As a global energy player, Alberta is no stranger to the peaks and valleys of the energy market, and few years can compare to 2020 in terms of challenge and change. As global demand for low-carbon technologies increases, investment follows, with business economics becoming increasingly tied to innovation and decarbonization.
Herein lies the promise of a bright energy future for Alberta and for Canada. By leveraging our abundant natural resources, advanced skillset, and innovative spirit, we can lead and benefit from the low-carbon economy, within and beyond our traditional sectors of strength.
On February 24, 2021, the Calgary Chamber will convene a virtual conversation with the energy industry leaders who are pursuing this historic opportunity. In advance of that conversation, here is a primer on the challenges, opportunities, and trends that are shaping the future of the energy industry.
Canada’s role in meeting global energy demand
Like many aspects of our daily lives, our demand for energy significantly changed this past year. According to the International Energy Agency, energy demand declined by an estimated average of 5 per cent in 2020 overall, with key fuels that Alberta produces also hovering around that mark:
While the COVID-19 pandemic is a significant shock and the road ahead may still be bumpy, the arrival of vaccines signifies that an eventual end point is in sight. Nevertheless, global energy demand will continue to shift into the future. The International Energy Agency has modelled the following overall global energy demand scenarios:
- A world where COVID-19 is gradually brought under control in 2021 and the global economy returns to pre-crisis levels; or
- A world where the pandemic persists and delays our recovery, and our existing climate policies remain; or
- A world where COVID-19 is gradually brought under control in 2021 and the global economy returns to pre-crisis levels, and ramped up and more serious clean energy policies and investment achieve sustainable energy objectives, including the Paris Agreement, energy access, and air quality goals.
These predictions speak to the global need for a wide variety of energy sources. Canada is well-positioned to meet this demand, given the breadth and depth of our energy industry:
