Other Countries Benefit When Canadians Miss Out On Oil & Gas Development

Other Countries Benefit When Canadians Miss Out On Oil & Gas Development

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what countries benefit when Canada misses out on energy development

Who benefits when Canada drags its feet on energy development? It sure isn’t Canadians.

When Canada doesn’t manage to build major energy infrastructure projects, we miss out on potentially life-changing economic opportunities that would strengthen our economy and create a more prosperous future for our children.

Because when we don't get an oil pipeline or LNG export facility built, another country will happily take advantage of the opportunity. Take the U.S., for example, which has built seven LNG facilities and approved 21 more in just six years, while it has taken us a decade to nearly complete just one project [9].

We’re talking hundreds of billions of dollars in lost investment over the past several years alone [1], not to mention the hundreds of billions of dollars in added economic activity over the lifetime of such projects never to be realized here at home, but instead, in some other country far, far away.

All the while, global oil and natural gas demand continues growing to new record highs.

Here are a few glaring examples showing how shutting down Canadian energy development hasn’t kept a single molecule of oil and gas in the ground while simultaneously serving to make our families and country poorer.

what countries benefit when Canada misses out on liquefied natural gas development

Keystone XL Project

Since the Keystone XL pipeline project was first announced by industry proponents in 2008, global oil demand has grown from 85.9 million barrels per day (bpd) to a projected 104.46 million bpd in 2024 [2].

Northern Gateway Cancelled

Since the Northern Gateway oil pipeline project was cancelled in 2016, global oil demand has grown by a whopping 8.76 million bpd --- more than all of Canada’s total annual oil production last year (4.9 million bpd) [2][3].

Energy East Cancelled

Since 2017 when the Energy East pipeline’s proponent cancelled the project largely due to regulatory uncertainty, global oil demand has grown by 6.79 million bpd [2], and - due to geopolitical instability and conflicts - many European countries are now looking for new reliable energy supply chains while still having no choice but to import oil and natural gas from rivals [4].

Germany Asks for LNG

Ever since German Chancellor Olaf Scholz came to Canada in 2022 asking us for our liquefied natural gas (LNG) and left with no promises, Germany has gone on to sign several natural gas supply deals with Algeria, Qatar, and the United States to name a few examples [5]][6].

Japan Asks for LNG

Ever since Japan’s then Prime Minister Fumio Kishida came to Canada in 2023 to press our government for reliable LNG supply, his country has gone on to invest multiple billions of dollars in LNG projects worldwide to shore up energy supplies and double down on energy security [7].

Goldboro LNG Cancelled

Ever since the Goldboro LNG project in Nova Scotia was cancelled in late 2023, it has been announced that three new U.S. LNG projects under construction are expected to commence operations by the beginning of next year [8].

Canada & the U.S. 

While it has taken Canada more than a decade to get one LNG facility approved and built in the country, the United States has built seven and approved 21 in just six years [9].

The World Needs More Canadian Energy

global oil demand could exceed 110 million barrels per day - Canada Action

Canadians can no longer afford to miss out on oil and natural gas development. These projects represent some of the largest private capital investments in our nation’s history [10], creating good-paying jobs and generating massive public revenues to support our social programs like healthcare and education.

As long as the world needs these energy sources – and it will for decades – we should be the last one “out of the pool.”

Canada remains one of the few major democratic oil and natural gas producers on the planet. Let’s recognize our country’s energy sector for what it is: a reliable source of supply that shines bright in a rather unpredictable world.

The world needs more Canadian energy - not less! Join us today if you agree!

SOURCES:

1 - https://financialpost.com/commodities/energy/scrapped-nearly-150-billion-worth-of-energy-projects-shelved-in-canada

2 - https://www.statista.com/statistics/271823/global-crude-oil-demand/

3 – https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/market-snapshots/2024/market-snapshot-almost-all-canadian-crude-oil-exports-went-to-the-united-states-in-2023.html

4 - https://www.gtreview.com/news/europe/eu-still-buying-russian-oil-products-as-turkey-becomes-re-export-hub/

5 - https://www.reuters.com/business/energy/german-econ-minister-satisfied-with-15-year-lng-deal-with-qatar-2022-11-29/

6 - https://www.reuters.com/business/energy/venture-global-lng-signs-20-year-contract-with-german-energy-firm-2023-06-22/

7 - https://www.bloomberg.com/news/articles/2024-02-07/vng-inks-germany-s-first-deal-with-algeria-for-pipeline-gas

8 - https://www.offshore-energy.biz/start-up-of-three-lng-projects-paving-the-way-for-rise-in-us-natural-gas-trade/

9 - https://calgaryherald.com/opinion/columnists/varcoe-trans-mountain-expansion-built-lng-canada-to-cross-finish-line

10 - https://www.canada.ca/en/innovation-science-economic-development/news/2019/06/government-of-canada-confirms-support-for-largest-private-investment-in-canadian-history.html