Canada Needs More Pipelines and Transmission Lines. Here’s Why.

Canada Needs More Pipelines and Transmission Lines. Here’s Why.

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Canada’s status as one of the world’s most responsible producers and exporters of energy means we should be doing everything we can to provide our sustainably produced oil, natural gas, uranium, electricity and renewables to a world in dire need.

Yes, that means building more pipelines to transport more oil and natural gas to global markets. It also means building new transmission lines to export more of our non-emission electricity to the U.S.

Current global energy supply shortages and energy security concerns remind us why more Canadian energy flowing to buyers in the U.S., Europe and Asia would be a good thing for the world.

Today, energy-driven inflation is partially responsible for sending prices of just about everything through the roof. From food to electricity to heating to gas, the cost of living is becoming unaffordable for most families, period.

If only there were a reliable energy producer that could build more pipelines, export more electricity along with oil and gas and provide more supply to already constrained global markets?!

On that note, here are several reasons why Canada needs more oil and gas pipelines. Also see:

#1 - Global Energy Demand is Growing

Chrystia Freeland - Canada's energy sector is very important

Global demand for energy is growing, especially in developing economies across the globe. According to the IEA, global electricity demand grew by 6 per cent in 2021 on a year-over-year basis.

While the U.S. isn’t considered a “developing” nation, it is intently focussed on reducing domestic GHG emissions. One way the U.S. can continue to do so is to source more renewable electricity from the “Great White North.”

Canada currently exports about eight percent of its electricity to U.S. buyers, most - if not all of which - comes from non-emission sources such as nuclear, hydro and renewables. This electricity displaces more GHG-intensive forms of power generation, preventing the release of millions of tonnes of CO2 emissions into the atmosphere each year.

And with more transmission pipelines from renewable and nuclear-rich provinces, we can do more to provide the U.S. with zero-carbon power generating alternatives while benefiting Canadians and the global environment. Also see:

#2 - Global Fossil Fuel Demand is Growing

Canadian policy choices around energy matter - Darryl White - BMO CEO

Global demand for oil and gas also continues to grow, beating out pre-pandemic levels and returning to record-highs sometime in 2022.

The International Energy Agency (IEA) suggests that if the world continues on its current trajectory (Stated Policies Scenario), global oil demand will continue to grow for decades yet.

According to the IEA’s latest World Energy Outlook 2021, oil demand is projected to increase to ~104 million barrels per day (bpd) by 2035, then slowly drop to around 103.5 million bpd by 2040. Additionally, Shell’s latest outlook for liquefied natural gas (LNG) suggests global LNG demand will grow 90 per cent by 2040, from ~380 million megatonnes per annum (mmtpa) up to 700 mmtpa or more.

Amid global energy shortages even coal demand is rising as China, India, and other developing economies look to shore up supplies rather than make the switch to solar or wind. According to the IEA, global coal use will hit a record-high in 2022 after having its best year yet in 2021.

More Canadian pipelines means more low-carbon LNG supply for major emitters like China, who would drastically reduce GHGs by substituting Canadian natural gas for coal-fired power generation. Learn more:

#3 - Canada is an Environmental, Social & Governance Leader

Sonya Savage - it's time to start treating oil and gas reserves as something to be proud of

Of the world’s top energy producers and exporters, Canada is a leader on Environmental, Social and Governance (ESG) indices. And in many cases, Canada’s commitment to reducing greenhouse gas (GHG) emissions while protecting workers and the environment isn’t mirrored by other global energy superpowers.

Currently, Canada gets approximately 82 per cent of its power generation from non-emission sources such as wind, solar, hydro, nuclear and biofuels. The same can’t be said for most other major energy producers and exporters.

So the question remains: what country would you choose to fulfill your energy needs? Stable and responsible suppliers like Canada who lead by example, or producers often with little to no government transparency and weaker protections for human rights and the environment?

Canada’s world-class ESG rankings speak for themselves; Canada should be a go-to supplier for the world’s energy needs today and in the future. We can do that by building more oil and gas pipelines and transmission lines for improved access to global markets.

#4 - Pipelines Can Also Transport Energy Products of the Future

Olaf Scholz - German Chancellor on importance of energy security

Canadians should know that pipelines currently transporting oil and gas can also be utilized to transport energy products of the future.

Hydrogen and ammonia are likely candidates.

According to a recent report by Wood Mackenzie, low or zero-carbon hydrogen demand is projected to account for 7 per cent of global final energy demand by 2050.

Government officials and energy analysts believe Canada can develop low or zero-emission hydrogen through a handful of tools such as small modular nuclear reactors (SMRs), renewable energy, or, in the case of natural gas, utilizing carbon capture and storage technology.

Any energy transition to a lower-carbon future where hydrogen is transported through major pipelines instead of oil and gas will require significant capital investment. Hence, building more oil and gas pipelines today will generate even more revenues for the public and private sectors which can help make any energy transition a reality – sooner.

#5 – More Pipelines & Transmission Lines Equals More Revenues

Kaja Kallas - Estonia is building an LNG import facility

Canadian pipelines and transmission lines create substantial benefits for both Canadian families and governments.

The Canada-US oil and gas pipeline transportation network, for example, created $9.2 billion in economic activity in 2019 and employed more than 13,400 people across the country that same year. Additionally, these pipelines are responsible for exporting billions of dollars worth of exports per annum.

Another example, Statistics Canada reported that shipments of oil, natural gas, coal and refined petroleum exports reached about $150 billion over the past 12 months – a record high for our nation. As a share of total merchandise exports, the fossil-fuel industry represented 27.4 per cent of shipments in March 2022 – matching Canada’s previous all-time high set in 2014.

Apart from coal, almost all Canadian oil and gas exports are sent south of the border.

Electricity transmission lines also create huge economic benefits for Canadians. Manitoba, for example, exports billions of dollars worth of renewable hydroelectric power to U.S. buyers. From 2010-2019, more than 22 per cent ($3.9 billion) of the province’s total electric revenue came from these exports.

Hydro-Quebec is yet another example of the prosperity generated for Canadians by expanding access to U.S. electricity markets. The public utility inked a $20 billion deal to provide New York State with renewably generated hydropower to replace “peaker plants,” some of the dirtiest power facilities statewide.

Overall, Canadian electricity exports to the U.S. totalled $54.5 billion between 2000 and 2019 and over $2.5 billion in 2019 alone.

Imagine if we had new energy transmission lines expanding Canada’s access to markets across oceans and in the U.S.?! Those revenues would surely help to pay for the massive USD $275 trillion tab accompanying the transition to a “net-zero emissions” future.

#6 - Improved Energy Security for Allies & Trade Partners

Mark Rutte is looking for new energy sources of supply

More Canadian pipelines crossing the southern border and to tidewater would mean more access to energy supplies for our closest allies and trade partners.

Just take a look at what’s happening around the globe.

U.S. inflation is at its highest level in 40 years, partially a result from the lack of energy supplies – namely oil and gas – due to the conflict in Ukraine.

The EU – heavily reliant on Russia for petroleum products – is also seeing widespread energy-driven inflation as prices spike for everything from fuel and fertilizer to food and feedstock.

Canadians are also seeing the highest gas prices in history due to the imbalance in supply and demand on the global market.

Let’s face it; the world needs more Canadian energy!

Canada’s vast abundance of natural resources reserves mean we are a natural choice to fill in as an energy supplier to Europe, the U.S., and other parts of the world.

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More Canadian pipelines and transmission lines means we could supply the world with more responsibly produced energy!

From oil to natural gas to renewables to nuclear, global energy demand is growing and supplies are short. It's clear that the world needs more Canadian energy, and new energy transmission lines - oil, natural gas, electricity - are an integral part of that equation!

Give us a follow or like on Instagram, Youtube and Facebook today to learn more about why the world needs more Canadian energy on global markets – and more pipelines to make that a reality! We are looking forward to seeing you there!