The world’s leading advanced democratic nations issued a strong endorsement of Canadian oil, natural gas, and critical minerals in their concluding statement on geopolitical issues at the G7 summit in Evian-les-Bains, France, this week.
G7 Leaders Call for Energy Diversification
“We commit to accelerate the diversification of energy supply routes in order to reduce global vulnerability to the Strait of Hormuz and to increase our energy stocks,” wrote the G7 leaders of the United States, United Kingdom, Germany, France, Italy, Japan, and Canada.
The statement included a key line: “We welcome the potential for Canada to deliver significant additional capacity to global markets in the coming years.” This recognition underscores Canada’s role as a reliable, democratic trading partner with abundant natural resources.
Canada’s Resource Wealth
Canada is the world’s fourth largest producer and exporter of crude oil, holding the fourth largest proven reserves. It is also the fifth largest natural gas producer and fourth largest exporter, with the ninth largest proven reserves. However, the country has failed to build the necessary infrastructure to get these resources to global markets, instead selling them at steep discounts to the United States.
Additionally, Canada has the potential to become a leading supplier of critical minerals and metals essential for wind turbines, solar panels, smartphones, laptops, electric vehicles, drones, satellites, data centres, and mobile networks.
Infrastructure Gaps
To capitalize on this potential, Prime Minister Mark Carney has emphasized the need to act at “speeds not seen in generations” in building new energy infrastructure. This includes oil and gas pipelines, liquefied natural gas plants, a national electricity corridor, and supply chains for critical minerals.
While Carney has spoken positively about meeting these challenges, Canadians need to see tangible results from the federal government. This requires an end to interprovincial disputes and a clear definition of “meaningful consultation” with Indigenous groups, especially since the Supreme Court has stated that Indigenous groups do not have a veto on development projects on Crown lands.
The history of resource development in Canada has often been characterized by one step forward and two steps back. To foster economic growth, increase productivity, and improve living standards, this pattern must change.
