Heather Exner-Pirot : The Energy Crisis and How it Will Affect Canada
Canada has very cheap, reliable, accessible energy, but this is not the case for the entire world. The energy crisis is a macro trend that will challenge politics everywhere in the world in the near future. There is not enough affordable, reliable supply to meet the world’s energy demands. LNG has hit record prices in Europe and Asia, and US commercial crude oil inventories are at their lowest since 2018. Of course, the COVID-19 demand collapse saw low lows, followed by a quick rebound in 2022. Heather says there’s no short-term or medium-term solutions, as even OPEC can’t keep up with modern-day demands.
It’s almost universally recognized that oil demand will continue to grow for at least the next 30 years, and this is causing some concern for the long term. It’s not surprising, considering the history (and ongoing) wars over oil and energy supplies. For example, there are concerns about Russia decreasing their supply as tension in the Ukraine mounts, and this raises questions about how Europe will get their energy if Russian natural gas is not available. Globally, governments are starting to subsidize energy costs–Norway, for example, is paying 55% of household power bills. Japan, the United States, and Spain are all turning to direct fossil fuel subsidies to help keep their citizens alive. In Canada, this is hitting households really hard, especially those with lower incomes. Atlantic Canada, for example, is spending an incredible percentage of their incomes on energy.
Dr. Exner-Pirot discussed the common claim that we just need to cut down on energy use. She looks to research which suggests energy use per capita is associated with societal well-being, lower child mortality, literacy rates, and access to clean drinking water. The issue right now is not between renewable and non-renewable energy, it’s between cheap and expensive energy. Dr. Exner-Pirot’s proposal: that if we want to subsidize getting rid of emissions, directly subsidize those! Reward the firms who are able to innovate in carbon capture and sequestration utilization.