Enserva reports that Canada will play an important role in meeting renewable energy demand
by CM Staff
Renewable energy demand and corresponding global requirements are going to increase with the evolving energy mix, and the industry is responding and leading the way with ESG performance objectives.
CALGARY — On Jun. 14, Enserva released its Spring 2023 State of the Industry Report providing an outlook for the sector in 2023 and sets the stage for a more detailed 2024 drilling forecast to be released in the fall of 2023.
The Report’s findings state that the 2023 outlook for the Canadian oil and gas industry is encouraging: global energy demand is strong, oil and gas prices are favourable, inflation and labour shortages are on the decline, and capital investment is on the rise. In addition, the industry is aptly positioned to take advantage of opportunities to participate in the evolving global energy mix.
“We’re extremely pleased with the forecast and what this means for the industry and our members,” says Gurpreet Lail, President and CEO, Enserva. “Global oil and gas demand continues to increase, and the Canadian industry will continue to be a meaningful and growing contributor to meet long-term energy needs, particularly in Western Canada. At the same time, the energy services sector is strongly positioned to take an important role in the evolving energy mix as more of our members invest in clean carbon technology solutions to meet growing demand.”
Key highlights of the Report include:
- A Growing and Evolving Energy Outlook:
- Increasing Oil and Gas Demand: For 2023, global oil demand will reach a record high of 102 million barrels per day, while gas production levels are also expected to remain near historic highs of 4.13 billion cubic metres.
- In the face of an evolving energy mix, oil and natural gas supply is expected to increase by 7.7 per cent and 2.7 per cent by 2050.
- The Need for Energy Supply Security: Energy security will continue to be a priority in 2023 as the Russian invasion of Ukraine continues to create geopolitical supply and demand disruptions, and fast-growing countries in Southeast Asia have a significant demand for energy long-term.
- This presents a significant opportunity for Canada a significant proportion of this supply is expected to come from North America.
- Increasing Oil and Gas Demand: For 2023, global oil demand will reach a record high of 102 million barrels per day, while gas production levels are also expected to remain near historic highs of 4.13 billion cubic metres.
- A Favourable Near-Term Outlook for the Canadian Petroleum Industry:
- Reduction of Labour Pressures despite Growth: Service companies expect to see labour pressures alleviate in 2023 due to higher in-migration from other areas of the country, improved workforce planning and better cost management, and could conservatively grow by as much as 4,000 over 2022 levels.
- Increasing Demand for Renewable Energy Solutions within the Energy Mix:
- Renewable energy demand and corresponding global requirements are going to increase with the evolving energy mix, and the industry is responding and leading the way with environmental, social and governance performance objectives and measures to attract investment in this area.
- Canada’s petroleum industry is well-positioned to act on these opportunities, ranking as a leading ESG performer among all major oil-producing countries.
Canadian provinces have developed policies of their own in relation to emissions reduction, hydrogen and critical minerals, some of which integrate with the federal approach. The Alberta government recently committed to achieving a carbon neutral economy – net zero – by 2050.
