Canadian Energy Weekly Round-Up: January 6
Here are the top news stories covering Canada’s energy landscape:
The Developing World’s Energy Needs Are Expanding—That’s Good News for Canada
The need for reliable oil and natural gas is continuing to increase in the developing world. According to the International Energy Agency, energy use has increased by 80 percent in Southeast Asia since 2000. This should be good news for Canada, which has a competitive advantage for exploring and developing oil and natural gas resources given its large talent pool and rich natural resources.
Unfortunately, misguided investor scrutiny of the oil and natural gas industry may chill investment at a crucial time. Recently, former Bank of Canada governor Mark Carney—who will join the United Nations as a special envoy on climate change—called for banks and financial institutions to demand “better disclosure and stricture limits on oil, gas and coal investments in order to avoid significant global warming.” This advice was met with skepticism from Tristan Goodman, the president of the Explorers and Producers Association of Canada, who pointed out that “Canadian oil and gas companies have been scrutinized at a level their competitors in other countries have not, which is a failing of the approach by those banks” who have done “an abysmal job.”
However, Goodman acknowledged that Carney’s call for more scrutiny may implement better global guidelines, which would be more welcome by Canadian energy companies who have positioned Canada as the top major oil and natural gas producing nation in terms of environmental performance.
Natural Gas Electricity is Overtaking Traditional Fuel Sources—That’s Good News for Canada and the World
Although coal still generates the most electricity worldwide, countries are increasingly turning to natural gas for electricity generation, a switch which has positive impacts on emissions. Emissions reduction is positive news for the entire world, and an increase in use of natural gas can be doubly positive for Canadians, who have huge potential with their export of liquefied natural gas.
Canada’s investments in LNG are also further helping reduce emissions. LNG Canada, a large-scale project which will bring Canadian natural gas to Asian markets, will receive hydro-electric power from BC Hydro, making it the “lowest carbon intensity of any large scale LNG plant operating in the world today.”
For more Canadian energy news and setting the record straight on the day’s top stories about the oil and natural gas industry, visit Canadian Energy Network.