Home Month and Year December 2021 The Plan: Oil and Gas and Climate Change

The Plan: Oil and Gas and Climate Change

Tim McMillan, CAPP president and CEO.

The world’s oil and gas producers and energy associations get it! They walk the walk. They are committed to combating climate change and working collaboratively with governments to meet greenhouse emission reduction goals. And Canada is acknowledged and respected as a dynamic and innovative key player.

Last month, the Canadian Association of Petroleum Producers (CAPP) joined energy associations from around the world, calling for policy makers at the COP26 climate summit in Glasgow, to recognize the necessary role for natural gas and oil to meet growing global energy demand, positively impact climate change and meet the goals of the Paris Agreement.

“As we watch nations around the world struggle to provide energy to their citizens, Canada must step up and offer a safe haven for oil and natural gas investment, so our trading partners have access to reliable, affordable and responsibly developed oil and natural gas,” urged Tim McMillan, CAPP president and CEO.”

McMillan and other world delegates underscored the strategy of a transition, not an elimination of energy resources. The climate summit made the point that, although the reduction and elimination of fossil fuels is a popular movement, it is also a somewhat unrealistic and impractical global plan. Some countries either can’t afford the switch nor do they currently have the necessary alternative energy resources.

One example is Africa. According to the senior vice president of the African Energy Chamber, “Today in Africa there are 580 million people who lack access to any kind of electricity. That number is expected to grow exponentially in the next decade. He noted, as the cost of energy increases globally, African nations would be left behind in the energy transition, should they be asked to undergo a catastrophic and rapid transition.

“The continued evolution of the world energy system must maintain access to reliable and affordable energy for the world’s over seven billion people,” MacMillan said. “Today, both developed and developing nations face rising energy insecurity in a context of poorly designed energy and climate policies. Developed nations that once benefited from stable energy supplies are facing energy shortages, price volatility and a lack of infrastructure capable of bringing additional base energy online.”

The summit emphasized the reality that many world countries still experience serious energy poverty. They do not have the ability or the resources to supply affordable and reliable energy to their populations to meet the most basic of human needs. Many are being forced to turn to higher emission sources, as evidenced by the rapid rise of coal demand, to try and meet their energy needs.

MacMillan added that the group of natural gas and oil associations is calling for an inclusive approach in achieving the goals of the Paris Agreement which requires increasing—not restricting—energy access, including access to responsibly produced and lower emission natural gas and oil.

“Responsibly produced natural gas and oil can help countries, especially developing countries, make progress towards ambitious emission reduction targets.”