Canada's Energy Trade with Europe Faces Infrastructure Challenges
Canada's energy trade with Europe is facing challenges due to a lack of infrastructure on the East Coast, making it difficult to export oil and gas from this region.
R.J. Johnston, director of energy and natural resources policy at the University of Calgary's School of Public Policy, said that while there are some options available, such as swap contracts, these will not solve the problem in the short-term.
Antweiler noted that dynamics in the oil market are different, but Canada could add to the broader market, freeing up barrels for Europe that meet its stringent environmental standards.
The Alberta Premier and Ontario Premier floated a plan called the Northern Shield Energy Corridor to ship Alberta crude to refineries Sarnia, Ont., with the potential of opening up new export paths via the Atlantic. However, Antweiler does not see the European situation being much of a boost for this concept.
Both Europe and Asia want to find more reliable sources to meet their current needs, but Johnston said the growth projections for Europe are much softer than those in Asia.
There are other avenues for Canada to boost its energy trade with Europe beyond fossil fuels, such as biofuels, hydrogen, and critical minerals like cobalt, copper, graphite, lithium, nickel, and rare earth elements. These minerals are becoming increasingly important as the European Union aims to become an electro-powered continent.