Energy Matters – Canada’s Options for the 2020s

Published October 29, 2018

RBC Economists Josh Nye, Dawn Desjardins, Claire Robbins and Carolyn King look at where Canada’s energy sector is heading, in both production and consumption, while considering the emissions impact.

RBC Economists Josh Nye, Dawn Desjardins, Claire Robbins and Carolyn King look at where Canada’s energy sector is heading, in both production and consumption, while considering the emissions impact. This report was originally published by RBC Economics.

Canada is blessed with abundant and enviable energy resources, including the world’s third-largest proven oil reserves. And for generations, the energy sector has benefited the Canadian economy in terms of jobs, investment and national wealth, representing about 10% of GDP. But as Canada prepares to enter the 2020s, the country is still struggling with some fundamental choices about how best to harness those resources and sell them to the world — a world in which demand for oil and gas very likely will continue to grow.

This report explores three scenarios for Canada’s oil and gas sector — one in which emissions are held flat, one in which production expands as planned, and one in which the sector follows a more ambitious growth scenario. Each scenario comes with projected benefits to the country, and consequences, that will require thoughtful policy choices around infrastructure, taxation, regulation, permitting and pricing. Hopefully, those choices can be made with clear thinking and objective data. Because whichever way you look at it, energy matters.

Read the full report

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