Canada should maximize oil production to fund a clean energy transition, argues a recent Saskatchewan policy paper.James Warren, adjunct professor of environmental sociology at the University of Regina made the argument in a policy brief for the Johnson-Shoyama School of Public Policy, which is a joint effort of the University of Regina and the University of Saskatchewan.In "Maximizing Canadian oil production and exports over the medium-term could help reduce CO2 emissions for the long-term," Warren says a growing number of investment and finance analysts believe one can support the environment and oil production at the same time."They argue a win-win strategy is gaining traction which holds that maximizing Canadian oil and gas production and exports over the medium-term can contribute to reducing CO2 emissions in Canada over the long-term," Warren explains.A 2023 report by National Bank Financial Markets (NBFM), a Montreal-based financial consultancy, described how Norway used oil and gas revenues to build a sovereign wealth fund worth $1.3 trillion USD.The fund allows Norway to buy offsetting carbon credits. In 2022 the Norwegian government provided every citizen who purchased a new electric vehicle with a $25,000 USD subsidy. Eighty percent of new vehicles sold in Norway in 2022 were either full electric or hybrids.In 2022, Climate Watch ranked Norway eighth-best in the world for limiting greenhouse gas emissions, climate change policies, and renewable energy development. Yet, the nation is also the world's eighth largest oil exporter. Its biggest oil companies are spending billions of dollars to drill in the North and Norwegian seas."Canada should be leaving Norway in the dust. Canada exports more than twice as much oil as Norway (but less natural gas)," Warren writes.Warren says Canada should set up a green energy transition fund modelled on the pre-1987 Alberta Heritage Fund model."The enabling legislation for a Canadian green transition fund could specify the types of low emissions investments fund managers could make," Warren explains. "Ideally, the green transition fund would provide a significant portion of the capital required to realize Canada’s climate change goals."Federal legislation that currently smothers development must be addressed, Warren insists. He said if Trans Mountain, Northern Gateway and Energy Pipelines had been up and running from full capacity from 2015 through to 2022, an additional $292 billion in export revenues would have been earned. He says regulation is still a greater barrier than demand."Before any more oil export pipelines and port facilities are built in Canada, investors will require assurances that the approval process will be far less onerous, more predictable and much more expeditious than has been the case under the Impact Assessment Act and Energy Regulator Act. In addition, there would have to be guarantees in place to ensure new pipelines are licensed to operate for a reasonable period of time," Warren explains.Warren says the technology to do oil extraction with minimal carbon footprint is better than ever, but Canadians can no longer hear about it due to federal legislation that stops the oil companies from publicizing such progress.Warren acknowledges the oil production maximization strategy will be a tough sell."Admittedly, proponents of maximization face an uphill battle. Their opponents in the environmental movement and federal government claim it sounds like a “drink your way to sobriety” delusion," Warren wrote. "[C]onvincing the producing provinces to contribute a portion of their constitutionally protected revenue streams could be a significant challenge."
Canada should maximize oil production to fund a clean energy transition, argues a recent Saskatchewan policy paper.James Warren, adjunct professor of environmental sociology at the University of Regina made the argument in a policy brief for the Johnson-Shoyama School of Public Policy, which is a joint effort of the University of Regina and the University of Saskatchewan.In "Maximizing Canadian oil production and exports over the medium-term could help reduce CO2 emissions for the long-term," Warren says a growing number of investment and finance analysts believe one can support the environment and oil production at the same time."They argue a win-win strategy is gaining traction which holds that maximizing Canadian oil and gas production and exports over the medium-term can contribute to reducing CO2 emissions in Canada over the long-term," Warren explains.A 2023 report by National Bank Financial Markets (NBFM), a Montreal-based financial consultancy, described how Norway used oil and gas revenues to build a sovereign wealth fund worth $1.3 trillion USD.The fund allows Norway to buy offsetting carbon credits. In 2022 the Norwegian government provided every citizen who purchased a new electric vehicle with a $25,000 USD subsidy. Eighty percent of new vehicles sold in Norway in 2022 were either full electric or hybrids.In 2022, Climate Watch ranked Norway eighth-best in the world for limiting greenhouse gas emissions, climate change policies, and renewable energy development. Yet, the nation is also the world's eighth largest oil exporter. Its biggest oil companies are spending billions of dollars to drill in the North and Norwegian seas."Canada should be leaving Norway in the dust. Canada exports more than twice as much oil as Norway (but less natural gas)," Warren writes.Warren says Canada should set up a green energy transition fund modelled on the pre-1987 Alberta Heritage Fund model."The enabling legislation for a Canadian green transition fund could specify the types of low emissions investments fund managers could make," Warren explains. "Ideally, the green transition fund would provide a significant portion of the capital required to realize Canada’s climate change goals."Federal legislation that currently smothers development must be addressed, Warren insists. He said if Trans Mountain, Northern Gateway and Energy Pipelines had been up and running from full capacity from 2015 through to 2022, an additional $292 billion in export revenues would have been earned. He says regulation is still a greater barrier than demand."Before any more oil export pipelines and port facilities are built in Canada, investors will require assurances that the approval process will be far less onerous, more predictable and much more expeditious than has been the case under the Impact Assessment Act and Energy Regulator Act. In addition, there would have to be guarantees in place to ensure new pipelines are licensed to operate for a reasonable period of time," Warren explains.Warren says the technology to do oil extraction with minimal carbon footprint is better than ever, but Canadians can no longer hear about it due to federal legislation that stops the oil companies from publicizing such progress.Warren acknowledges the oil production maximization strategy will be a tough sell."Admittedly, proponents of maximization face an uphill battle. Their opponents in the environmental movement and federal government claim it sounds like a “drink your way to sobriety” delusion," Warren wrote. "[C]onvincing the producing provinces to contribute a portion of their constitutionally protected revenue streams could be a significant challenge."
