Canada’s oil and natural gas industry: positive news in uncertain times

by Editorial Staff | July 29, 2022
a pump jack on oil fields

Rising energy prices and energy security concerns, extreme weather events and the tragic conflict in Ukraine – today’s headlines raise issues and worries. Many Canadians find comfort in nature and outdoor pursuits, yet global concerns are never far from our thoughts.

In these uncertain times, the Canadian Association of Petroleum Producers (CAPP) has positive news to share: Canada’s oil and natural gas producers are committed to environmental solutions especially reducing emissions, managing water use, and strong land stewardship. This focus on responsible development ensures Canadians have access to safe, reliable, responsibly produced energy for our homes, businesses, and industries.

Natural gas in rural Ontario

Here’s a great example: through its Natural Gas Expansion Program, the Government of Ontario is increasing access to natural gas in rural and remote communities in the province. In 2021, the provincial government announced Phase Two of the program, allocating $234 million to support 8,750 connections in 43 rural, northern and Indigenous communities, in addition to the 9,000 customers across 16 communities connected in Phase One. Some households could save up to $1,500 a year by using natural gas for heating instead of other fuel sources, while the average business or farm is expected to save 30 percent annually. 

Clearing the air: reducing greenhouse gas emissions

Oil and natural gas producers are dedicated to reducing emissions. For example, the industry is on track to meet provincial and federal regulations that aim to reduce methane emissions (methane is a potent greenhouse gas).

Many innovative and practical technologies are being developed and deployed.

In the oil sands, operators are actively cutting emissions intensity (the volume of carbon dioxide emitted per barrel of oil produced). Building on investment and innovation, overall emissions intensity is projected to decline up to 28 per cent while production could grow by more than a million barrels per day by 2035. Over the past decade, emissions intensity declined by 20 per cent – making oil sands emissions intensity comparable to other North American crudes.

Energy security

While renewable energy sources are becoming more important in the energy mix, demand for oil and natural gas will continue for decades. According to the International Energy Agency’s (IEA) most recent examination of global energy trends (released in October 2021) the world will continue to need at least 100 million barrels of oil a day in 2050 to meet energy needs. 

The IEA also noted that countries are not investing enough in resource development to meet these future energy demands. In other words, worldwide production may not keep up with demand. With the widespread ban on Russian oil and natural gas, we are already seeing energy shortfalls, supply problems, and higher prices. CAPP advocates to grow Canadian production to serve both domestic needs and to provide reliable, affordable, and clean energy supplies for our international allies and trading partners.

Moving forward

Throughout this challenging time in history, Canadians share something special. From coast to coast to coast, we have nature and beauty at our doorstep, offering a myriad of opportunities for outdoor pursuits and recreation. As we treasure these experiences, the responsible stewardship of our country’s natural environment is a value the oil and natural gas industry shares with Canadians. 

About CAPP

CAPP represents companies, large and small, that explore for, develop, and produce natural gas and oil throughout Canada. CAPP’s member companies produce about 80 percent of Canada’s natural gas and oil and associate members provide a wide range of supporting services. CAPP is a solution-oriented partner to the world’s needs for affordable, clean, safe, and secure energy, and an important part of a national industry.

CAPP’s mission, on behalf of the Canadian upstream oil and natural gas industry, is to advocate for and enable economic competitiveness, with environmentally and socially responsible performance. CAPP is dedicated to advancing reconciliation with Indigenous peoples, and is committed to ensuring Canada is positioned as the supplier of choice in a world that demands a lower-carbon energy future.

Posted as a paid partnership between Ontario OUT of DOORS and the Canadian Association of Petroleum Producers.

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  1. Don Kwasny wrote: Great that Ontario is getting natural gas to rural areas.