This is a breaking story. Watch for a full report in the June 21 edition of The Energy Mix.
Global fossil fuel demand falls steeply, Canadian oil and gas producers are in for a major price squeeze, electricity use doubles to become the “cornerstone” of the country’s energy system, and oil sands producers face higher transition costs in the net-zero by 2050 scenarios released today by the Canada Energy Regulator (CER).
In that future, “the types of energy that Canadians use will be vastly different than what they are today,” CER Chief Economist Jean-Denis Charlebois told a media briefing this morning. “In practice, this means a lot less fossil fuels.”
But to get there, “every industry, every province, everyone will need to make a difference,” because climate policies that Canadian governments have adopted to date won’t be enough to hit a net-zero target.
The scenarios show global export markets for oil and gas demand dropping sharply, as well, as countries around the world embrace a faster energy transition and tougher climate policies. Canadian fossil fuel production falls as a result—the only question is how far and how fast. In a scenario where Canada moves faster than other countries on net-zero strategy, oil production peaks in 2029, gas in 2030. With other countries adopting faster, deeper carbon cuts, gas peaks in 2023, oil in 2026.
Get the rest of this breaking news report here.