Ernst & Young says Canada’s energy sector poised for growth amid Russian-Ukrainian conflict

(CNW Group/EY (Ernst & Young))

CALGARY — Ernst & Young says Canada is in a unique position to foster energy security abroad while the country continues its energy transition domestically.

The global technology and risk services provider says Canada’s opportunity arrives as a consequence of the economic impacts of the war in Ukraine.

Canada can build on broader aid commitments by embracing a role that cultivates energy security for more countries, while redefining Canada’s energy sector in the future.

E&Y’s statement lists slowed growth, financial market disruption, heightened cyber risk  and trade barriers, food insecurity among the lasting economic impacts of the Russian-Ukrainian conflict overseas.

In its statement, E&Y provided a breakdown of key factors that describe the impacts of the Russian-Ukraine conflict on Canada and the rest of the world, while outlining potential opportunities for change and growth in each of them as shown here below:

• In Europe, nearly 40 per cent of natural gas and 25 per cent of oil originates in Russia.
• The United States imports 35 per cent of its palladium, which is used in fuel cells, from Russia.
• Countries like Turkey, the Netherlands, Hungary, Kazakhstan and Poland also draw significant resources from Russian pipelines.
• The United States banned Russian oil, gas and coal this spring and the United Kingdom announced a phase-out of Russian oil by the end of 2022. Up until now, these nations were heavy importers as well.
• Any fall in the energy supply could affect industrial production capabilities to consumer energy bills beyond Germany, Italy and Belarus, which import the most Russian oil.
• International reliance on Russian energy and natural resources signifies a recovery period which could last until 2028 and an additional 20 years to get the sector back to a pre-war status quo.