Written by Lisa Baiton, President & CEO, Canadian Association of Petroleum Producers (CAPP)
Canada is at a turning point. Global energy demand is rising, driven by electrification, AI, and modernization worldwide. With world-class resources and environmental standards, Canada has a rare chance to lead as a trusted energy superpower—strengthening sovereignty, fueling prosperity, and shaping the future. The question is: will we seize this moment?
A World in Transformation
The world is changing at a pace unseen since the Industrial Revolution. Geopolitical upheaval and technological disruptions from AI to cloud computing are reshaping economies and energy demand. Amid this turbulence, Canada stands at a historic crossroads with an open window of opportunity.
Global Energy Demand: Evolving, Not Shrinking
Global energy demand isn’t shrinking; it’s evolving. Population growth and modernization in the Global South continue to push consumption upward, while electrification and AI-driven data centers in the Global North are accelerating demand in unexpected ways. In fact, by 2030, U.S. data processing alone could consume more energy than all heavy manufacturing combined.[i]
The Reality: Hydrocarbons Remain Essential
The reality? The future will need more oil and natural gas. Hydrocarbons still make up about 80% of the global energy mix, and demand for all sources is hitting record highs year after year.[ii] The International Energy Agency estimates $540 billion annually is needed just to maintain current oil and gas production through 2050.[iii]
Canada’s Opportunity to Lead
Canada has the resources and the responsibility to lead. With vast reserves, world-class environmental standards, and growing LNG capacity, we can become a trusted global energy superpower. Doing so strengthens sovereignty, funds public services, advances Indigenous partnerships, and drives economic growth.
Momentum Through Collaboration
The recent memorandum of understanding between the federal and Alberta governments signals a strong commitment to collaboration and growth for our oil and natural gas industry. Eliminating the emissions cap, revising the Competition Act, and advancing new market access are steps toward unlocking Canada’s vast energy potential and positioning us as a global energy leader.
The Canadian Way Forward
Canadians want to see their valuable oil and natural gas resources responsibly developed to build prosperity and strengthen our nation’s economic sovereignty. They expect this to be done the Canadian way—with innovation, in partnership with Indigenous communities, and with respect for the environment. CAPP and our members are ready to work with federal and provincial governments to build on the momentum created by this important agreement and ensure Canada competes successfully on the global stage.
Seizing the Moment
The world needs more Canadian energy. Let’s seize this moment with clarity, courage, and conviction.
[i] IEA Energy and AI Report (April 2025) https://www.iea.org/reports/energy-and-ai
[ii] IEA Global Energy Review (2025) https://www.iea.org/reports/global-energy-review-2025/global-trends
[iii] IEA, ibid.
