Takeaways from the discussion –
1. Defining Energy Security: Exner-Pirot defines two categories of energy security: consumer energy security means having a reliable, affordable, and sustainable supply but from an international relations perspective, energy security involves a state’s ability to secure sufficient energy supplies without being vulnerable to adversaries.
2. Canada’s Endowment: Canada has vast energy resources, including oil, natural gas, uranium, hydroelectricity, and renewables. Exner-Pirot emphasizes the importance of distinguishing between decarbonization and reliance on Chinese-dominated renewable technologies, advocating for using Canada’s own resources like hydro and nuclear to achieve decarbonization goals.
3. Geopolitical Importance: Exner-Pirot states, “it’s critical that you still have a large democracy…that is providing some proportion of the world’s oil and gas needs.” Canada is one of the few democracies with large reserves, and thus has the means to reduce the dependence of its partners and allies on energy from authoritarian regimes like Russia.
4. Critical Minerals: Canada’s progress in developing critical minerals like copper, nickel, and rare earth elements (REEs) is essential for green technologies and energy security. However, Exner-Pirot observes that the only two critical minerals in which Canada has a substantial effect on global markets at this time are uranium and potash. The focus needs to be on increasing production to contribute more to global supply and to reduce dependence on China’s dominance in mining and processing these resources.
5. Thinking beyond the US: Exner-Pirot notes that a significant portion of Canadian oil and liquified natural gas (LNG) is exported to the rest of the world via the US. To capture more value and enhance its strategic position from energy exports, she suggests Canada further develop its infrastructure for direct exports to other markets. Asia’s growing middle class represents a significant growing market for Canada, particularly for LNG. Additionally, energy demand in Europe is substantial as it seeks to reduce reliance on Russian imports. As Exner-Pirot notes, “There is a business case for LNG to Europe…people are making good money selling LNG to Europe.”
6. Strategic Resource Management: Exner-Pirot believes Canada needs to be more strategic with the politics of its energy resources. She recommends that Canada use its energy resources as a security asset to advance Canada’s interests abroad. Canada has not fully leveraged its potential and a more strategic approach would position Canada to strengthen the long-term energy security of its allies and partners – and bring economic growth for Canadians.
