5 Positive Impacts of Canadian Energy Around the World

Why should young Canadians care about Canada’s energy exports? The answer is simple: the world needs Canadian energy, and Canadians need a strong energy sector. 

The energy sector accounts for 10 per cent of Canada’s gross domestic product (GDP) and employs approximately 300,000 people from coast to coast – it’s one of the country’s most important economic sectors. This includes oil and gas production in western Canada, electricity production and transmission in Ontario and Quebec, mining in British Columbia, and other viable projects in the Atlantic provinces. 

Many young people are aware of Canada’s strong energy sector. But what happens to the energy Canada exports? Why does it matter? 

Here are five positive impacts of Canada’s energy exports around the world: 

1) Canada Can Replace Saudi Oil Imports to the US

Saudi Arabia is one of the world’s largest crude oil producers. It’s also one of the most infamously criticized producers, with many experts deeming it unethical. As the most influential member of the Organization of Petroleum Exporting Countries (OPEC). Saudi Arabia is far from being the world’s most virtuous or responsible energy producer.  

The United States has imported millions of barrels of crude oil from Saudi Arabia annually for decades. Recent analysis suggests that US reliance on Saudi oil is on the outs, though, with 2024 imports marking a 40-year low. It seems that US-based refineries have been looking elsewhere for their crude oil, and will continue to do so going forward. 

What does this mean for Canada?

Canada surpassed Saudi Arabia as the United States’ biggest oil trading partner back in 2004. Since then, hundreds of millions of barrels of crude oil produced in western Canada have been transported south to US refineries.  

But, as Saudi Arabia’s golden days as a big-time exporter to the US wind down, Canada’s US market share is primed to increase even more. Though the Canada-US energy relationship is already massive as it is, the recent and continued increase of Canadian imports to the US is said to be reshaping the global oil map. 

US-produced gasoline and other refined petroleum products (US refineries’ output after Canadian crude oil is used as an input) are exported to markets around the world, with a majority of gasoline exports (500,000 barrels every day) heading to Mexico. Canada’s continued oil relationship with the US ensures that drivers in Mexico, propane users in Asia, and countless others around the world have responsibly-produced energy to fuel their lives.  

2) Canadian LNG Can Satisfy Growing Global Demand

Our parents and grandparents saw the rise of oil as one of the most important global commodities of the 20th century. Though oil is still around, liquified natural gas (LNG) can be the next major global energy commodity.  

Demand for LNG around the world is at an all-time high, and is only set to increase going forward. Asian countries are experiencing the biggest appetite for LNG, with India, China, and southeast Asia driving a 35 per cent increase in demand by 2030.  

Luckily, Canada is well-positioned to satisfy the global hunger for LNG. 

You may have heard of the plethora of LNG projects in various stages of development in British Columbia and Alberta. These projects – including Ksi Lisims LNG, LNG Canada, and Cedar LNG – are all aimed at moving Canadian-produced LNG from in-land natural gas fields to BC’s coast, where they can be shipped to Asia and elsewhere around the world.  

The most advanced project (by a long shot) is LNG Canada, which will begin shipping product from its Kitimat terminal this year. Investment in LNG Canada totals $40 billion and will provide jobs and long-term prosperity for the Haisla First Nation and thousands of BC residents.  

Through LNG Canada and the many other proposed projects (both pipelines and coastal facilities), Canada has the opportunity to supply responsibly produced LNG to the world. 

3) Ontario and Quebec Continue to Export Hydroelectricity

Outside of oil and gas, many young Canadians aren’t aware that Canada is a massive producer of hydroelectricity as well. 

Hydroelectric energy is created by harnessing the power of moving water, like with dams and turbines. Canada is the third largest hydroelectricity producer in the world, with 595 hydroelectric stations across the country in 2021.  

Canadians consume much of the hydroelectricity the country produces, with hydropower accounting for almost three-fifths of total electricity generation. If you live in BC or Quebec, it’s very likely your home is powered by hydroelectricity. 

However, many people aren’t aware that Canada’s hydroelectric power stations also produce electricity for consumers in the US. When enough water flows through the hydro stations and local demand is satisfied, utility companies across Canada are able to send electricity south to the US. Surplus electricity exports help utility companies pay their debts and lower utility rates for Canadian customers. 

For example, Hydro-Quebec (Quebec’s hydroelectricity utility) recently added to its transmission network to better serve its customers in New York and Massachusetts. In BC, water running west from the Rocky Mountains is converted to electricity that serves consumers as far away as Oregon and California. In doing so, the hydropower sector also keeps Canadian electricity flowing, employs thousands, and contributes to the prosperity of Indigenous communities.  

4) Saskatchewan Can Fuel Global Nuclear Power Needs

It’s the land of straight roads, flat land, and Colter Wall. But what if I told you Saskatchewan could also be central to future nuclear development around the world? The key: uranium.  

Uranium, discovered back in the 18th century, is an extremely dense heavy metal. It is central to nuclear power generation – the uranium atoms are split, creating heat which is converted via steam into electricity.  

Canada currently receives 15 per cent of its total electricity from nuclear power stations in Ontario and New Brunswick. Globally, the demand for nuclear energy is increasing substantially. This is especially the case in Europe, where 20 per cent of electricity already comes from nuclear power. 

So, how does Saskatchewan factor in? Though it’s known as the “breadbasket of Canada,” Saskatchewan is also home to Canada’s rich uranium reserves. Canada is the world’s second largest uranium producer behind Kazakhstan, and has proven reserves beyond 500,000 tonnes. Saskatchewan’s uranium mines are some of the largest operations of their kind in the world and benefit from deposits 100 times more concentrated than the global average.   

Saskatchewan is in a great spot moving forward. With its uranium mining sector providing jobs for thousands and bringing prosperity to many communities.

5) Canada Leads by Example

One of Canada’s major contributions to the global energy landscape is its role in resource development. 

In the oil and gas sector, regulatory reforms, technological innovation, and a trend towards harnessing the country’s LNG potential place Canada at the forefront of a multi-trillion dollar global industry. Additionally, meaningful relationships between industry and local Indigenous communities are continuing to strengthen through initiatives like the Alberta Indigenous Opportunities Corporation.  

Concerning nuclear energy, we know that Saskatchewan places Canada at the forefront of uranium production. Home to the CANDU nuclear reactor, Canada has contributed cutting edge research and development to the international nuclear power community since the late 1950s.

With hydropower, Canada practices what it preaches. Canadian utility companies and governments invest billions each year into more efficient hydropower solutions.

From coast to coast, Canada continues to power the world with energy produced efficiently. As energy demands shift in major Asian and European markets, Canada can capitalize on its breadth of natural resources to respond to global changes. Now is a better time than ever for young Canadians to get involved with the country’s dynamic energy sector.