Phasing out Oil and Gas is a mistake

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Dear Prime Minister Trudeau,

The world is suffering through an unprecedented energy crisis, with some of Canada’s closest friends and allies among the countries most at risk of social and economic hardship.

Britons are being warned of the potential for rolling blackouts on the coldest winter nights, rotating industrial shutdowns are being planned in Germany, while the Polish government is considering distributing anti-smog masks for people forced to burn trash in their homes through the winter.

That’s why I’m stunned and disappointed to learn that you believe this crisis is a clear signal for a rapid phase-out of Canada’s world-class oil and gas industry.

Let’s be clear: Given the global situation, taking such extraordinary and unwarranted steps won’t just hurt Canadians, it will hurt our global democratic allies as well.  It will further empower nations that don’t share Canada’s fundamental beliefs in human rights, Indigenous opportunity, environmental progress and peace.

Russia’s unprovoked invasion of Ukraine and subsequent weaponization of its energy has revealed not only how dependent Europe is on Russian energy, but how nations built around renewables are not currently capable of powering a modern economy.
In many parts of Europe, that led to desperate measures, including firing up mothballed coal plants, one of the least climate-friendly options available, to ensure their citizens can endure the cold winter months ahead.

Incredibly, Canada’s democratic allies have even made direct appeals for our help displace their reliance on Russian oil and gas, only to be rebuffed.

Over the summer, German Chancellor Olaf Scholz visited Canada and made a frank appeal for liquefied natural gas exports from Canada to help lessen the impacts of reducing its dependence on Russian natural gas. Despite being one of the world’s most eager adopters of renewable energy, Scholz made it very clear that Germany still needs an abundant supply of reliable natural gas, and Canada is seen as a supplier of choice.

“As Germany is moving away from Russian energy at warp speed, Canada is our partner of choice,” Scholz said. “For now, this means increasing our LNG imports. We hope that Canadian LNG will play a major role in this.”

One of the leading architects of Germany’s rapid transition to renewables also touted the need for Canadian energy during a recent speech in Calgary.

“The challenge today is that even if we expand the capacities of renewable energies in an unprecedented way, we still will need classical traditional energies like oil and gas and nuclear,” said Peter Altmaier, former minister for economic affairs and energy from 2018 to 2021.

“I can tell you that people in Germany have big confidence in Canada and I’m convinced that energy that is produced, fossil energy, that is produced in Canada is in a more environmentally friendly way produced than in most other countries around the world.”

Here are some key points to consider:
•	According to the International Energy Agency, oil and gas will still make up half of world energy supply in 2050, a reduction of just 3% from 2021. Renewables will double to 26% over the same period.
•	A worldwide LNG shortage had already been anticipated by the middle of this decade with global demand on pace to double by 2040.
•	European democracies remain reliant on authoritarian states for critical energy imports. In 2019, more than two-thirds of oil imports to European Union countries came from nations deemed “not free” by Washington-based think tank Freedom House. As for natural gas imports to the EU, some 40% came from “not free" countries.
•	Compared to the world’s top oil reserve holders, analysis of independent rankings found that Canada ranks number 1 when it comes to the three critical metrics of environmental performance, social progress and governance
•	According to the International Energy Agency, using natural gas transported as LNG instead of coal to fuel power plants can reduce emissions by about 50% on average. Canadian LNG could decrease emissions even further, by up to 62%, according to a 2020 study.

Canada is blessed with abundant natural resources as well as an oil and gas industry committed to environmental and social excellence. That’s why the majority of oil sands producers have committed to achieving net zero operations by 2050, and just last week pledged $16.5 billion to build a massive carbon capture and storage hub.

In every credible analysis, the world will continue to need oil and gas for decades to come. And the conflict in Europe has highlighted the critical importance of responsible suppliers like Canada to reduce reliance on energy supplied by authoritarian states willing to use their resources for geopolitical advantage.

I ask that you reconsider your position on phasing out fossil fuels, and actively support and promote Canada’s oil and gas sector to help our allies through the current energy crisis, as well as becoming a long-term solution to power the global energy transformation. 

Respectfully submitted,
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