Fatih Birol to Press Canada on Energy Infrastructure in Ottawa — Fatih Birol Energy Crisis Analysis
Fatih Birol will press Canada to speed energy infrastructure projects when he meets Prime Minister Mark Carney and other ministers in Ottawa this week, in a fatih birol energy crisis analysis that links the U.S.-Iran conflict to shifting supply routes. The International Energy Agency executive director wants Canada to use what he called a rare opening to expand exports while global buyers reassess where they source oil and gas.
Ottawa meetings with Mark Carney
Birol’s trip includes meetings with Tim Hodgson at Natural Resources and Finance Minister François-Philippe Champagne. He said Canada needs to accelerate energy infrastructure projects to take advantage of a once-in-generation opportunity to significantly increase exports, and he said Canada must move ahead on nuclear projects and supplying uranium, critical minerals, and oil and gas exports.
The Canadian discussion comes as Ottawa and Alberta are already talking about options for a pipeline to the West Coast under the energy agreement they signed in November. Alberta and Ottawa have also reached agreement on streamlining environmental impact assessments and on cutting methane emissions by 75 per cent from 2014 levels by 2035, while two objectives in the memorandum of understanding remain unresolved: carbon pricing and a CO2-capture project in the oil sands.
Iran conflict and market losses
Birol said the war in Iran has triggered a global reckoning on energy policy. Since Feb. 28, when the United States and Israel began their bombing campaign against Iran, Tehran’s closing of the Strait of Hormuz has choked off around 20 per cent of the world’s supplies, ripped more than 14 million barrels a day from the world market, and removed 110 billion cubic metres of gas.
He said the shortages will leave a long-lasting mark on the global energy sector no matter when the conflict ends. Countries are re-examining where they source oil and gas and the pace of electrifying their economies, and they will choose energy partners with much more care. “They will also look at the reputation and the risks of their energy partners,” Birol said.
Canada, North America and supply routes
Birol said Canada has a “once-in-a-generation opportunity” to move from a country with significant and varied energy resources to a major exporter. He also said future energy supplies will include new supply routes and suppliers, with North America among the key regions being considered, and he said world markets now need “trust and predictability.”
Oil exports from North America are already surging amid the conflict in Iran. For Canada, the immediate test is whether Ottawa, Alberta and the federal ministers Birol is meeting this week can turn the current opening into faster projects rather than another round of unresolved policy talks.
