Rex Murphy is one of Canada’s greatest orators and defenders of its energy industry. During the Vancouver Resource Investment Conference, he made a passionate speech about the historical and economic importance of Canada’s resource industries. Underlying his argument was the need to reappreciate our resource industries and acknowledge its importance to Canada’s economic well-being.

Overlooked in the polarized debate about Canada’s energy industry is its contribution to our economic foundation. Canadians were pioneers at creating the technology, innovations and infrastructure necessary to develop and transport natural resources. Now, the very industries that supply today’s wealth and modern way of life are unfairly regulated and scrutinized. In recent years we have lost the ability to embrace our resource industries and recognize the immense contributions they have made to Canada’s prosperity.

Without our energy industry, we would not have the modern resources, technology and fundamentals of a prosperous society. As oil and gas pioneers we have experience and history that enables us to evolve and discover more efficient and sustainable methods of exploration and production. In doing so, we produce oil and gas under some of the highest safety, labour and environmental standards in the world (Tertzakian, 2018). Yet, the industries that support energy consumption and operate under these standards are constrained under intense criticism by policy makers and special interest groups.

There is no other industry in Canada more heavily regulated and scrutinized than our energy industry. Mr. Murphy said it best: “the very industries that helped us build Canada are now the only ones under a microscope, that have no friends, that policies work to repress.” A movement led by special interest groups has been successful at controlling a message about Canada’s energy industry with the goal to dissuade investment and landlock our resources. These groups have forgotten how this country was built and Canada’s role in the larger energy industry. Decisions made at the political level place regulatory burdens that restrain growth and takeaway capacity. It’s time that we revert to sensible regulations and appreciation of our energy industry that supports employment and contributes to Canada’s economic prosperity.

Sources:

Cambridge House International Inc. (January 25, 2019). Has Trudeau Destroyed Canada’s Resource Future? Retrieved from: https://bit.ly/2TAWJem

Tertzakian, Peter (June 12, 2018). Finally, a thumbs-up for Canadian oil — but will anybody notice? Financial Post. Retrieved from: https://bit.ly/2HO0qqF

Chris Slubicki, CEO of Modern Resources, recently gave a presentation at a Canadian Association of Petroleum Producers (“CAPP”) event on Canada’s energy industry and its position as a world leader in the ethical production of oil and natural gas. During his presentation, Slubicki argues the solution to reduce global emissions must be driven by reducing the consumption of hydrocarbons, rather than reducing the production of hydrocarbons.

Slubicki goes further by stating the most environmentally efficient hydrocarbon production, such as that of Canada’s energy industry, should be revered and encouraged to grow, displacing the more toxic forms of supply as to minimize the amount of pollution between today and the point in the future when the global economy no longer has to rely on hydrocarbons for fuel.

The message includes a call for action to Canada’s energy industry.  It needs to urgently communicate the truth about its vital role in the global economy and push back against those who want to see it shut-down. Canada’s reputation as an oil and gas producer is being tarnished by special interest groups who seek to dissuade investment to the point where our industry ceases to exist. These groups are successful at spreading a message that vilifies and demonizes Canada’s energy industry. We need to do better at standing up for our industry and now is the time to start.

The demand for oil as a source of energy is not going anywhere. Yes, it’s true in the future renewables will make up a larger portion of the world’s energy mix, but the world will still need oil and natural gas. In 2040 oil will remain the world’s largest source of energy at 27% (CAPP, 2018 Crude Oil Forecast) and “world demand for natural gas is expected to increase by 45%” (CAPP, 2018 Canada’s Natural Gas). Canada is vital for meeting this demand and supplying energy for the world, including producing increased volumes of more sustainable hydrocarbon fuels such as LNG. If we stop producing oil and natural gas other countries will fill the void, countries without regard for human rights, labour standards or the environment. A fundamental question needs to be asked, if not Canada then who? If our industry discontinues it will only benefit other oil and gas producing countries without ethical integrity developing those resources.

Canada is one of the world’s leader in the ethical production and oil and gas with safety, environmental, human rights and consultation standards that are among the highest in the world (Tertzakian, 2018). Our technological advancements and contributions at developing sustainable exploration and production activities are recognized and admired in the energy industry. It’s time we put ourselves on a pedestal about our environmental record and make it known the world needs more Canadian energy.

As proud participants in Canada’s energy industry by supplying well completion materials to frac operations in the WCSB, Source Energy Services agrees with Mr. Slubicki that “we are good at what we do here in Canada. We are damn good at what we do. We’re the best in the world, and we need to stand up for ourselves.” It’s a statement that as a company we will work to communicate and encourage our employees and peers to do the same. Let’s not let the special interest groups win. Let’s advance the conversation that there is no other country in the world that produces oil and natural gas more ethically and environmentally sustainable than Canada.

Sources

CAPP (January 22, 2019). Chris Slubicki Video: Navigating the Uncomfortable Reality of Energy and Environment in Canada. Retrieved from https://bit.ly/2H3lQAw

CAPP (June 12, 2018). 2018 Crude Oil Forecast, Markets and Transportation. Retrieved from https://bit.ly/2H2CSPd

CAPP (July 2018). Canada’s Natural Gas. Retrieved from https://bit.ly/2FxnVBz.

Tertzakian, Peter (June 12, 2018). Finally, a thumbs-up for Canadian oil — but will anybody notice? Financial Post. Retrieved from: https://bit.ly/2HO0qqF