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Canada's Oil & Gas Sector Innovation Stakeholder Landscape (2022)

Canada's Oil & Gas Sector Innovation Stakeholder Landscape (2022)

1 of 99
1
Presented July 29, 2022, by:
Omer Kaya, Chief Executive Officer
Kathryn Kavanagh, Research Analyst, Project Co-Lead
Rustam Nurbekov, Research Analyst, Project Co-Lead
Edmer Buen, Senior Multimedia Developer
Alison Miller, Research Analyst
Sanjeev Gupta, Research Analyst
GACG © July 2022
Final Briefing Deck
Canada’s Oil & Gas Sector
Innovation Stakeholder
Landscape (2022)
Table of Contents
Project Objectives, Scope, and Timeframe 3
Oil and Gas Sector Innovation Stakeholder Landscape 9
Impact of the Oil & Gas Sector to the Canadian Economy 17
National Challenges and Opportunities 25
The Key Role of Oil & Gas Research & Innovation and Cleantech – Where is it
Happening?
30
Broader Context for Canada’s R&D/Innovation 31
Federal Government Involvement in the O&G and Innovation 36
Provincial and Municipal Activities and Priorities 42
Universities and Colleges 51
Not-For-Profits and Networks 55
Incubators and Accelerators 60
Private Sector – E&P, Innovation, and Investment 64
Who is using the Oil and Gas that Canada Produces? 72
Domestic Markets 73
Global Markets 77
Looking Forward to 2030 and 2050 81
Economic, Environmental, and Social Results 91
CRIN at the Centre of the Oil & Gas Innovation Ecosystem 95
Next Steps 99
Objectives:
• Identify, analyze, and comprehensively map key stakeholders in Canada’s Oil and Gas Sector Innovation Space
• Update the 2017 CRIN Ecosystem Map by revising information and adding comparative analysis and trends
Scope:
• Provide a database with information on stakeholders in the Oil and Gas Sector to act as an evergreen
document
• Provide a Map displaying how stakeholders and major sectors interact with one another in the Oil and Gas
ecosystem
• Display the impact of Oil and Gas Innovation within the Canadian Economy
• Highlight CRIN’s central role as an innovation network in the Oil and Gas Sector
Goals:
• Create a digital and visual capability for CRIN that supports both the network and its members in their
advocacy efforts and their ongoing stakeholder collaboration
• Provide CRIN and its members with an analytical data foundation for an evergreen map tool
3
Project Objectives and Scope
4
Project Timeframe
1.Initial
consultations with
Project Authority
starting no later
than April 11th,
2022
1.Present a
skeleton outline of
the Stakeholder
Landscape Map
and skeleton
Database to the
Project Authority
by May 30th, 2022.
1.Present a draft of
the Ecosystem
Map, Database and
Briefing Deck to
the Project
Authority by June
30th, 2022, for
discussion and
feedback.
1.Provide the final
Stakeholder Map,
Database and
Briefing Deck to
the Project
Authority by July
29th, 2022.
2017 Version
• Global Advantage Consulting Group (GACG) created the first iteration of the O&G innovation ecosystem
map for CRIN in 2017, highlighting key implementers, tools, and resources in the sector to assist in
policymaking and supporting the acquisition of $100 M in funding from the Strategic Innovation Fund
• The tool was posted to CRIN’s website for members, but it had limited interactivity and use
2022 Version – Phase I (current project)
• GACG updates the O&G innovation ecosystem map, and provides a linked database that captures detailed
information about sector stakeholders in a changing landscape
• The map is interactive, allowing users to click on an element and be taken to a page in the associated
database deliverable or to an external source
Subsequent Phases could involve investigating the various use cases and enhancing the user experience,
improving navigation and refining interactivity, and updating the content on a regular basis.
5
Project Context: Recap
2017 2022 2023 2024 …
………………………………………………………………………
The purpose of a stakeholder landscape map is to visually represent the Actors, Activities, Tools, and Resources of
an ecosystem in order to identify high-level relationships between stakeholders.
6
What is a Stakeholder Landscape Map?
Arrows represent flows of Money, People, Information,
and Materials and between key stakeholder groups
The map is linked to an accompanying database and
external sources, so that further details are easily available
by clicking on the relevant text box.
Text boxes include data and analysis that highlight major
players and their activities in each of the key sectors,
enabling map users to make informed decisions

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Canada's Oil & Gas Sector Innovation Stakeholder Landscape (2022)

  • 1. 1 Presented July 29, 2022, by: Omer Kaya, Chief Executive Officer Kathryn Kavanagh, Research Analyst, Project Co-Lead Rustam Nurbekov, Research Analyst, Project Co-Lead Edmer Buen, Senior Multimedia Developer Alison Miller, Research Analyst Sanjeev Gupta, Research Analyst GACG © July 2022 Final Briefing Deck Canada’s Oil & Gas Sector Innovation Stakeholder Landscape (2022)
  • 2. Table of Contents Project Objectives, Scope, and Timeframe 3 Oil and Gas Sector Innovation Stakeholder Landscape 9 Impact of the Oil & Gas Sector to the Canadian Economy 17 National Challenges and Opportunities 25 The Key Role of Oil & Gas Research & Innovation and Cleantech – Where is it Happening? 30 Broader Context for Canada’s R&D/Innovation 31 Federal Government Involvement in the O&G and Innovation 36 Provincial and Municipal Activities and Priorities 42 Universities and Colleges 51 Not-For-Profits and Networks 55 Incubators and Accelerators 60 Private Sector – E&P, Innovation, and Investment 64 Who is using the Oil and Gas that Canada Produces? 72 Domestic Markets 73 Global Markets 77 Looking Forward to 2030 and 2050 81 Economic, Environmental, and Social Results 91 CRIN at the Centre of the Oil & Gas Innovation Ecosystem 95 Next Steps 99
  • 3. Objectives: • Identify, analyze, and comprehensively map key stakeholders in Canada’s Oil and Gas Sector Innovation Space • Update the 2017 CRIN Ecosystem Map by revising information and adding comparative analysis and trends Scope: • Provide a database with information on stakeholders in the Oil and Gas Sector to act as an evergreen document • Provide a Map displaying how stakeholders and major sectors interact with one another in the Oil and Gas ecosystem • Display the impact of Oil and Gas Innovation within the Canadian Economy • Highlight CRIN’s central role as an innovation network in the Oil and Gas Sector Goals: • Create a digital and visual capability for CRIN that supports both the network and its members in their advocacy efforts and their ongoing stakeholder collaboration • Provide CRIN and its members with an analytical data foundation for an evergreen map tool 3 Project Objectives and Scope
  • 4. 4 Project Timeframe 1.Initial consultations with Project Authority starting no later than April 11th, 2022 1.Present a skeleton outline of the Stakeholder Landscape Map and skeleton Database to the Project Authority by May 30th, 2022. 1.Present a draft of the Ecosystem Map, Database and Briefing Deck to the Project Authority by June 30th, 2022, for discussion and feedback. 1.Provide the final Stakeholder Map, Database and Briefing Deck to the Project Authority by July 29th, 2022.
  • 5. 2017 Version • Global Advantage Consulting Group (GACG) created the first iteration of the O&G innovation ecosystem map for CRIN in 2017, highlighting key implementers, tools, and resources in the sector to assist in policymaking and supporting the acquisition of $100 M in funding from the Strategic Innovation Fund • The tool was posted to CRIN’s website for members, but it had limited interactivity and use 2022 Version – Phase I (current project) • GACG updates the O&G innovation ecosystem map, and provides a linked database that captures detailed information about sector stakeholders in a changing landscape • The map is interactive, allowing users to click on an element and be taken to a page in the associated database deliverable or to an external source Subsequent Phases could involve investigating the various use cases and enhancing the user experience, improving navigation and refining interactivity, and updating the content on a regular basis. 5 Project Context: Recap 2017 2022 2023 2024 … ………………………………………………………………………
  • 6. The purpose of a stakeholder landscape map is to visually represent the Actors, Activities, Tools, and Resources of an ecosystem in order to identify high-level relationships between stakeholders. 6 What is a Stakeholder Landscape Map? Arrows represent flows of Money, People, Information, and Materials and between key stakeholder groups The map is linked to an accompanying database and external sources, so that further details are easily available by clicking on the relevant text box. Text boxes include data and analysis that highlight major players and their activities in each of the key sectors, enabling map users to make informed decisions
  • 7. 7 Benefits of a Stakeholder Landscape Map for CRIN Members 1. Acts as a visual strategy tool for a greater commercialization roadmap 2. Provides quick access to the relevant policy, innovation, and funding landscape 3. Helps members discover synergies with other players in the ecosystem 4. Provides an integrated, whole-system approach to mapping 5. Guides members on the activities and flows within Canada’s oil & gas innovation landscape 6. Acts as a quick-access one-stop-shop for all members across Canada with information spanning each region 7. Gain an understanding of regional ecosystem dynamics 8. Access to a comprehensive database with the ability to sort and filter 9. Opportunity to assess and respond to key risks in the landscape 10. Opportunity to assess and leverage vital growth points
  • 8. 8 Canada’s Oil and Gas Sector Innovation Stakeholder Landscape Map (2022) Federal Government Granting Councils Higher Education Networks and NFPs Private Sector Global Markets Provincial/Territorial Governments and Key Municipalities Domestic Markets Economic Impact of Canadian O&G, Sector Challenges and Opportunities Ecosystem Health and Desired Results (economic, environmental, and social) Global Risks Landscape Looking Forward to 2030 and 2050
  • 9. Oil & Gas Sector Innovation Stakeholder Landscape Bottom Line Up Front and Key Trends in the Landscape since 2017 9
  • 10. 1. In recent years, the Federal Government has made multiple policy changes to increase GHG emission benchmarks and accelerate the green transition 2. Since 2015, the federal government has invested $100 B into fighting climate change, and since 2017 has invested $2.3 B into clean technology 3. Provinces have been dealing with their emissions in their own way, and emphasising the need for different approaches depending on the province 4. Alberta remains at the centre of the O&G space in multiple sectors 5. Higher education institutions, especially universities, are beginning to add further emphasis on engaging the accelerator space in order to commercialise research 6. There has been a proliferation of not-for-profits (NFPs), networks, and business accelerators and incubators (BAIs) since 2017. According to GACG research, there are 51 NFPs and networks and 67 BAIs working in the O&G innovations space in 2022. 7. Engaging with the private sector to incentivise the adoption of new clean technologies will improve commercialisation and adoption, and continue to help the sector to grow post-pandemic 8. Supply chain issues are impacting the O&G sector, but investing in digitalisation and engaging a diverse group of suppliers can help companies avoid delays in delivery 9. The clean technology industry in Canada has grown since 2016, but is struggling to diversify export markets 10. The top 5 global risks in 5-10 years are all related to the impacts of climate change 10 Bottom Line Up Front Sources: GACG Analysis and Visualization, Budget 2022, The Global Risks Report 2022, BDC: Supply Chain Disruptions
  • 11. The Green Transition • Many 2017 programs have been centralized under NRCan's Office of Energy Research and Development, including the Energy Innovation Program and the Clean Growth Program (CGP). Other programs have distributed all their funding, like the Oil and Gas Cleantech Fund (also under the CGP). Finally, some programs have been relocated under accelerators such as the Alberta Carbon Conversion Centre under Innotech Alberta • Provinces and territories are still in the process of creating, updating, and refining climate change and emissions plans, but almost all of them have at least one document that drives the province towards Canada’s 2030 goals, with many of them emphasizing clean technology innovation and carbon capture • The Federal Government has increased restrictions on emissions, providing higher benchmarks on minimum emissions standards for the provinces and territories. Response plans to these benchmarks change depending on which party is elected to premierships in the provinces, but federal minimum standards ensure that we do not go backwards 11 The Accelerated Green Transition Source: GACG Analysis, Cleantech GDP, Budget 2022 “Smart climate investments today are good for Canadian workers, good for the Canadian economy, and good for the planet. With the largest mobilization of global capital since the Industrial Revolution already underway, Canada has the chance to become a leader in the clean energy of the future” – Budget 2022 CRIN’s position as an innovation network includes being a responsive partner in the green transition. Supporting benchmarks, improving intergovernmental cooperation, putting forward evidence-based advice to stakeholders, and advancing clean technologies are all parts of this position.
  • 12. 12 Changing Federal Government Priorities Source: GACG Analysis, Budget 2021, Budget 2022 • Since 2015, the federal government has invested more than $100 B in fighting climate change and protecting the environment • Since 2019, it is not free to pollute anywhere in Canada. Provincial and territorial governments can implement their own systems to meet the federal benchmark; those who do not subject to a federal backstop • An increase in the Strategic Innovation Fund’s budget, from $1.7 B over five years in 2017 to $7.2 B over seven years in 2021, with a further $1 B over 6 years in 2022. • Since 2015, $8 B has been allocated to the Net-Zero Accelerator • Since 2019, incentives to purchase zero-emission vehicles for private and commercial use have increased • In 2022, increased budgetary measures towards a greener economy and society include a $5 B green bond to finance investment in green infrastructure, $4.4 B for home retrofits to increase energy efficiency in the residential sector, and a new CCUS investment tax credit that is currently in the planning stages Budget 2022 established the Canada Growth Fund, a new public investment vehicle with an initial capitalization of $15 B over 5 years, to support climate goals and economic diversification. “On the fight against climate change alone — to build a net-zero economy by 2050 — Canada will need between $125 B and $140 B of investment every year. Today, annual investment in the climate transition is between $15 B and $25 B. No one government can close that gap.” Budget 2022
  • 13. The global cleantech market is projected to exceed $3.3 T in 2022, about 2% of anticipated global GDP • The goal from 2017 of expanding the contribution of the clean technology industry to Canada’s GDP by 2025 has been partially realized. Cleantech companies contributed $31 B to Canada's GDP in 2020 and created at least 211,000 jobs in the same year. • Ontario is at the forefront of Canada’s cleantech industry, and in some of the years since 2017, has more than doubled its GDP contribution compared to the next highest performer. Clean Technology Exports • In 2019, Canada’s environmental and cleantech exports, including clean energy, totalled $13.5 B – but Canada’s share of the global cleantech export market is small, estimated at only 1% to 2%. • The government has set a target of $20 B in cleantech exports by 2025, a tripling in value and in excess of 11% growth per year. Canada still needs to expand its cleantech export destinations 13 Growing Clean Technology Markets Source: GACG Analysis and Visualisations, EDC - Canada’s Cleantech Future, Cleantech Group Canada’s Cleantech Export Destinations
  • 14. 14 O&G and Energy-Related R&D Still Significant, but Concentrated in a Few Groups Source: Sector spending; Top 100 corporate spenders, StatsCan Energy-related research and development expenditures Canada's Top 100 R&D Firms (2021) • R&D spending by O&G/Energy Sector companies puts the sector in 4th place behind Pharmaceuticals, Software, and Telecommunications Suncor Energy, Canadian Natural Resources, Imperial Oil, Syncrude and TC Energy invested a total of about $1.1 B in R&D in 2020 Energy-related R&D in Canada is concentrated in a handful of industries. Four groups account for 73.8% of all outsourced energy-related R&D expenditure. Petroleum and coal product manufacturing was by far the largest contributor at 46.1%, followed by oil and gas extraction, contract drilling and related services (15.7%) Oil and gas extraction, contract drilling, and related services alone accounted for over a quarter (25.4%) of in-house energy R&D spending, down from 2014 when this subsector represented more than half (51.3%)
  • 15. • Ongoing issues with supply chains impact costs and prices in every sector • Supply chain issues reverberate up and down the O&G value chain, from end user to upstream producer • Recommendations from the Business Development Bank of Canada to address supply chain issues include moving away from just-in-time delivery, investing in digitalisation, and diversification of suppliers • Digitalisation is an innovation that CRIN is already in, and there is a space here to connect with businesses that are involved in supply chain digitalisation 15 Supply Chain Issues Impacting O&G Innovation Sources: StatsCan – Analysis on Supply Chains, BDC: Supply Chain Disruptions 57% 47% 47% 0% 10% 20% 30% 40% 50% 60% Business expects difficulty acquiring inputs, products or supplies from within Canada for six months or more Business expects difficulty acquiring inputs, products or supplies from abroad for six months or more Business expects maintaining inventory levels to be an obstacle for six months or more Mining, Quarrying, and Oil and Gas extraction Sector Expectations of Supply Chain Interruptions (%) (April 2022) “There is no miracle solution to these challenges. The pressure on supply chains will remain acute and prices high throughout the year [2022].” - Sylvie Ratté, Senior Economist at BDC
  • 16. Not-for-Profits (NFPs) and Networks • The 2017 map noted 26 industry and national associations with interests in the Oil and Gas Sector. In 2022, the NFP engagement in the O&G space has increased, with 51 different NFPs working at the national, provincial, and Indigenous levels • All four of the federally funded NFPs noted in the 2017 map are still in operation, with Mitacs offering an opportunity for CRIN’s membership to engage with academia and acquire research partners for innovation Accelerators and Incubators • In the 2017 map, GACG brought attention to 11 accelerators and incubators working in the oil and gas innovation space. In 2022, 67 different accelerators are included, showing how the sector has grown since 2017 • In 2017, one of the accelerators that GACG took note of was Foresight Cleantech Accelerator Centre (Foresight Canada). This accelerator now works with partners from over 150 countries worldwide, including international network funders such as Eureka. Foresight Canada made $225 M worth of capital investments in 2020-2021, almost half of the total amount Foresight has made to date, and $180 M in revenue. As Foresight Canada’s partner, CRIN may wish to leverage the wide, international network that this accelerator has accumulated 16 Sources: GACG Analysis, Foresight Canada – Annual Report 2020-21 Proliferating NFPs, Networks, and BAIs in the Landscape Not-for-Profits (NFPs), Networks, Incubators, and Accelerators were given some attention in the 2017 Map, but these sectors have expanded to meet the needs of a changing innovation landscape, working with government, academic, and private sector partners to offer networks, funds, and advocacy to the O&G innovation sector Accelerators and incubators often have funding partners that they work with, making them a type of network. Between this and the companies that receive funding from them, they offer a great opportunity for connecting businesses with CRIN, and for CRIN to act as the link between its membership and accelerator funding
  • 17. Impact of the Oil & Gas Sector to the Canadian Economy 17
  • 18. 18 Cross-Canada Economic Impact of the O&G Sector Source: Statistics Canada - GDP, NRCan Energy Factbook 2021-2022, Canadian Industry Statistics, World Top Companies Ranks of 2022 Canada rank 2022 World Rank 2022 Company Annual Revenue ($US) Market Value 2022 ($US) Number of Employees 1 201 ENBRIDGE 37.6 B 82.2 B 11,200 2 331 CANADIAN NATURAL RESOURCES 24 B 55.6 B 9,709 3 405 TC ENERGY CORPORATION 10.7 B 47.8 B 7,283 4 527 SUNCOR ENERGY 31.3 B 38.7 B 12,591 5 751 CENOVUS ENERGY 37 B 27.7 B 751 6 786 IMPERIAL OIL 30 B 26.7 B 5,800 Top Canadian Oil and Gas Companies in the World Top-1000 • In 2021, there were 7,937 Oil and Gas firms in Canada, down from 8,891 in 2016 • In 2021, Canadian Oil and Gas Sector provided almost 170 K direct jobs, down from 193 K in 2016 • Canadian Oil and Gas exports amounted to $86 B (2020), up from $69.2 B in 2016 • Nearly all Oil and Gas firms in Canada are Canadian owned and operated Canadian oil and natural gas provided $146 B or 6.7% to Canada's $1.9 T gross domestic product (GDP) in 2021 O&G’s Share of Canadian GDP, 2017–2021 ($B) Between 2017 and 2021 the share of the Oil and Gas sector in Canada's GDP remained at about 7.6% $1,749 B $1,794 B $1,828 B $1,738 B $1,820 B $143 B $153 B $152 B $138 B $146 B 2017 2018 2019 2020 2021 Other Industries Oil and Gas Sector
  • 19. 19 Employment in the Canadian Oil and Gas Industry Source: O&G share of GDP, Employment data, Labour Market Outlook 2021-2023, NRCan Energy Factbook 2021-2022 In 2021, there were about 169,470 direct jobs in the O&G sector. The labour market outlook for Canada’s oil & gas industry for 2021-2023 foresees a net hiring requirement of almost 20,000 jobs, about 7,800 due to industrial activity and the remainder to replace an aging workforce. In 2020, approximately 10.4 K Indigenous people were employed in the Oil and Gas sector. Many of the top ten occupations with the greatest hiring requirements in 2021-2023 are core sector workers. (NOC code) Downsizing since 2014 and the impacts of the pandemic are making it difficult to attract sufficient skilled workers. Oil & Gas Sector Direct Jobs (2021): 169,470 Source: CANSIM Tables 383-0031 | NAICS Codes: 211, 21311A, 2212, 32411, 3241A, 412, 486
  • 20. The Changing Environmental Demands on Innovation and O&G • The O&G industry is an important contributor to Canada’s GDP, but recognition of the future of clean technology and the energy transition is a necessity for the industry and Canada as a whole • Federal benchmarks laid out in 2030 Emissions Reduction Plan: Clean Air, Strong Economy also set the minimum standard every province must meet: 40% below 2005 emissions levels by 2030 and net-zero emissions by 2050 • Provincial Emissions and Climate Plans are also setting goals for the sector beyond Federal benchmarks 20 The 2030 Emissions Reduction Plan sets Benchmarks Source: 2030 Emissions Reduction Plan: Clean Air, Strong Economy
  • 21. 21 GACG’s analysis of the ERP identifies 104 total measures impacting 11 areas to reduce GHG emissions to 443 Mt by 2030. With such an ambitious plan, how can the O&G sector act upon all of the relevant measures?
  • 22. 22 The Emissions Reduction Plan is incredibly complex, requiring collaboration between 17 departments on 104 total measures … to transform the way Canadians work, live, play, and travel At least 11 individual measures are stated to require collaboration between multiple departments and agencies or provincial governments.
  • 23. 23 Four Impact Areas Make Up Three-Quarters of Target Reductions Source: 2030 Emissions Reduction Plan, GACG Analysis and Visualization Oil and Gas 191 Mt → 110 Mt 81 Mt Transportation 186 Mt → 143 Mt 43 Mt Electricity 61 Mt → 14 Mt 47 Mt Buildings 91 Mt → 53 Mt 38 Mt These four impact areas significantly affect consumers and represent 73% (209 Mt) of the ERP’s total target emissions reductions (287 Mt)
  • 24. The Canada Growth Fund and the Canadian Innovation and Investment Agency • The Canada Growth Fund offers $15 B over the next five years to accelerate the investment of private capital into decarbonization and clean technology projects. Budget 2022 outlines that Canada needs $125 B-$140 B of investment/year to reach our 2050 climate goals. This is a minimum of a $110 B increase from where Canada currently stands ($15-$25 B/year) • The development of a Canadian Innovation and Investment Agency to address “low rate of private business investment in research, development, and the uptake of new technologies.” The federal government is offering $1 B over five years, starting in 2022-23, to set up this agency. As an innovation network, CRIN could engage its membership with these new initiatives, but also use these initiatives to further expand its network and impact 24 Budget 2022 Aims to Increase Private Capital Investment in the Clean Technology Space Source: Budget 2022 “In the face of uncertainty, business investment can be paralyzed by a “wait-and-see” approach. But to succeed in an uncertain world, Canada must invest in its future now” – Budget 2022 • Budget 2022 emphasizes the enormous growth in the clean technology sector prior to the pandemic but warns that global uncertainty may hamper continued development. On top of the investments promised in Budget 2021, in 2022 the Federal Government is working to mobilize private capital in the clean growth sector with a new fund and a new agency:
  • 25. National Challenges and Opportunities 25
  • 26. 2022: A Year of Challenges • Challenges to the O&G industry in 2022 include: emissions reduction, Canada’s lagging economic performance, the war in Ukraine, supply chain issues, and COVID-19 Economic Recovery Emissions • The O&G sector was responsible for 27% of GHG emissions in Canada in 2020 • The oil sands is one of the largest drivers of emissions growth in the O&G Sector • Total GHG emissions remained stable in 2015-2019 (between 700 and 750 Mt CO2/year during this period) • In 2020, emissions dropped to 672 Mt CO2 due to the pandemic, but this trend is unlikely to continue as the world returns to pre-pandemic levels of activity 26 What are the current challenges? Source: Environment and Climate Change Canada: GHG Sources and Sinks Total: 672 Mt CO2
  • 27. Canada’s Lagging Long-Term Economic Growth 27 Source: Budget 2022 Canada is projected to have one of the lowest- per-capita GDP growth rates among OECD member countries. Budget 2022 intends to boost investment in the supply side of the economy but does not offer an established strategy and plan to address the issue of long-term economic growth. Of note, Budget 2022 calls for establishing a permanent Council of Economic Advisors to provide expert advice and policy options, with more details to come in upcoming months.
  • 28. 28 Where are the current opportunities? The Clean Technology Opportunity • Clean technology and innovation present an opportunity for the Oil and Gas sector to reduce its carbon footprint and improve future environmental outcomes for Canada as a whole • The 2017 Clean Technology Data Strategy provides information on the impact of the Clean Technology sector in Canada, including high GDP impact per region (see map at right) • For the O&G Sector, Clean Technology includes digitization, remediation, transportation improvements (pipelines and transit), water treatment, and investments in areas like hydrogen and geothermal Cleantech Sector’s GDP Contributions (2020) courtesy of the Clean Technology Data Strategy In 2019, the clean technology sector was growing at twice the pace of the total Canadian economy – A trend that is expected to continue as we come out of the pandemic, and an opportunity for CRIN as a central innovation network to pivot their members even further towards innovating and, importantly, implementing clean technologies Source: Clean Technology Data Strategy, StatsCan: Environmental and clean technology products sector grew at twice the pace as the total economy in 2019
  • 29. 29 Cleantech in Canada’s Energy Future Source: NRCan Energy Factbook 2021-2022 “The challenges of transitioning to a lower carbon energy system are numerous, but they also present opportunities for Canada to be a global leader by supporting innovative technologies in the energy sector, including promoting our growing renewables and cleantech sectors.” – Natural Resources Canada
  • 30. The Key Role of Oil & Gas Research & Innovation and Cleantech – Where is it Happening? 30
  • 31. Broader Context for Canada’s R&D/Innovation 31
  • 32. Canada’s Weak Attempts at R&D/Innovation Strategy 32 Source: OECD Main Science and Technology Indicators, GACG Analysis and Visualization 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 2.60 2.80 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 GERD as % of GDP (2000-2020) $23 B Gap A Plan to Grow our Economy Freeland/Sabia /Budget 2022 Canada’s Innovation Strategy – Alan Rock (IC) and Jane Stewart (HRSDC) (2002) Expert Panel Report on Commercialization – Joe Rotman (2005) Mobilizing S&T to Canada’s Advantage – Maxime Bernier (IC) and Jim Flaherty (Finance) (2007) Innovation Canada: A Call to Action,– Expert Panel Report – Tom Jenkins (2011) Seizing Canada’s Moment – Moving Forward in Science, Technology and Innovation – Ed Holder (Minister of State S&T) (2014) Innovation and Skills Plan Bains/Knubley/ Budget 2017 OECD Average Canada 2.68% 1.70%
  • 33. Major Flows of R&D Funding 2021 33 Source: Statistics Canada - Table: 27-10-0273-01 (formerly CANSIM 358-0001), Global Advantage Analysis and Visualization Total R&D in Canada: $40 B 2 Primary Performers of R&D in Canada are the Higher Education and Business Sector Six (6) Sources of R&D Funding Four (4) Key Performers of R&D
  • 34. Navdeep Bains and John Knubley: The Problems Remain! (February 23, 2022) 34 Source: Getting Canada Back on Track after COVID-19 ”A legacy of troubling underlying issues in Canada’s innovation performance also existed – and still remains – as challenges to be overcome. These include poor productivity growth, low business investment in R&D, anemic commercialization, poor rates of technological adoption and a recent run of underinvestment in science, technology and talent.” “Moving forward, the country badly needs a broader dialogue and debate about its strategic innovation and technology interests.” Getting Back on Track after COVID-19?
  • 35. Where do Nations Perform R&D? – Canada is an outlier! 35 Source: OECD, GACG Analysis and Visualization 17% 10% 71% 2% 12% 10% 74% 5% 23% 7% 68% 2% 17% 14% 69% 0% 8% 10% 80% 2% 41% 7% 51% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Higher Education Public Sector Private Sector Other Share of Total R&D Expenditures OECD Avg US UK Germany S. Korea Canada OECD Average
  • 36. Federal Government Involvement in the O&G and Innovation Sector 36
  • 37. • The Federal Government plays multiple roles in the clean tech and O&G Innovation environment: • Policy-maker • Funder • Regulator • Power-Broker • Business Partner • Global Collaborator • Since 2017, the Federal government has invested over $2.3 billion into clean technology. It also put $121 M into O&G Energy RD&D in 2019-2020 (see at right) • There have been multiple Federal government programs that have been started in order to kick-start and support Canadian Innovation and clean technology. Many of these programs are done in partnership with other sectors 37 Federal Government Involvement in Innovation and Cleantech Source: Federal ecosystem of support for clean technology, NRCan Energy Factbook 2021-2022 Expenditures on Energy RD&D by Technology Area ($M)
  • 38. • GACG found 64 different government programs, funds, and resources dealing with the O&G sector • The majority of these deal with cleaner fuel innovation (75%), indirect O&G innovations (40%), and/or remediation (39%) • The two departments with the most programs are Natural Resources Canada with 16 (including the Office of Energy Research and Development), and Innovation, Science and Economic Development Canada, which sponsors eight programs and funds, including the Strategic Innovation Fund and the Clean Growth Hub (see at right) • There are also 35 different Regional Development Agency Programs in place that may have applicability to O&G 38 Federal Government Programs and Development Agencies Source: GACG Analysis and Visuals Regional Development Agencies do not to have funds specifically for O&G, however regional innovation funds like the Economic Development Initiative work to support innovation and diversification in different Canadian regions and so can be used to support O&G innovation. CRIN may wish to leverage their position to help identify opportunities for membership in programs and funds that may seem to have a less obvious connection to oil and gas.
  • 39. 39 Federal Government: Natural Resources Canada Source: NRCan: Current Investments, NRCan - Carbon capture, utilization and storage strategy, Budget 2021 Project Support in Oil & Gas • NRCan’s Office of Energy Research and Development and the Energy Innovation Program have helped drive innovation funding in Canada • In 2022, NRCan supports six major RD&D innovation projects in the oil and gas sector. NRCan funding in these projects totalled $7.7 M, with some of the projects receiving between 40- 80% of their funding from NRCan • There is $319 M available in CCUS funding over seven years (Starting in 2021-2022) from NRCan. These are innovations that CRIN has centred as a critical method of greening oil and gas “CCUS is critical to six key pathways to a prosperous net-zero economy in Canada” - NRCan
  • 40. 40 Departments, Agencies, and Crown Corporations with an International Focus in Clean Technology Source: StatsCan – Export of Canadian Cleantech, Trade Commission on Clean Technology, EDC: 2021 Annual Report Global Affairs and the Trade Commission • Canada exported nearly $10 B worth of Clean Tech goods and services in 2020 • Federal departments, agencies, and crown corporations are pushing the growth of the Clean Technology investment: Global Affairs, Export Development Canada, and the Trade Commissioner Service (TCS), for example, are advocating Canada’s position in this industry globally • TCS now has Clean Technology commissioners in 100 countries Export Development Canada • EDC saw their clean technology business nearly double between 2019 and 2020, despite the pandemic, and added almost $2 B dollars again in 2021 • In 2021, EDC had 324 clean technology financial customers, up from 288 in 2020, and a 64% increase over 210 in 2018
  • 41. 41 Federal Granting Councils Source: Natural Sciences and Engineering Research Council of Canada Awards Database, GACG Analysis and Visualization • The three federal granting councils, the Natural Sciences and Engineering Research Council of Canada (NSERC), the Social Sciences and Humanities Research Council of Canada (SSHRC), and the Canadian Institute for Health Research (CIHR) collectively provide peer-reviewed funding for more than 17,000 researchers across the country • Oil and Gas and related research activities are funded mostly through NSERC • Thus, between the fiscal years of 2016-17 and 2020-21, NSERC issued 342 awards for oil and gas and oil and gas related research activities totaling $35.5 M Between 2016-2021, Albertan Universities (University of Alberta and University of Calgary) received the most awards from NSERC by number and overall funding On Average, NSERC Award amounts have been rising, with a notable exception being in FY2020-2021
  • 42. Provincial and Municipal Activities and Priorities 42
  • 43. • GACG found 25 O&G related grants, strategies, and programs in six provinces and one territory • 36% of these programs are in Alberta (9), and 24% are in Saskatchewan (6) • These programs covered a wide variety of O&G related topics, including emissions reduction, natural gas expansion, exploration, royalties, and innovation in the sector • Programs like Ontario’s Natural Gas Expansion Program and Alberta’s CCUS Program receive private sector support from companies like Enbridge and Chevron • GACG also found 12 plans and strategies supporting cleaner fuels initiatives across ten provinces and two territories • Many of these fall under the province or territory’s overarching climate change or emissions action plan 43 Provincial O&G Programs Source: GACG Analysis British Columbia has a dedicated Minister for Energy, Mines and Low Carbon Innovation, which offers a vertically integrated portfolio for the energy transition – this may be an example for how other provinces could look at their own resource and innovation offices, and offers CRIN an opportunity to engage provinces on this kind of future-looking government policy
  • 44. • Alberta produces 80% of the oil in Canada, and 69% of its natural gas (over twice as much as B.C., the second largest producer) • In 2021, Albertan O&G extraction was responsible for an $80 B contribution to Canada’s GDP. Saskatchewan, the second largest contributor in this sector, sat at a $10 B contribution. • Alberta has maintained an O&G extraction contribution to GDP at least seven times higher than every other province since 2017 • Alberta’s overall contribution to Canada’s GDP in 2021 was $323 B, meaning that just O&G extraction made up 24.7% of its GDP contributions 44 Alberta as the Powerhouse of O&G Extraction GDP Contributions Source: Canadian Energy Regulator, Statistics Canada – GDP by Province/Territory, GACG Analysis and Visualisation Oil and Gas Extraction by Province ($M) 2017-2021 (NAICS 211) A shortcoming to this kind of resource focus is that it exposes a lot of the province’s economy to market volatility. Encouraging oil and gas companies and the province at large to diversify assets and invest in green and clean technologies can help protect against this and CRIN is in a prime position to do so.
  • 45. • Provinces with larger O&G industries tend to have higher emissions • Ontario is an exception to the rule, likely as a result of having the largest city in the country • In 2020, the top 5 emitters (Alberta, Ontario, Quebec, Saskatchewan and British Columbia) together released 91% of Canada's national total GHG emissions • The Pan-Canadian Framework on Clean Growth and Climate Change is the Federal guide on emissions reduction has been signed on by every province and territory except for Saskatchewan • This document deals with not just the O&G sector, but instead has a cross-sectoral approach, including transport, electricity, and the built environment 45 Provincial Emissions and the Pan-Canadian Framework on Clean Growth and Climate Change Source: ECCC - Greenhouse Gas Emissions, GACG Analysis and Visualization Greenhouse gas emissions by province and territory (Mt CO2) - 2020
  • 46. Different Solutions for Different Provinces • Provinces are making the move towards net-zero in different ways, supported by federal benchmarks, equalization agreements, and inter-provincial cooperation • Climate change and emissions reduction action plans vary from province to province, with some using a variety of policies versus central emissions plans • Changes to the party affiliation of premiers after elections affect the way provinces deal with emissions reduction, but federal benchmarks ensure that provinces must have a plan to meet minimum standards 46 Provincial Green Solutions Source: CleanBC, The Way Forward, Quebec: Plan for a Green Economy, GACG Analysis
  • 47. Ontario and Alberta • Investment in clean technology and the establishment of provincial innovation spaces have been key solutions for provinces like Ontario (leading clean technology industry in Canada) and Alberta (focused on clean technology in the oil and gas space) • 2020 hit Albertan and Ontarian Clean Tech sectors differently. Ontario saw a decrease in Cleantech GDP contribution of 8% between 2019 and 2020, while Alberta saw a minor increase of 1%. In exports, however, Ontario saw a 7% increase in export numbers, while Alberta saw a drop of 27% in exports • A variety of factors such as COVID, supply chain deficiencies, low export demand, and low oil prices may have contributed to the disparities in exports, as over half of Alberta’s Clean technology was directed at the O&G market in 2020-2021 47 Ontarian and Albertan Clean Technology Source: Invest Ontario: Cleantech, Ontario’s Cleantech Strategy (2018), Foresight CAC: Alberta Cleantech Report 2021, Alberta Innovates: Annual Report 2020-2021, Clean Growth Hub – Clean Technology and Trade $2,891 $11,722 $2,924 $10,792 Alberta Ontario Cleantech GDP Contribution 2019 and 2020 ($M) 2019 2020 $728 $4,077 $526 $4,368 Alberta Ontario Cleantech Exports 2019 and 2020 ($M) 2019 2020
  • 48. 48 Municipalities are Initiating Projects and Looking for Collaboration Opportunities Source: GACG Analysis • GACG found 43 municipal programs and initiatives promoting cleaner fuels, decarbonization, and the energy transition • 15 of these initiatives are in the province of Ontario, seven in Alberta, and seven in B.C. • Of the 15 initiatives in Ontario, 13 take place in the southern Ontario region – 86% • Groups of municipalities, such as Eco-West Canada in the Prairies and a partnership between Canada’s seven largest cities, provide mutual practical support to develop low-carbon communities. • Some municipalities are using natural gas to develop cleaner energy products. Edmonton and Medicine Hat in Alberta are establishing hydrogen hubs, utilising CCUS to produce cleaner hydrogen from natural gas. The Partnership between Canada’s largest cities include Calgary, Edmonton, the Halifax region, Montreal Metropolitan Community, Ottawa, the Greater Toronto and Hamilton Area, and Vancouver and the Lower Mainland
  • 49. Climate Action and Emissions Reduction • Municipalities are creating and implementing climate action plans to reduce GHG emissions (for example, see a snapshot summary of Kingston’s plan at right) • Action plans discuss energy retrofits, EV infrastructure development, and municipal fleet conversion. • Most are aiming to transition to net zero by 2050 or before through the use of low-carbon and renewable energy sources 49 Activity in the Municipalities Source: FCM, LC3, ICLEI Canada, MCCAC Alberta, Eco-West, AFMNB, City of Kingston Sample of Key Organizations Providing Support to Municipalities • Federation of Canadian Municipalities • Low-Carbon Cities Canada (LC3) • ICLEI – Local Governments for Sustainability • Municipal Climate Change Action Centre – Alberta municipalities • Municipalities band together to support each other, such as the Eco-West group in Manitoba and the Association francophone des municipalités du Nouveau Brunswick
  • 50. Cleaner Energy Programs • Some municipalities are using natural gas to develop cleaner energy products • Edmonton and Medicine Hat in Alberta are, with the help of major industrial partners, establishing hydrogen hubs and utilizing CCUS to produce cleaner hydrogen from natural gas • Others are involved in pilot programs and trials of cleaner fuels, such as: • In Surrey B.C., 60% of natural gas used is renewable natural gas produced from waste. This is used to power city vehicles and provide heating through a district energy system • Seaspan Ferries has been exploring the use of RNG instead of LNG • Calgary-based ATCO, a gas and electricity company, has a $5.7 million pilot project in Fort Saskatchewan, Alberta, where hydrogen is blended with natural gas for home heating • Enbridge Gas has been working with Hydrogenics on a power-to-gas project in Markham, Ontario using surplus renewable electricity to produce hydrogen for storage and, possibly, blending into the natural gas grid 50 Activity in the Municipalities Source: Edmonton Hydrogen Hub, Medicine Hat Hydrogen Hub, Surrey, RNG in British Columbia, Fort Saskatchewan hydrogen blending project, Markham, Surrey Biofuel facility (photo) Surrey biofuel facility
  • 52. 52 Albertan Universities are at the Centre of O&G Research • GACG identified 61 Higher Education Research Facilities conducting research and providing services in the O&G sector • The University of Alberta and the University of Calgary are central higher education institutions in the O&G landscape • These two institutions have the most O&G related programs in Canada, with nine and six programs respectively • As of Q1 2022, 9 out of 20 (45%) Canada Research Chairs (CRC) directly involved in oil and gas came from these two universities, equivalent to at least $2.1 M/year from the CRC program while the chair is active (5-7 years, renewable once) • Between 2017-2021, NSERC collectively awarded these two universities $15.11 M, totalling 42% of the $35.54 M of awards NSERC distributed to O&G research Source: GACG Analysis and Visualization, Canada Research Chairs, Natural Sciences and Engineering Research Council of Canada Awards Database As of 2019, 33% of O&G workers had university degrees 61 Higher Education Research Facilities conducting research and providing services in the O&G Sector by province
  • 53. University of Calgary • Engaged with the accelerator Innovate Calgary, which currently works with 362 researchers and targets an annual growth of 20%, and has seen an average increase of 110% in the past four years of startups from University of Calgary • Under Innovate Calgary, UC launched $12 M UCeed, a pre-seed and seed funding program that targets commercialization • Implementing Innovation@Ucalgary as a university led accelerator for researchers looking to commercialize 53 Albertan University Research is Connected to the Greater Energy Innovation Landscape Sources: University of Alberta – Annual Report 2020-2021, University of Calgary – Annual Report 2020-2021 University of Alberta • Received $30 M from Shell to invest in a new biofuel plant which will create 25 million litres of renewable biofuel each year and create 45 full-time jobs • Partnered with Brass Dome Ventures to create imYEG, an accelerator that supports university researchers' efforts to commercialize their innovations Albertan universities are not the only higher education institutions that are working to support innovation, but their proximity to the O&G sector means that there are more directly related opportunities for the sector. For the higher education sector at large, the opportunities to commercialize higher education innovation are being developed, but there needs to be private sector engagement to implement these innovations in order for the sector to grow.
  • 54. 54 Canada Research Chairs Source: GACG Analysis and Visualisation, Government of Canada announces 119 new and renewed Canada Research Chairs; Canada Research Chairs Canada Research Chairs spends $311 M/year on attracting talent (up from $265 M in 2017), with another $102 M promised to 119 new and renewed chairs in June 2022. Professors that receive these awards are in the innovation space and receive between $100- $200 K/year for their institution depending on their tier. This meant that as of June 2022, Canada Research Chairs working in O&G innovation awarded their institutions and departments with a total of approx. $7.3 M for their work. 46 Canada Research Chairs conducting O&G Industry and related research activities by university affiliation Most of the 46 identified Canada Research Chairs conducting Oil and gas and Oil and Gas related research specialize in Chemical Engineering (8), followed by Civil Engineering (3), Environmental Engineering (3), Electrical and Electronic Engineering (3), Mechanical Engineering (3), and Other in Natural Sciences and Engineering (NSE) (3).
  • 56. Not-for-Profits (NFPs) and Networks • GACG found 53 different O&G NFPs working at the national and provincial levels • Many of the NFPs and networks are industry associations such as PTAC and PSAC – this is similar to what we were seeing in 2017, but there has still been growth in the sector beyond these associations, especially in the alternative energy space • 68% of NFPs and Networks in this space operate at the national scale in Canada, offering CRIN country- wide opportunities to network with those in the landscape • Provincially, Alberta is the central space for most of the NFPs and Networks in the O&G innovation space, with 41% of NFPs located in the province • Mitacs is a great opportunity for CRIN membership, as it is an organisation centered around connecting the private sector innovators to academic researchers – something that membership may be interested in 56 Sources: GACG Analysis and Visualisation, Foresight Canada – Annual Report 2020-21 Proliferating NFPs and Networks 20
  • 57. 57 Indigenous Involvement in Energy Innovation Source: GACG Analysis, First Nations Major Projects Coalition, Indigenous Clean Energy • Notable additions to the NFP and Network space since 2017 have been the increased presence of O&G groups that are for and by Indigenous groups • GACG found five organisations for and by Indigenous groups in the O&G innovation sector that are advocating for and promoting Indigenous presence in the space • Many Indigenous Groups are also involved in renewables and alternative energies, but these will likely play a part in the decarbonisation of the O&G sector as a whole • The nature of energy project infrastructure means that construction often occurs on Indigenous territory. Efforts are being made to better involve First Nations groups in planning and ownership of these projects • First Nations Major Projects Coalition is supporting Indigenous engagement with projects like the Coastal Gas Link and the Clarke Lake geothermal project • Indigenous Clean Energy has engaged with 197 projects in the clean technology sector and advocates for Indigenous presence in the space
  • 58. 58 International and Intergovernmental NFPs and Networks Source: Mission Innovation, International Cleantech Network International Opportunities • Canada engages with International NFPs such as the International Cleantech Network, the Oil and Gas Climate Initiative, and the Eureka Initiative through its own set of networks, NFPs, and government departments like CRIN, Foresight Canada, and the NRCan • The International Cleantech Network is a network of clean technology clusters and SMEs, offering opportunities to expand CRIN’s reach in the international space • In 2015, Canada helped found Mission Innovation, an intergovernmental NFP engaged with 22 countries and the EU, whose goal is to help clean technology become more accessible through innovation and development. In 2021, Canada became a co-lead on the new Carbon Dioxide Removal Mission
  • 59. Canada Innovation Superclusters Budget 2022 proposed to provide $750 M over six years, starting in 2022-2023, to support the further growth and development of Canada's Global Innovation Superclusters. Superclusters involve many of Canada’s top oil and gas companies as project partners 59 Superclusters Source: GACG Analysis and Visualization, ISED: Innovation Superclusters
  • 61. In 2015, DEEP Centre identified 140 Incubators and Accelerators across Canada. In 2022, GACG identified 67 incubators and accelerators in just the O&G innovation space alone 61 Incubators and Accelerators have Increased in Number Across the Country Source: GACG Analysis and Visualization, Canada’s Cleantech Investment Landscape, DEEP Centre: Evaluating Business Acceleration Location and Services • 40% of the accelerators and incubators GACG identified are working in the clean technology sector related to O&G • O&G Accelerators and Incubators are located primarily in AB, B.C., and ON • Accelerators offer multiple services, not just funding. These include co-working spaces, coaching, commercialisation advice, etc. Depending on the needs of CRIN membership, it may require different accelerators to fulfil them – CRIN can be the intermediary for their members in navigating the space
  • 62. 62 Sources: GACG Analysis and Visualization Federal and Provincial Funding Support for BAIs • GACG found that 57% of O&G Innovation Accelerators and Incubators it identified received Government funding, either Federal (5), Provincial (12), or a combination of both (20). Funding that is tied to governments usually comes with a list of commitments by the entities that are receiving that funding • Government interest in accelerators is unsurprising given Canada’s ongoing problems with commercialisation of innovation technology, but Budget 2022 is also looking to get the private sector further engaged with clean technology innovation • Technology adoption is essential for the clean tech and O&G innovation sector to have long-term growth and success. Accelerators are part of this, but they need more engagement and investment from the private sector to succeed As the centre of the O&G innovation wheel, CRIN has a huge opportunity to help promote Canadian clean technology and engage and connect private sector members to these accelerators. Furthermore, BAIs are often networks themselves, and can offer collaboration and partnership opportunities for CRIN Federal and Provincial Funding for GACG Identified BAIs
  • 63. Taking the Easy Way? • Canadian O&G accelerators are focusing a lot of their resources on digital technology and low-emissions value- added products. • 63% of accelerators were focused on digital solutions, usually either AI, IoT, or monitoring equipment. This is comparable to 60% in Low Emissions Value-Added Products, but the latter covers a much broader area with more challenging implementation • An NRCan sponsored 2021 report noted that cleantech investment often focuses on digitalisation, which is easier to innovate than most other cleantech. More difficult decarbonisation innovations, such as geothermal and hydrogen, are left out of the picture, but are necessary to achieving a net-zero O&G value-chain • The urgency to decarbonise the value chain means that every solution is a good one, but CRIN should incentivise broader investment and adoption of value-added products like geothermal, because it will be these innovations that will get us all the way to net-zero 63 Incubators and Accelerators Source: Canada’s Cleantech Investment Landscape “A closer inspection of the investment data reveals an overwhelming concentration of investment dollars in software-based cleantech plays focused on industrial efficiency, energy analytics, building automation, and smart grids. […] Canada and other countries will not meet their climate obligations pursuing software-based solutions alone.” “Software-based efficiency plays can enable incremental improvements like a 5 to 10% efficiency gain,” said one investor. “A lot of the environmental challenges require transformational hard tech that will significantly lower Canada’s carbon footprint.”
  • 64. Private Sector – Exploration & Production, Innovation, and Investment 64
  • 65. 65 Company Stakeholders in the Oil & Gas Ecosystem Source: GACG graphic from Stakeholder Database • The 200 companies listed in the GACG database illustrate the range of company stakeholders in the oil and gas and innovation sector, from exploration and production companies, service and transportation companies, refiners and distributors, and innovative technology developers, to large, vertically integrated multinational corporations with a presence in Canada. • Many of the larger producers conduct their own R&D; others rely on trusted services companies for new tech • Whilst production and service companies operate in western or Atlantic Canada with support from midstream companies, a large number of cleantech companies are located in Ontario and Quebec. (Size of point represents relative number of companies) Location of Representative Company Stakeholders
  • 66. 66 Cleantech in the O&G Sector Source: ECCC, 2030 Emissions Reduction Plan; Cleantech in the O&G sector; Cleantech Regulatory Review Roadmap; Cleantech Group, Labour Market Outlook 2021-2023, NRCan Energy Factbook 2021-2022, Canadian Industry Statistics • Clean technology companies contributed $31 B to Canada's GDP in 2020 and created at least 211,000 jobs. The presence of success in clean technology has the potential to be complimentary to O&G, as it will help increase longevity in the sector (that as of 2021 has lost 954 companies since 2016), as well as incentivise workers who may otherwise hesitate in light of environmental concerns to join the sector, addressing the 2021-2023 labour market outlook need for 20,000 workers in the field to account for an aging workforce and industrial activity • The 2021 Global Energy Innovation Index has Canada in the 9th place, up 4 places from 2016, behind the United Kingdom, the Netherlands, and Germany but ahead of France, Korea, the United States, China, and Brazil. • There are multiple clean technology innovations already in existence to help decarbonise oil and gas all along the value chain, they just require adoption. CRIN’s position as a network puts them in the optimal place to encourage private sector adoption of O&G cleantech Cleantech is any product, process or service that improves operational performance, productivity, or efficiency while reducing consumption, waste, or environmental pollution.
  • 67. Capital expenditures for oil and gas extraction in 2020 totalled $21.4 B, down from $35 B in 2019 and $54.5 B in 2015. 67 The Heart of the Business Source: Statistics Canada 2021, BERD, OECD Canada is lagging behind peer countries in Business Expenditures on R&D (BERD) • Canada’s total BERD: $20,972 M • BERD/GDP: 0.86% (2020 OECD average 1.92%) • BERD/GDP OECD Ranking: 24th out of 37 R&D expenditure in the O&G sector is also falling • After two years of strong spending by the O&G sector in in-house R&D ($942 M in 2018 and $891 M in 2019), the sector saw a three-year drop to $524 M in 2022, a 44% decrease compared to 2018 and 41% compared to 2019.
  • 68. 68 Canada’s Corporate Big R&D Spenders Source: Sector spending; Top 100 corporate spenders Nine out of Canada's Top 100 Corporate R&D Spenders are energy / oil & gas and mining companies • In 2020, despite the overall decrease in R&D expenditures, Canada’s oil & gas sector spent over $1.1 B on cleantech R&D Canada's Top 100 R&D Firms (2021) • R&D spending by O&G / Energy Sector companies puts the sector in 4th place behind Pharmaceuticals, Software, and Telecommunications Suncor Energy, Canadian Natural Resources, Imperial Oil, Syncrude and TC Energy invested a total of about $1.1 B in R&D in 2020
  • 69. Total in-house energy-related research and development expenditures, with fossil fuels technologies breakout, 2009-2020 • Fossil fuel-related in-house R&D decreased by 10.3% to $558 M in 2020, the height of the Covid-19 pandemic, compared to $928 M in 2009, whilst other energy-related R&D increased from $386 M in 2009 to $1.2 B. 69 In-house energy-related R&D expenditures Source: In-house energy-related R&D expenditures
  • 70. 70 Private Equity Investment in Canadian Companies Source: CVCA – Canadian Private Equity Market Overview, CVCA – Private Equity Key Findings, VE &PE Canadian Market Overview 2016, GACG Analysis and Visualisation Private Equity (PE) invested in Canadian companies in 2021 was $18.1 B, 32% higher than in 2015 and 29% higher than in 2020 Total number of deals completed in 2021: 536 (2015), 634 (2020), and 799 (2021) Cleantech was one of the top sectors in PE investment growth in 2021 and saw an increase of 189% over 2020 investment (see at right). The sector still needs support to continue to grow. 84% of businesses that received investment were SMEs, but 49% of the owners of SME businesses surveyed by the BDC and CVCA in a 2019 survey indicated they would be retiring in the next five years and would sell their business. Cleantech Energy and Power 0 5 10 15 20 25 30 $- $500 $1,000 $1,500 $2,000 $2,500 2016 2017 2018 2019 2020 2021 Private Equity Investments in Cleantech Value in $M Number of Deals
  • 71. With $746M in investments, 2021 saw an increase of 57% invested over 2017, and while the number of deals was the same as in 2018, the dollar value was double the value 71 Venture Capital and Angel Investment in the Canadian Cleantech Space Source: CVCA - Venture Capital Market Overview, NACO - Angel Investment Venture Capital invested in Canadian companies in 2021 was $14.7 B, more than 3.5 times the 2017 figure and twice the amount in 2020 Canadian Angel Investment (2021) Total number of angels: 416 Total amount invested: $102.9 M $414 $278 $400 $101 $746 28 49 27 22 49 0 10 20 30 40 50 60 $0 $100 $200 $300 $400 $500 $600 $700 $800 2017 2018 2019 2020 2021 $ Millions Invested Deals Venture Capital Investments and Deals in the Cleantech Space ICT Energy Cleantech 35% 2% 1% Percentage invested by angel investors in 2021 by Sector. Cleantech is last in the group, showing a gap in support
  • 72. Who is using the Oil and Gas that Canada Produces? 72
  • 74. Total energy demand in Canada in 2019 was 12,305 petajoules • 52% of this was from industry and 23% from transportation • Refined petroleum products accounted for 40% of consumption and natural gas 36%. • Canada consumes 1.5 million barrels of oil per day, 2.5% of global consumption and an average of 11.4 billion cubic feet per day of natural gas • The largest consumers of natural gas were Alberta at 6.4 Bcf/d, followed by Ontario and B.C. 74 The Canadian Domestic Market Demand for Energy Source: Canada Energy Regulator, CER – Canada's Energy Future 2021, Statistics Canada 2022, CAPP, Energy Factbook 2021–2022 As of 2019, more than half of the electricity in Canada (60%) is generated from hydro sources. The remainder is produced from natural gas, nuclear, wind, coal, biomass, solar, and petroleum Canadian Electricity Production by Power Source (2019)
  • 75. 75 The Canadian Domestic Market Demand for Energy in Transport and Residential Sectors Source: Canada Energy Regulator, CER – Canada's Energy Future 2021, Statistics Canada 2022, CAPP, Energy Factbook 2021–2022 0 10 20 30 40 50 2016 2017 2018 2019 2020 Billion litres Net sales of gasoline Net sales of diesel oil Net Sales of Gasoline and Diesel The Residential Sector • 1.35 gigajoules of energy were used in the residential sector in 2019: almost 70% of this was derived from petroleum – natural gas, oil, and propane. • Natural gas is the most common form of energy used in Canadian homes (50%) • Almost 75% of Canada’s 250 remote communities use heating oil or propane for home heating Transportation Fuels • Consumption of motor gasoline and diesel in Canada in 2020 was 38.6 billion litres, down 13.9% from 2019 due to reduced demand in the pandemic • High fuel prices in 2022 may disincentivise the purchase of transportation fuels, but the pace of the post-Covid economic recovery and high inflation will have an impact on the degree to which this disincentive is felt The residential sector is a substantial user of electricity, accounting for 31.7% of total energy us in 2018.
  • 76. 76 Downstream Oil and Gas: Petrochemicals in the Canadian Domestic Market Petrochemicals • Petrochemical products include plastics, rubbers, resins, synthetic fibres, adhesives, dyes, detergents, pesticides, and petroleum-derived paints and coatings • Canada’s petrochemical industry is dominated by the production of ethylene from ethane and downstream derivatives from ethylene. These derivatives are precursors to a wide range of useful consumer and industrial products. Petrochemicals Product Flowchart Source: Non-energy Uses of Refined Petroleum, Sturgeon Refinery, Air Products, Suncor/ATCO, Petrochemicals Products and Flowchart 0 5000 10000 15000 20000 Total Petrochemicals Naphtha Asphalt Lubricating Oil & Greases Megalitres Non-Energy Uses of Refined Petroleum 2020 2019 2018 2017 Market size of the petrochemical industry in Canada is $6.2 B, showing a growth of 1.1% in 2022
  • 78. • In 2020, Canada was ranked 3rd in the world for exports of crude oil. 82% of Canadian crude was exported, much of it to the U.S. • Canada’s world rank as a natural gas exporter dropped from 4th to 6th in 2020. The percentage of gas production exported dropped from 51% to 42% • Canada exported only 15% of its production of refined petroleum products in 2020, a fall from 26%, 92% of which went to the U.S. 78 Global Oil & Gas Markets: Exports and Imports Source: GACG Analysis and Visuals, NRCan Energy Factbook, 2021–22; Canadian Energy Regulator, OEC, Statistics Canada 2022, CAPP Statistical Handbook, Canada Energy Regulator 2021 saw the value for crude oil exports increase by nearly $40 B, a substantial bump from 2020 numbers. Natural gas also saw a bump, although less significant. • Canada imported $14.7 B of crude oil, $3.4 B of liquefied petroleum or hydrocarbon gases Sources of Canadian Oil Imports Energy products were the 7th top merchandise import in 2021, for a total value of over $31 B
  • 79. The global cleantech market is projected to exceed $3.3 T in 2022, about 2% of anticipated global GDP • Canada’s share of the export market is estimated at only 1–2% • In 2019, Canada’s environmental and cleantech exports, including clean energy totaled $13.5 B • The Federal Government’s target for cleantech exports by 2035 is $20 B, requiring above 11% growth per year 79 The Global Cleantech Market is an Opportunity for Export Diversification Source: Global Cleantech 100 Canada ranked 2nd on the 2022 Global Cleantech Innovation Index, behind the U.S • The Global Cleantech 100 lists the cleantech companies likely to have a significant market impact over the next 5-10 years. • Canada is the second most represented country in the list after the U.S. with 13 start-ups, many of them opening doors in the Canadian energy sector as well as global markets Canada’s Cleantech Export Destinations
  • 80. Canada improved its ranking for outward flows from 7th to 6th, but dropped seven places for inward flows, from 5th to 12th • The value of outward flows increased by 93.2% between 2020 and 2021, to nearly $90 B • The value of inward flows increased by 157% to nearly $60 B 80 Foreign Direct Investment Source: World Investment Report 2022, WIR Canada; State of Trade 2021, Statistics Canada; FDI in mining, oil & gas, FDI in mining, oil & gas, FDI in oil & gas extraction Most of the foreign capital in Canada is invested in 3 sectors Manufacturing Mining and oil & gas extraction Management of companies and enterprises • Total inward FDI for oil and gas extraction in 2021 was $104 B, an increase on the 2020 figure but down on pre-pandemic investment • The share of inward investment for the sector decreased from a high of 23.4% in 2014 to 18% in 2020 • Foreign businesses account for one-third of all employment in mining, oil & gas extraction
  • 81. Looking Forward to 2030 and 2050 81
  • 82. In 2021, Canada published its updated Nationally Determined Contributions to the United Nations Framework Convention on Climate Change (UNFCCC), pledging to reduce emissions by 40–45% from 2005 levels by 2030. This was a major increase from the 30% reduction pledged in 2016. Canada also confirmed its 2019 commitment to reach net-zero emissions by 2050. 82 The Pathway to 2030 Source: NDCs, Canada’s projected GHG emissions to 2030, 2030 Emissions Reduction Plan Canada’s Projected GHG Emissions to 2030 Projections are based on current understandings of emissions reduction potential. The 2030 Emissions Reduction Plan: Canada’s Next Steps for Clean Air and a Strong Economy is a sector- based roadmap to reaching the 40% emissions reduction target. • An interim objective for 2026 will be a reduction of 20% below 2005 levels. • In the Pathway to 2030, the emissions reduction contributions required of the oil & gas sector increase sharply as 2030 approaches. • Innovative technologies will be key to reducing carbon intensity and achieving emissions reductions.
  • 83. If Canada is to achieve net zero by 2050 a longer-term action plan is needed. In Canada’s Energy Future, 2020, the Canada Energy Regulator changed its primary scenario from the Current Policies Scenario to a new Evolving Policies Scenario. These scenarios are models indicating potential pathways to 2050; they are not action plans. 83 Scenarios for Canada’s Energy Future to 2050 and Beyond Source: Canada’s Energy Future, Canada’s Energy Future, 2021: scenarios and assumptions The Evolving Policies Scenario assumes that action to reduce GHG intensity continues to increase. • This scenario anticipates greater global climate action and lower oil prices. The Current Policies Scenario assumes no additional action to reduce GHGs in Canada’s energy system beyond policies already in place. • In this scenario, total primary demand increases by 7.5% from 2021 to 2050. The slides following summarize these scenarios as they relate to the oil & gas sector. The Towards Net Zero Scenarios focus specifically on future electricity generation.
  • 84. In the Evolving Policies Scenario: • Total primary demand falls 21% between 2021 and 2050, driven by reductions in fossil fuel use. • The relative share of refined petroleum products (RPPs), coal, and natural gas without CCUS declines. • Combustion of fossil fuels without emissions capture decreases 62% by 2050, a significant reduction but unlikely to achieve net zero. 84 Energy Demand to 2050 in the Evolving Policies Scenario Source: Canada’s Energy Future 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Petajoules Unabated Fossil Fuels Low and Non-Emitting Demand for low-emission energy increases • In 2021, unabated fossil fuel energy demand was about 9,300 petajoules (PJ), that for low-emissions fuels is about 4,200 PJ. • By 2050, the demand for unabated fossil fuel energy is projected to fall to 3,500 PJ, whilst that for low-emission energy rises to 7,200 PJ. Energy Demand to 2050 by Source Government and industry, with support from CRIN and stakeholders in cleantech R&D and innovation, need to work together to ensure the oil & gas sector can meet the challenge.
  • 85. In the Evolving Policies Scenario, crude oil production grows more slowly, rising 16% to a peak of 5.8 MMb/d in 2032 before declining slowly to 4.7 MMb/d in 2050. The assumed price of Brent crude falls from an average of US$68 per barrel in 2021 to US$40 per barrel in 2050. 85 Canadian Oil Production to 2050 Source: Canada Energy Future, 2021 Crude oil production to 2050 – Evolving Policies Scenario Dashed reference line shows the trend under the Current Policies Scenario  In this scenario, oil available for export from western Canada is slightly below the illustrative total export capacity via existing and planned pipeline and rail capacity. In the Current Policies Scenario, production peaks at 6.7 MMb/d in 2044. This scenario assumes higher global oil prices, about US$70, due to higher demand.  In this scenario, production would be constrained below projected levels, as supply significantly exceeds the illustrative export capacity. In either scenario, based on these production assumptions, existing and planned export infrastructure capacity is below the level that will be required by 2050. This has major implications both for the sector and the economy. Canada is greatly dependent on the U.S. export market and therefore vulnerable to changes in its energy policy.
  • 86. In both the Current and Evolving Policies Scenarios, gas production from the Montney Formation, which is rich in higher- value natural gas liquids, increases. Elsewhere, production is stable or declining to 2050. 86 Natural Gas Production and Export to 2050 Source: Canada’s Energy Future, 2021  In the Evolving Policies Scenario, production declines slowly to reach 13.1 Bcf/d by 2050, about 17% lower than the current level.  By 2050, nearly 40% of Canadian natural gas production is assumed to be liquefied for export to global markets. Much of this growth will be in B.C.  Without LNG exports, production is projected to decline.  It is assumed that natural gas prices will steadily increase to about US$3.64/MMBtu by 2050. In the Evolving Policies Scenario, natural gas production is assumed to decline after 2025, whereas exports of LNG are projected to increase. These data do not take into account greater opportunities in the European market as a result of geopolitical events. Increased exports are likely to require construction of additional LNG terminals. However, in recent years a number of such projects did not materialize or have been cancelled. Natural Gas Production to 2050 – Current and Evolving Policies Scenarios Dotted reference lines show LNG export projections
  • 87. • Low and non-emitting electricity generation is modelled to rise to 88% by 2030 and 95% by 2050. • All net-zero electricity generation scenarios include both natural gas and natural gas with CCUS components, as well as hydrogen and renewables in varying amounts. • The electricity generation mix will be distinct across the provinces – about 15% of Alberta and Saskatchewan’s electricity generation will utilize natural gas but by 2050 most will be utilizing CCUS technology. Other provinces, particularly New Brunswick, Nova Scotia, and Ontario, will include lesser amounts of natural gas, without CCUS. • Inter-province transmission of clean energy generation can be a path to net zero. 87 Towards Net-Zero Electricity Generation Source: Canada’s Energy Future, 2021 Electricity Generation by Source to 2050 The requirement for natural gas with CCUS as an electricity generating resource increases to 2050. If this target is to be met, new and more efficient technologies for carbon capture and recycling are urgently required as well as a much greater proven capacity for carbon storage.
  • 88. The Evolving Policies Scenario projects that demand for natural gas with CCUS for industrial use, power generation, and hydrogen generation will be key areas of growth. 88 Declining Demand for Oil and Gas to 2050 Source: Canada’s Energy Future, 2021 • Over the long term, natural gas will remain an important part of Canada’s energy mix, but total demand is projected to decline from around 13 billion cubic feet/day (bcf/d) in 2021 to 8.5 bcf/d (34% decrease) in 2050 due to increased use of renewables, the blending of hydrogen or renewable natural gas with natural gas, and increased energy efficiency. • CCUS partially offsets the decline in demand. • Demand for refined petroleum products (RPPs) and natural gas liquids gradually also declines due to reduced demand for diesel and gasoline but the use of RPPs in industry remains steady. Declining Demand for Oil and Gas by Sector The Evolving Policies Scenario foresees a substantial decline in demand for oil and gas without CCUS in all sectors except transportation, which increases. Deployment of CCUS is key to partially offsetting this decline, but only accounts for 3.9 bcf/d.
  • 89. CRIN, as a network of networks, with its focus on reducing the carbon intensity of fossil fuels and GHG emissions and its encouragement and support for innovation and cleantech and for low emissions value-added products, has a major role to play in bringing together all stakeholders and conveying a sense of urgency to support the sector’s successful transition to 2050. 89 The Oil & Gas Sector in 2050 Fossil fuels have a significant place in Canada’s domestic market, whilst exports are seen as critical to the country’s economic growth and to funding the transition to a low-carbon economy. • Oil and gas companies along the value chain are endeavouring to make significant reductions in GHG emissions, even to reach net zero, through investment in innovative processes and clean technology. • Major technologies that are already contributing to emissions reductions include enhanced oil recovery and carbon capture, utilization, and storage, with the latter also supporting the development of low-carbon hydrogen. Improved sensing technologies also aid the detection and reduction of fugitive methane emissions. CCUS is key to the ongoing use of natural gas across the economy. • The oil and gas sector will remain an important part of Canada’s energy mix leading up to and beyond 2050, particularly in those provinces where oil and gas are produced. With new and innovative technologies, cleaner oil and gas can provide a foundation for reduced lifecycle emissions (the aggregate of emissions from fuel production to final product development and delivery) across many industries and thus help to reduce Canada’s carbon footprint to 2050 and beyond.
  • 90. 90 The Global Risks Landscape, 2022 Source: The Global Risks Report 2022, Budget 2022 Risk Landscape Assessment, GACG Analysis Critical Risks Facing the World Respondents to the 2021-22 Global Risks Perception Survey identified environmental and societal risks as predominant over the next five years, together with a growing debt crisis. Climate action failure is rapidly becoming the most critical threat to the world. Five years from now, the top five global risks are all environmental. Canada needs all parties to be on board with the transition to net zero, and CRIN is key to stimulating and sustaining action in the oil and gas sector and supporting transformational technologies.
  • 92. 1. Double the value of Canadian cleantech exports by 2025. 2. Align carbon pricing standards with international peers. 3. Deliver on Canada’s G20 commitment to phase-out all inefficient fossil fuel subsidies by 2025. 4. Develop and adopt innovative, collaborative cleantech solutions to lower GHG emissions. 5. Create new markets for low-emission goods. 6. Develop a comprehensive CCUS strategy and explore other opportunities to help keep Canada globally competitive. 7. Create and maintain immediate, good-paying, middle class jobs to support Canada’s economic recovery 8. Build green, more resilient and sustainable regional economies. 9. Ensure that implementation of energy efficiency measures contributes to GDP growth. 92 Economic Results Source: 2030 Emissions Reduction Plan, From Outsized Emissions to Outsized Opportunities, A Healthy Environment and a Healthy Economy
  • 93. 1. Drive essential, near-term greenhouse gas reductions to ensure Canada exceeds its 2030 target 2. Achieve emissions reductions to 31% below 2005 levels in 2030 (or to 42% below 2019 levels). 3. Incentivize the development and adoption of CCUS for a range of sectors. 4. Accelerate the reduction in methane emissions by 40-45%. 5. Develop and implement plans to transition O&G facilities to net- Zero by 2050. 6. Phase down use of Hydrofluorocarbons (HFCs) to support Canada’s commitment to the Montreal Protocol amendment 6. Reduce the fresh water-use intensity for drilled oil sands projects by 50% compared to 2012 by 2022. 7. Phase out coal-fired electricity by 2035 and ban thermal coal exports by 2030. 8. Conserve 25% of Canada's land and 25% of its oceans by 2025. 93 Environmental Results Source: A Healthy Environment and a Healthy Economy; Budget 2022, Emissions Reduction Fund, From Outsized Emissions to Outsized Opportunities, 2030 Emissions Reduction Plan, Pan-Canadian Framework on Clean Growth and Climate Change
  • 94. 1. Increase racial and ethnic and gender diversity of O&G workforce groups. 2. Support Indigenous-led projects in support of adaptation planning, clean energy, health, infrastructure, and climate monitoring. 3. Prepare the workforce to fully participate in the low- carbon economy while minimizing the impacts of labour market transitions. 4. Create inclusive economic opportunities for workers in their communities. 5. Provide skills training and fair wages to traditionally underrepresented groups. 6. Ensure infrastructure resiliency including in vulnerable regions. 7. Help traditional ways of life and economic sectors thrive in a changing climate. 94 Social, Equity, and Diversity Results Source: Pan-Canadian Framework on Clean Growth and Climate Change, From Outsized Emissions to Outsized Opportunities, Just Transition for Canadian Coal Power Workers and Communities, Just Transition, Sectoral Workforce Solutions Program, Gender, Diversity, and Inclusion Hub
  • 95. CRIN at the Centre of the Oil & Gas Innovation Ecosystem 95
  • 96. CRIN is a network of networks with over 3,300 members • CRIN was awarded $100 M of SIF funding to invest in clean technology over the period 2020-2024 96 CRIN’s Vision and the Network’s Background CRIN Themes Digital Oil and Gas Technology Cleaner Fuels – Reducing Carbon Intensity Low Emissions Novel Hydrocarbon Extraction Land and Wellsite Remediation Methane Monitoring, Quantification, and Abatement Water Technology Development Value Added Products Source: CRIN CRIN's $80 M Technology Competitions are aimed at the oil & gas industry to accelerate clean technology development and commercialization. Three major technology competitions to date: 1. $50 M Reducing Environmental Footprint Technology Competition 2. $25 M Low Emission Fuels and Products Technology Competition 3. $5 M Digital Oil and Gas Technology Competition “We are a pan-Canadian network focused on ensuring Canada’s oil and gas resources can be sustainably developed and integrated into the global energy supply” CRIN’s Vision is that Canada is the global leader in producing clean hydrocarbons from source to end use
  • 97. 97 CRIN at the Centre of the Oil & Gas Innovation Ecosystem Source: CRIN Enabling cleaner energy development in the oil & gas industry • Commercialising and adopting technologies that reduce the environmental impact across the energy sector and that support Canada’s clean energy goals and Paris commitments • Transforming the pace of innovation in the sector • Creating new value-add products and business streams • Growing Canadian cleantech companies with the potential for export • Changing the broader conversation to recognize the compatibility between energy development and use
  • 98. 98 CRIN at the Centre of the Oil & Gas Innovation Ecosystem Source: CRIN Fossil fuels will continue to have a significant place in Canada’s domestic market, whilst exports are seen as critical to the country’s economic growth and to funding the transition to a low- carbon economy. • Oil and gas companies along the value chain are endeavouring to make significant reductions in GHG emissions, even to reach net zero, through investment in innovative processes and clean technology. • Major technologies that are already contributing to emissions reductions include enhanced oil recovery and carbon capture, utilization, and storage, with the latter also supporting the development of low-carbon hydrogen. Improved sensing technologies also aid the detection and reduction of fugitive methane emissions. CCUS is key to the ongoing use of natural gas across the economy. • The oil and gas sector will remain an important part of Canada’s energy mix, up to and beyond 2050, particularly in those provinces where oil and gas are produced. With new and innovative technologies, cleaner oil and gas can provide a foundation for reduced lifecycle emissions (the aggregate of emissions from fuel production to final product development and delivery) across many industries and thus help to reduce Canada’s carbon footprint to 2050 and beyond. CRIN, as a network of networks, with its focus on reducing the carbon intensity of fossil fuels and GHG emissions and its encouragement and support for innovation and cleantech and for low emissions value-added products, has a major role to play in bringing together all stakeholders and conveying a sense of urgency to support the sector’s successful transition to 2050.