World Petroleum Congress to tackle transforming the energy landscape (thestar.com)
Calgary, and Alberta, are about to play host to the world’s biggest energy players at a time when the Canadian oil and natural gas sector is at a crossroads.
The 24th World Petroleum Congress (WPC), whose theme is “Energy Transition: The Path to Net Zero” is getsunderway next week bringing with more than 5,000 delegates from around the globe examining all aspects of energy production and use — from transportation to consumer products — in a country that is at odds with itself when it comes to reaching net zero by 2050.
Much has changed since 2000 when Calgary first hosted the event. Then the focus was on the size of oil and gas reserves, commodity prices and operational efficiency. Canada’s oil and natural gas companies have since invested in technologies to improve environmental performance. Many of Canada’s oil and natural gas companies have also led the way in ensuring that Indigenous communities are at the table and benefit from responsible resource development.
Even with these gains, the energy sector continues to build upon its performance as it transforms the energy landscape. Canada must remain competitive so we can continue to produce the energy our world needs.
We see enormous potential for Canada to play a meaningful role in supplying responsibly produced energy to meet rising domestic and global demand while materially reducing emissions as the world faces the realities of climate change.
The caveat is that we need competitive policies and regulations for Canada to be successful in pursuing the goals of decarbonization while also ensuring Canadian energy self-sufficiency is not compromised and the quality of life we have come to enjoy is not diminished.
The energy world has come to visit — and many of the visitors come from countries that have put in place significant incentives and investments to drive the decarbonization of oil and gas production, amounting to trillions of dollars.
Closer to home, the [U.S. Inflation Reduction Act](https://home.treasury.gov/news/featured-stories/the-inflation-reduction-act-and-us-business-investment#:~:text=The%20Inflation%20Reduction%20Act%20(IRA,and%20strengthen%20long-term%20growth.) has significantly advanced the energy transition with its incentive-based approach attracting $132 billion (U.S.) in investment, creating 270 clean tech companies and 86,000 new jobs. This includes Canadian companies, choosing to go south, taking with them their technology, talent, and capital, rather than remaining in Canada’s uncertain energy landscape. A recent example is Squamish-based Carbon Engineering, which, after entering into a pilot project with Occidental Petroleum in the Permian Basin, has agreed to be acquired by the energy company for $1.1 billion (U.S.). There is no doubt that the uncertainty in Canada’s regulatory and policy environment and the attractiveness of the IRA not only played a role in driving this decision but in making the economics work.
The challenge for Canada’s energy sector, its regulators, and its governments, lies is the diversity and breadth of the sector itself. Canada has a vast and diverse resource base — from conventional oil to natural gas production to the oilsands. Policy and regulation need to recognize the diversity of these assets to enable the ongoing development of the resources the world needs.
Putting in place mechanisms to support Carbon Capture Utilization and Storage and meaningfully supporting research, development, and the scaling up of technologies developed to mitigate emissions would ensure Canada remains competitive as an energy producing jurisdiction.
Similarly, Canada has enormous potential as an exporter of liquefied natural gas (LNG), which will displace the rapid expansion of coal fired power in both developed and developing countries. Carbon molecules don’t have passports — which is why the LNG exports offer such tremendous opportunity to both displace more carbon intensive sources of electricity such as coal and provide energy security for countries like Japan and South Korea that rely exclusively on imports.
The impact of decisions made by governments today will reverberate for generations to come. The World Petroleum Congress offers Canada, and Calgary, the opportunity to tell its energy story to the world. It is one of continuous evolution and innovation.
From Leduc Number One in 1947, the development of hydraulic fracturing, to the application of steam-assisted gravity drainage to unlock oilsands potential and now, the shift to decarbonization through the growth of clean tech, Canada’s energy sector is positioned to be a low carbon, reliable energy supplier to the world, contributing to continued Canadian economic growth and energy security.
This will be highlighted to delegates and government officials at the 24th World Petroleum Congress.
Deborah Yedlin, President and CEO of the Calgary Chamber of Commerce, and Lisa Baiton, President and CEO of the Canadian Association of Petroleum Producers.
