As demand for energy continues to rise, the supply needed to meet that demand will become increasingly difficult and expensive to find and develop.
We know that Canadians need secure energy and a strong economy. We also know that our nation’s resources must be developed responsibly. We believe that we can and must advance environmental protection, economic growth and a secure energy supply simultaneously.
We All Need Energy
It’s something we can easily take for granted. We get up in the morning, turn on the shower, plug in the coffee maker, and hop in our vehicle to start another day’s work. These, along with hundreds of seemingly insignificant actions, are things we do each and every day and they all have one big thing in common – they all require energy.
Our reality is a future where the world’s demand for energy will continue to rise sharply, but the supply to meet that demand will become increasingly difficult and expensive to find and develop.
Oil and Gas as Part of Our Future
For the foreseeable future, oil and natural gas are going to be an important part of our energy supply. As the world population grows and our living standards advance, so too does the energy demand.
While alterative sources of energy will be important, the International Energy Agency
states that fossil fuels will remain our primary source of energy in the future, accounting for 84 per cent of the overall increase in demand between 2005 and 2030.
So where is all this extra demand for energy coming from? China and India’s combined consumption will account for nearly half of it. Oil imports for both countries will increase nearly four times in the next 20 years, and surpass the current levels of imports from Japan and the United States combined. As well, we know that consumption will also rise worldwide.
Finding Reliable Supply to Meet the Demand
While we’re witnessing strong increases in the world’s demand for energy, finding the additional supply to fill that demand is becoming more difficult. Companies now have to look at more remote and difficult locations to get their supply and are turning more to unconventional sources to fill the gap.
Many of the world’s current producing oilfields are running out of oil. In addition, almost 80 per cent of the world’s current reserves are held by state-owned national oil companies. These countries develop their own resources to meet their own needs first. Many do not want to do business with foreign investors.
Find out more about Canada's petroleum resources
Energy and Environment
In Canada, and around the world, the challenge is not simply to develop enough energy to meet our needs. Many new sources of energy bring environmental challenges. Our industry addresses these challenges through investment in, and development of, new innovations and technologies. We are also finding new and innovative ways to produce oil and gas that reduce our industry’s impact on the environment.
Find out more about what we’re doing to protect the environment
"the world is being driven by its need for energy"
Shell Canada's Athabasca Oil Sands Project
As the era of easy oil ends, production of fossil fuels from sources, such as oil sands - a blend of clay, sand, water and bitumen will grow. Learn about Shell's Athabasca Oil Sands Project in Alberta (Shell's share is 60%) that extracts bitumen and converts it to synthetic crude oil.
Watch the entire Shell video on YouTube
The Responsible Canadian Energy™ Program represents a collective commitment by CAPP’s member companies to continuously improve, measure and report performance in the areas of people, air, water and land, and engage collaboratively with the communities in which industry works.
Did you know?
According to the International Energy Agency, the world consumed 85 million barrels of oil per day in 2008. That number is expected to increase to 105 million barrels per day by 2030; a projected increase of around 24% in just over two decades.
Find out more