.ief.org/news/lng-a-versatile-energy-source-comes-into-its-own}

_{5 - https://www.iea.org/reports/the-role-of-gas-in-todays-energy-transitions}

_{6 - https://www.visualcapitalist.com/visualizing-global-energy-production-in-2023/}

_{7 - https://natural-resources.canada.ca/our-natural-resources/energy-sources-distribution/renewable-energy/hydroelectric-energy/25792}

_{8 - https://natural-resources.canada.ca/energy/energy-sources-distribution/renewables/wind-energy/7299}

_{9 - https://www.statista.com/statistics/267233/renewable-energy-capacity-worldwide-by-country/}

_{10 - https://natural-resources.canada.ca/our-natural-resources/energy-sources-distribution/renewable-energy/about-renewable-energy-canada/7295}

_{11 - https://renewablesassociation.ca/news-release-new-2023-data-shows-11-2-growth-for-wind-solar-energy-storage/}

_{12 - https://www.dnv.com/news/energy-transition-outlook-renewables-still-not-replacing-fossil-fuels-in-the-global-energy-mix-247880/}

_{13 - https://www.fraserinstitute.org/article/reliance-on-fossil-fuels-remains-virtually-unchanged-despite-trillions-for-clean-energy}

_{14 - https://bdl-lde.ca/wp-content/uploads/2024/09/Canadas_Natural_Wealth.pdf}

_{15 - https://www.canadianenergycentre.ca/755-billion-the-energy-sectors-revenue-contribution-to-canadian-governments-2000-2021/}

_{16 - https://www.canadianenergycentre.ca/495-billion-in-government-revenues-from-the-canadian-oil-and-gas-industry-projected-over-next-decade/}

_{17 - https://bdl-lde.ca/wp-content/uploads/2024/03/CAPP_EconomicAnalysis_March2024.pdf}

_{18 - https://www.bankofcanada.ca/2024/03/productivity-problem/}

_{19 - https://www.fraserinstitute.org/blogs/historic-decline-in-canadian-living-standards-continues-into-2024}

_{20 - https://www.cbc.ca/news/canada/british-columbia/bc-lng-project-green-light-1.7246525}

_{21 - https://www.lngcanada.ca/news/lng-canada-2024-fall-update/}

_{22 - https://indigenouslng.ca/}