As Long as the World Needs Oil & Gas, It Should Be Canadian

3 Reasons Why the World Needs More Canadian-Made Oil & Gas

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#1 - Oil and gas demand is currently at record highs and is projected to grow for years

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Canadians should agree that as long as the world needs oil and natural gas, our country should produce it. This would benefit our families here at home while generating public revenues to help pay for our social programs, which contribute immensely to our standard of living.

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A few recent oil and natural gas demand projections:

• The International Energy Agency’s World Energy Outlook 2024 predicted global oil demand will be 2.6 million barrels per day (bpd) higher in 2030 than current levels. It also found that in 2035, global oil demand will be equivalent to 2023 levels ^[4]. Meanwhile, projections from other sources estimate global oil demand to be higher in 2050 than today ^[5].

• The IEA’s WEO 2024 also estimates global natural gas demand to be 4,377 billion cubic metres (bcm) in 2050, higher than today’s 4,186 bcm ^[4]. Liquefied natural gas demand is expected to skyrocket over the next several years; the latest industry outlook predicts global LNG will grow by more than 50% through 2040 ^[6].

• The IEA has also stated that global oil and natural gas demand are at all-time highs ^[7][8].

The Energy Institute’s Statistical Review of World Energy 2024 found that fossil fuels accounted for 81% of the world’s primary energy consumption in 2023, with oil accounting for 32% and gas 23%, respectively -- or 55% of the global energy mix ^[9]. Projections from other sources expect oil and natural gas to account for about the same, or 54% of the world’s energy supply in 2050 ^[5].

For perspective, trillions of dollars of investment in renewables over the past several years have barely moved the needle. According to Goldman Sachs, $3.8 trillion of investment in renewables between 2012 and 2021 moved fossil fuels from 82% to 81% of overall global energy consumption ^[10].

It is clear that we need an “all of the above” solution to energy security and a strong economy for Canadian families.

#2 – The Importance of Oil & Gas to Canada’s Economy

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Canadians benefit immensely from the economic opportunities afforded to them by the job-creating, prosperity-generating oil and gas industry.

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Oil and gas is an oversized contributor to the national economy, underpinning Canadians’ standard of living nationwide. For example, the sector:

• is projected to generate more than $1.1 trillion in revenues for Canadian governments between 2000 and 2032, helping to pay for healthcare, education, infrastructure, and other public expenditures ^[11][12]

• in 2022 alone, the oil and gas sector generated $45 billion in government revenues ^[13]

• supports 900,000 direct, indirect, and induced jobs across the country ^[3]

• accounted for 25% of Canada’s total merchandise exports in 2023 ^[3]

Additionally, natural resources accounted for 46.5% of Canada’s manufacturing output in 2019 ^[14].

To illustrate the oversized contribution Canada’s oil and gas sector makes to Canada’s prosperity at large, the Coalition for A Better Future recently estimated that without oil and natural gas exports and other energy goods, Canada’s cumulate trade deficit with the rest of the world – which stood at $130 billion in the decade ending in 2023 – would have ballooned to $1 trillion ^[15].

Canada’s energy exports provide our country with the means to pay for our imports of goods and services while supporting hundreds of thousands of well-paying jobs and generating tens of billions of public revenues for our governments ^[15]. Opposing the proliferation of our home-grown industry while global demand continues to expand makes no economic sense.

#3 - Canada’s Performance Amongst Energy-Producing Peers

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Countries looking for new energy sources have said they prefer Canada as a supply source because of our shared values. It is no secret that our country is a bastion of democracy in an increasingly hostile world.

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Canada consistently ranks high amongst the top oil and natural gas producers on several global indices, showing our leadership in social progress, freedom, democracy, and other categories that make our country an ideal energy supplier of choice.

On the Democracy Index 2023, for example, Canada ranks exceptionally high amongst the world’s top energy producers:

• 1^st – Norway
• 13^th – Canada
• 14^th – Australia
• 29^th – USA
• 40^th – Malaysia
• 104^th – Nigeria
• 107^th – Angola
• 110^th – Algeria
• 111^th – Qatar
• 114^th – Kuwait
• 119^th – Oman
• 120^th – Kazakhstan
• 125^th – UAE
• 128^th – Iraq
• 144^th – Russia
• 150^th – Saudi Arabia
• 153^rd – Iran

On the Freedom in the World 2024, Canada once again shows it is the second “freest” oil and gas producer on the planet:

• 98 – Norway (free)
• 97 – Canada (free)
• 95 – Australia (free)
• 83 – United States (free)
• 72 – Brazil (free)
• 57 – Indonesia (partly free)
• 38 – Kuwait (partly free)
• 32 – Algeria (not free)
• 28 – Algeria (not free)
• 18 – United Arab Emirates (not free)
• 13 – Russia (not free)
• 11 – Iran (not free)
• 9 – Libya (not free)
• 8 – Saudi Arabia (not free)

Several other related indices show Canada’s leadership on the global stage amongst the world's top energy producers and exporters, including the Social Progress Index, Global Peace Index, World Press Freedom Index, and more.

Therefore, as long as we need oil and natural gas, we believe it should come from producers like Canada with strong social progress, freedom of speech, rule of law, gender equality, and human rights protections.

Letting other less transparent and regulated countries fulfill growing demand does not make the world a better place.

Join Us Today!

Supporting Canada’s oil and natural gas sector means a stronger and more prosperous future for our families, positioning our country as a go-to supplier for energy.

As long as the world needs oil and gas, it should be Canadian.

Join us online to learn more about Canada’s natural resource sectors – forestry, mining, energy, agriculture – and their overwhelmingly positive impact on Canadian families and the world.

Natural resources are a key contributor to Canada’s economic security. #CdnPoli pic.twitter.com/LVtDxAFuU4

— Canada Action (@CanadaAction) October 11, 2024

SOURCES:

_{1 – https://www.eia.gov/tools/faqs/faq.php?id=709&t=6}

_{2 - https://www.offshore-technology.com/data-insights/canada-natural-gas-production/}

_{3 - https://energy-information.canada.ca/en/energy-facts}

_{4 – https://www.iea.org/reports/world-energy-outlook-2024}

_{5 - https://corporate.exxonmobil.com/-/media/global/files/global-outlook/2024/global-outlook-executive-summary.pdf}

_{6 - https://www.shell.com/what-we-do/oil-and-natural-gas/liquefied-natural-gas-lng/lng-outlook-2024.html}

_{7 - https://www.ogj.com/general-interest/economics-markets/article/14297646/iea-world-oil-demand-scaling-to-record-highs}

_{8 - https://www.eenews.net/articles/global-gas-demand-to-hit-all-time-high-in-2024-report-finds/}

_{9 -  https://www.energyinst.org/statistical-review}

_{10 - https://x.com/SquawkCNBC/status/1576921977754902528?lang=en}

_{11 - https://www.canadianenergycentre.ca/755-billion-the-energy-sectors-revenue-contribution-to-canadian-governments-2000-2021/}

_{12 -  https://www.canadianenergycentre.ca/495-billion-in-government-revenues-from-the-canadian-oil-and-gas-industry-projected-over-next-decade/}

_{13 - https://www.capp.ca/en/energy-the-canadian-way/}

_{14 - https://macdonaldlaurier.ca/canada-resource-bounty-release/}

_{15 - https://www.fraserinstitute.org/blogs/energy-exports-continue-to-fuel-the-canadian-economy}