Canada’s role in global energy supply is critical for the US, RBC boss says

RBC CEO Dave McKay believes that Canada plays a critical role in the energy security of the United States, especially when it comes to supplying oil and gas to Asia. Speaking in Toronto, McKay pointed out that while the U.S. focuses on “Buy American,” it relies on Canadian energy to meet global demands.

The United States needs Canada’s energy resources, particularly oil and LNG, to support Asia, which allows the U.S. to divert energy supplies to Europe, according to McKay. Canada’s Trans Mountain pipeline expansion and future LNG exports will be key players in this dynamic.

Asia’s demand for cleaner energy, especially natural gas, is growing rapidly. The US Energy Information Administration (EIA) projects significant growth in oil and gas demand from Asia by 2050, with Canada in a prime position to capitalize.

However, McKay warned that federal policies such as the proposed cap on oil and gas emissions could limit Canada’s output, undermining its ability to meet growing demand. He emphasized the need for Canada to continue to harness its vast energy resources while pursuing a balanced approach to clean technology and emissions reductions.

Canada needs to strike a balance between traditional energy exports and cleaner energy solutions, especially as the world faces growing energy demands and climate challenges, McKay said.

The exponential growth of artificial intelligence is a challenge for energy, which is expected to account for 3.5% of global electricity consumption by 2030. In the United States, data centers could reach 9% of electricity generation by the end of decade — their double. current levels. Meeting this demand will require more renewables and simply more energy production in general to avoid crippling energy shortages.

By Julianne Geiger for Oilprice.com

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