Purpose of Canada’s Oil and Gas Sector

Canada’s oil and gas sector has long been a pillar of the nation’s economy, providing jobs, contributing to GDP, and fueling domestic and international energy demands. The extraction and export of fossil fuels—particularly from the oil sands in Alberta—have enabled Canada to become one of the world’s leading energy producers. Supporters argue that the industry plays a vital role in economic growth, national energy security, and global energy supply chains. However, critics highlight the environmental impacts of oil and gas production, such as greenhouse gas emissions, water contamination, and land degradation. These concerns, combined with increasing pressure to meet climate targets, have fueled debate over the long-term sustainability and ethics of maintaining a fossil fuel–driven economy.

Key Question

To what extent does Canada’s continued investment in oil and gas align with its long-term economic and environmental interests, considering the global transition to cleaner energy sources?

Perspective 1 – Excerpt from a Canadian Environmental Scientist’s Commentary (2023)

Canada’s continued expansion of oil and gas infrastructure is incompatible with its climate commitments. According to a 2023 analysis by the Canadian Climate Institute, the oil and gas sector remains the largest source of greenhouse gas emissions in the country. “If Canada is serious about reaching net-zero by 2050, it cannot continue to approve new oil and gas projects,” the report states. The environmental costs—including the degradation of boreal forests, rising emissions, and threats to Indigenous land—far outweigh any short-term economic gains. The future must be built on renewable energy and bold climate leadership.

Perspective 2 – Excerpt from the Canadian Association of Petroleum Producers (CAPP) (2022)

Oil and gas are essential to Canada’s prosperity and energy independence. In a 2024 statement, CAPP emphasized that “Canada’s oil and gas industry supports over 500,000 jobs, provides billions in government revenues, and is a global leader in responsible resource development.” The organization argues that Canadian energy is produced under some of the world’s most stringent environmental and labor standards, making it a better alternative to imports from nations with weaker regulations. Rather than phasing out oil and gas, Canada should invest in innovation—such as carbon capture and storage—to reduce emissions while maintaining economic competitiveness.

Perspective 3 – Excerpt from an Indigenous Land and Water Defender’s Perspective (2022)

Communities across Canada—especially Indigenous nations—are disproportionately impacted by oil and gas development. In a 2022 interview with CBC News, land and water protector Melina Laboucan-Massimo said: “Our communities face the brunt of environmental damage—oil spills, air and water contamination, and health impacts—while decisions are made without our consent.” For many Indigenous peoples, the land is sacred, and fossil fuel expansion threatens not only ecosystems but also cultural survival. A just transition away from oil and gas must center Indigenous leadership, consent, and land stewardship.

Perspective 4 – Excerpt from a Canadian Energy Economist’s Commentary in Support of Oil and Gas Expansion (2023)

Expanding Canada’s oil and gas sector can play a key role in both national and global economic stability. In a 2023 opinion piece in The Globe and Mail, energy economist Blake Shaffer stated: “Canada has the opportunity to be a reliable and responsible supplier of energy to the world, especially as geopolitical tensions disrupt other sources.” He emphasized that Canadian oil and gas is produced under stricter environmental regulations than many global competitors, and that revenues from the sector can fund clean energy innovation. Rather than abandoning the industry, Shaffer argues, Canada should pursue parallel investment in oil and gas and low-carbon technologies to maintain energy security while preparing for the future.