Canada is the democratic world’s largest exporter of oil and natural gas, almost exclusively to the United States, where it supplies well over 50% of USA’s oil imports, but a lessening percentage of their natural gas needs because of the remarkable developments in shale gas and shale oil development over the last 15 years in North America.
The increasing demand for natural gas around the world as been well-understood for 20 years as a means of reducing emissions as coal-fired plants are replaced with combined-cycle gas turbines (CCGT), especially in the USA and Europe. Ontario encouraged development of CCGTs to go along with the cessation of coal-fired electrical power plants some years ago. Germany developed many CCGTs as they attempted to phase out coal, while also shutting down their nuclear power capabilities. Of course, this natural gas came mostly from Russia; a dubious bargain.
Many experts believe that natural gas – a remarkably clean, safe and non-polluting fuel (except for CO2 emissions that are 50% the level of coal) – is a key to more rapid shutdown of coal plants worldwide, reducing particulate pollution almost to zero as well as cutting down massively on CO2 emissions and other noxious side-effects (e.g., tailings ponds, particulate matter, de-sulfurization sludges, mining accidents, surface mine site environmental devastation…).
The natural gas transmission systems can, as hydrogen technology gradually emerges, be repurposed for gas/H2 mixtures, and eventually to H2 transmission, or the transmission of a hydrogen carrier such as methanol. So, in addition to being the quickest way to reduce greenhouse gas emissions, a natural gas transmission network may well be a pre-investment in an emerging H2 technology.
These things were all clearly known 15-20 years ago, and they presented a huge opportunity for Canada:
Canada has enough natural gas for well over 1000 years at current rates of production. Likely, with current technology, this figure is far too low; 1000 years is “proven” resources.
New development methods (multi-well pads, horizontal drilling) have reduced the surface impact of development by a factor of five, in terms of roads, pipelines, drilling pads, and treatment sites. Also, site contamination for natural gas development is almost non-existent, given Canada’s regulatory policies.
The vast majority of the natural gas that might serve export markets is found in areas of low population.
Canada has the TransCanada pipeline crossing from BC/AB sources to Québec. It is now seriously underutilized because the US doesn’t need Canadian natural gas nearly as much as it used to, and indeed exports a lot of natural gas to Ontario and Québec (displacing Canadian gas) and to the Maritimes.
So, the increasing demand in Europe, Japan, S. Korea, and elsewhere was a remarkable opportunity that many were thrilled at about 10-15 years ago: helping the world reduce emissions and other pollution sources while benefiting Canadians in terms of royalties and jobs. So… What happened?
New Brunswick effectively banned development of one of the most remarkable shale gas deposits in the east – the thick Frederic Brook shale gas deposit. NB still burns a large amount of imported coal for power.
Nova Scotia effectively banned development of a resource that has not been well-defined, but is likely of commercially interesting size and very well located. NS still burns a lot of imported coal for power.
Québec effectively banned natural gas development in the St Laurence Lowlands and in Anticosti Island (population 225).
Newfoundland and Labrador effectively ceased any potential developments on the SW coast of Newfoundland for shale oil and shale gas development.
Local indigenous groups in British Columbia and their non-indigenous supporters have targeted natural gas pipeline development from the gas fields in northeast BC to the coast with attacks on sites and equipment, blockades, and threats to workers.
The Federal government stopped the Gateway project for pipelines to bring oil to terminals on the BC coast, and has seemed quite unenthusiastic about promoting rapid development of LNG exports. Anywhere.
Québec has recently shut down the possibility of an LNG terminal, and in Nova Scotia, another proposal for an LNG terminal has not moved forward.
Meanwhile, Ontario, Québec and the Maritimes have increased their imports of American natural gas, and at the same time Ontario and Québec have greatly reduced their purchases from western Canada, choosing to purchase cheaper American natural gas.
And, an increasing bureaucratic load and permitting complexity suppressed development interest (see below).
We could have been the major provider of natural gas to Europe, instead of Russia. A bit late to wring our hands to be sure.
My view is that while we continue to decarbonize our energy supplies, we should also signal to the world that we can be a vital, democratic supplier of vast amounts of natural gas-based energy during this generational energy transition. But, we seem incapable of acting, and this lack of action is certainly not benefiting the world today, much less Canada. We also continue having to import oil in Quebec and the Atlantic Provinces, despite our national resources, and an industry that has close to the very best environmental records of any nation in the world.
The article below is from an oil and gas industry proponent. Perhaps this unfortunate and ill-conceived invasion will cause Canadians to realize that they are part of a world energy economy to which we have responsibilities.
Or else, we can dither and waver and let our allies struggle with energy insecurity and even slavery. Not the outcome I want.
Maurice