Industrial & Manufacturing Company
The reasons for Canada to move from traditional fossil fuels to low-emission, renewable fuel are abundant, and many gas and oil companies are projected to take the plunge to invest on greener fuel.
Demographic Change
One of the biggest changes in the gas and oil industry is the change of demographics for demand. What used to be predominantly baby boomer demand for fuel has shifted to now a predominantly millennial market, whose demand is focused on lower-cost, low-emission, and renewable energy, as opposed to fossil fuels. In order for Canadian oil and gas companies to remain relevant in this demographic shift in their demand, many companies are diversifying their investment to things like hydrogen fuel and CCUS.
Push for EV
Canada has been pushing for electric vehicle use in an effort to reduce reliance on high carbon-emitting fossil fuels. The private gas and oil sector continues to plan huge developments for fossil fuels, however, due to the current increase in US demand for Canadian oil.
Meanwhile, International Energy Agency has released information that Canadian oil is expected to decline. However, with soaring prices and shortages in other markets, Canadian gas and oil companies have the advantage of selling at high prices, and are turning around and investing in alternative energy.
Climate Change
Canada has been announcing green policies that are in conjunction to the Paris Agreement that aims to reduce net-zero carbon emissions by 2050. These laws and policies are requiring Canada to report its progress to net-zero emissions, and will outline how the country and companies will do so from 2030 to 2050.
Canada missed the 2020 target, and is expected to miss the 2025 target as well, but Mr. Trudeau has pledged to meet the target for 2030.