Natural gas is one of the fastest-growing sources of energy in the world. Many in the energy sector see it as a game-changer; it is a highly versatile fossil fuel, especially for power and heat generation.
And Canada is lucky to have this critical natural resource in abundance, exemplified by the fact that we are the fifth-largest producer and sixth-largest exporter of natural gas globally.
Natural Gas in Canada: Facts
- The oil and gas sector supports nearly 500,000 direct and indirect jobs across the country
- Canada has the 17th largest proven natural gas reserves - about 1% of global supply
- Canada is also home to the world's 5th largest unproved but technically recoverable shale gas resources - about 8% of global supply, similar in volume to U.S. shale gas reserves
- 98% of natural gas produced in Canada is from the western provinces, while over 70% of the population lives east of Manitoba
- 46% of Canadian production is exported to the United States
- Canada's net natural gas exports (exports minus imports) were valued at $9.6 billion in 2021
- 99% of U.S. imports and 9% of U.S. consumption came from Canada in 2021
- 97% of Canada’s imports and 20% of Canadian consumption came from the U.S. in 2021
Source: Natural Resources Canada - Energy Factbook 2022-2023
Canada Must Reach New Markets
Hundreds of thousands of Canadians in the energy sector work hard to provide our society with the energy it needs. Any product not used domestically is sent to the U.S., our only export market, where it is bought at a steep discount and costs our economy tens of millions of dollars a day.
In recent years, the U.S. has increased its own natural gas production considerably, allowing more domestic supply to meet demand and decreasing its own reliance on Canadian imports. In fact, new production from massive shale gas plays like the Marcellus formation has resulted in an increase of natural gas imports from the U.S. into eastern Canada. Meanwhile, the U.S. is focused on building several new liquefied natural gas (LNG) plants to facilitate exports to Asia, Europe and other parts of the world.
Canada needs to start rethinking its natural gas export strategy before it gets left behind in the global LNG race. The world's top producers like Australia, Qatar and the U.S. are already a decade ahead of Canada in developing their LNG export sectors and are continuing to move forward with more new projects over the next several years.
Canadians have an incredible opportunity to provide the world with the natural gas it needs over the coming decades. For example, global demand for LNG is projected to soar by as much as 70% by 2040 according to Shell's LNG Outlook 2024.
With our vast natural gas reserves and existing renewable energy infrastructure, Canada can build some of the best liquefaction facilities in the world. It's a once-in-a-generation chance that will usher in a new era of prosperity for Canadians, advance economic reconciliation with Indigenous communities, and generate public revenues for our governments all at once.
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Global demand for natural gas is projected to increase for decades to come as energy demand continues to grow. As one of the few democratic natural gas producers worldwide, Canada needs to find new markets for its gas while vying for as much global market share as possible.
Canadians have an immense opportunity to create billions of dollars in economic activity and government revenues plus tens of thousands of long-term jobs here at home while underpinning economic reconciliation with Indigenous communities.
What’s good for the future of Canada’s natural gas industry is good for our country; why wouldn’t we seize the opportunity for long-term jobs, Indigenous and non-Indigenous prosperity and bountiful government revenues while it’s here!?
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