The World Continues to Need Oil & Gas; Canada Should Be Part of That Future

Oil & Gas Demand in Asia

The authors cite the March cancellation of a major liquefied natural gas (LNG) project in Haiphong, Vietnam, where the proponents look to pursue renewables instead, as evidence that Asia is abandoning natural gas. But others are moving ahead, including the $2.3 billion Quynh Lap LNG facility announced in May, which is expected to support industrial development, including energy-intensive AI-related infrastructure ^[1].

This isn’t a sign that the region is turning its back on LNG; rather, it reflects that countries are pursuing multiple energy sources simultaneously while recognizing the strategic role of natural gas. The latest industry outlook from February found that global LNG consumption could grow 45% to 85% by 2050, with Asia accounting for the majority of that increase in demand ^[2].

The same is true in South Korea. While the authors quote President Lee Jae Myung about reducing reliance on fossil fuels, South Korea remains heavily dependent on oil and gas imports and is seeking greater diversification of its energy supply. Recent reports indicate the country is moving to triple crude imports from Canada this year while also increasing LNG purchases from Canadian export projects ^[3].

In a world shaped by supply shocks and geopolitical instability, Canada’s role as a safe, dependable energy supplier is not less relevant; if anything, it has become more strategically important.

The World’s Energy Systems are Shifting

This is where the author’s broader argument about conventional energy demand becomes even less convincing. What the world has seen in recent years is not that it no longer needs oil and gas, but that countries increasingly want to source their energy from stable, democratic, and trusted suppliers. Wars in Eastern Europe and the Middle East have reshaped global energy flows, reminding sovereign nations everywhere that energy security matters. And for years, countries have been asking Canada to step up and help meet that need. We agree with the authors that the world’s energy systems are changing, but rather in ways that strengthen Canada’s position as a go-to energy supplier.

They also cite electric vehicle adoption in India and China as evidence that global oil consumption is in decline, but the facts paint a much different picture.

India is expected to become the largest contributor to global oil demand growth, with its government estimating an additional 8.2 million barrels per day of domestic consumption through 2050 ^[4]. Last month, India’s High Commissioner to Canada said his country is willing to buy as much Canadian-made oil and natural gas as Canada can provide.

In China, EV use is rapidly growing, but the country is still expected to remain one of the world’s leading oil consumers for many years as domestic consumption shifts toward greater concentration in petrochemical feedstocks and industrial uses ^[4]. Like India, China has also said in discussions with Canada’s Energy Minister Tim Hodgson that it wants more Canadian oil and natural gas.

Peak Oil Demand Predictions

The authors also cite “peak oil,” claims which should be treated cautiously. We have heard for years that global demand is about to peak and permanently decline, yet those forecasts keep getting revised further into the future.

The pattern is familiar: confident predictions are made, global demand proves more resilient than expected, and timelines for “peak oil” are pushed back – again, and again. This tells us something important: the world’s energy needs are more complex and enduring than many are willing to grasp. Some of our foremost energy experts point towards the world undergoing an “energy addition” – not a “transition,” like the authors suggest ^[5].

It is critical to remember that oil and natural gas are key inputs in industrial and manufacturing processes across the economy, critical to the production of steel, cement, fertilizer, plastics, chemicals, medical supplies, and thousands of everyday products that we all depend on. Fossil fuels still accounted for 87% of the global energy mix in 2024 ^[6], while several projections, including the IEA's latest World Energy Outlook, suggest that oil and gas demand could continue to grow for decades yet.

Canada is a Leader in Renewables

The authors also omit Canada’s leadership in renewables while claiming we’re laggards. But we’re the sixth-largest producer of renewable energy in the world, rank third for hydroelectricity production, and ninth for onshore wind capacity ^[7].

Whether it's mega hydro dams in British Columbia, large solar projects in Alberta, or offshore wind farms in the Atlantic provinces, Canada isn’t slowing down on the development and deployment of renewable energy. In fact, we’re a global leader.

The reality is that Canada – and the world – will need all forms of energy, from oil and gas to wind and solar to nuclear and hydro, to meet growing demand. In Canada alone, electricity demand could double or triple by 2050 ^[8]. Today, provincial and federal governments are recognizing that fact with policies supportive of new nuclear, natural gas, and renewable generation capacity across the country.

We’ve Heard These Arguments Before

For more than a decade, opponents of oil and gas development have told Canadians that building new energy infrastructure would leave us with stranded assets and a weaker economic future. And while major projects were delayed or blocked here at home, other countries expanded their exports, attracted investment, and reaped the immense economic benefits that come with supplying the energy the world needs.

Think of Northern Gateway, Energy East, or any one of the dozens of LNG export facilities on both coastlines. In BC alone, there were once 18 proposed LNG export projects.

Imagine the additional economic prosperity Canadians would have enjoyed if any number of these developments had made it past the finish line. The economic impact of the Northern Gateway pipeline alone was estimated at $300 billion.

It’s time we stopped listening to those who say that Canadians need to leave our resources in the ground. We tried that for the past decade. We should start listening to the global leaders who have repeatedly asked us for more of our energy, for a change.

In the words of Fatih Birol, Executive Director of the International Energy Agency, during his visit to Canada last month:

“I wish there were a few more Canadas in the world, so that we can have a much more reliable and sustainable global energy system.”

"When I look at the world, the energy-hungry world, it needs Canada more than ever. And I believe Canada also needs the world."

The world continues to need oil and natural gas, and more countries are looking for secure suppliers they can trust. If Canada wants a stronger economy, greater resilience, and a bigger role on the world stage, then we need to develop our resources and build the infrastructure to deliver them. Doing so would mean creating good-paying jobs here at home, generating important tax and royalty revenues for our governments, and building a stronger, more economically resilient country.

The future belongs to countries willing to step up. For Canada, it’s an opportunity we cannot miss.

New polling has found that nearly four in five British Columbians (78%) agree Canada should increase LNG exports to Asia and Europe.

That’s a strong message in support of trade diversification, economic growth, and sharing Canadian-made energy with the world.

Let's keep the… pic.twitter.com/sJpOQGVFA5

— Canada Action (@CanadaAction) June 19, 2026

SOURCES:

_{1 - https://www.offshore-energy.biz/2-3-billion-lng-project-breaks-ground-in-southeast-asia/}

_{2 - https://www.shell.com/investors/investor-presentations/_jcr_content/root/main/section_1529014047_c_540020954/tabs/tab_1774293805/text_copy_copy_16298_313993862/links/item0.stream/1773644841391/3328e7b37c74c7757cb1c3756fb96ad299de4988/lng-portfolio-strategic-spotlight-2026.pdf}

_{3 - https://oilprice.com/Latest-Energy-News/World-News/South-Korea-Locks-In-Canadian-Crude-LNG-in-Sweeping-Supply-Overhaul.html}

_{4 - https://www.stonex.com/en/insights/india-is-quietly-becoming-oil-s-biggest-growth-story/}

_{5 - https://www.foreignaffairs.com/united-states/troubled-energy-transition-yergin-orszag-arya}

_{6 - https://www.energyinst.org/statistical-review}

_{7 - https://energy-information.canada.ca/sites/default/files/2026-05/energy-fact-book-spring-2026.pdf}

_{8 - https://cna.ca/2025/09/15/canada-faces-unprecedented-electricity-demand-growth-nuclear-energy-critical-to-meeting-2050-needs/}