Q2 Newsletter June 30, 2026
World Energy Council: A Century of Leadership in Energy
From April 26 to April 29, 2027, the World Energy Council will hold the next session of the World Energy Congress in Riyadh, Saudi Arabia. This will be the 27th session of the Congress. Its theme will be Inspiring Transformations, Delivering Transitions.
The World Energy Council (the Council) has been in existence for over a century. It was established by Daniel Dunlop, an industrial organizer and philosophical thinker of the late 19th and early 20th century. He founded the World Power Conference in 1923, which later became the World Energy Congress. The Council grew out of the Congress sessions and serves as their permanent secretariat. A Congress meeting is held every 3 years. The Council has a adopted as its mission: to promote the sustainable supply and use of energy for the greatest benefit of all people. The organization promotes a vision it calls “humanizing energy.” It does this by bringing together leaders from all of the segments of society that have an influence on the way we produce, sell, and use energy. Humanizing energy means making every effort to ensure that changes in the energy ecosystem are directed towards enhancing human welfare. The objective is to minimize or, preferably eliminate entirely, instances where people must adapt to changes the energy sector imposes upon them.
The Council aspires to be comprehensive in its coverage of the energy sector. It comprises more than 3,000 organizations, situated in over 100 countries. The Council draws on a heterogenous mixture of institutions and individuals. It includes governments, corporations (both private and state), academia, and civil society and claims to be the world’s leading member-based global energy network and the only truly international and impartial energy organization.
Canada is no longer a member of the Council. At one time, the Energy Council of Canada served as the organization that represented Canada in the Council, supported by Natural Resources Canada. In recent years the department chose to withdraw our participation, although it remains an option as a part of the country’s approach to international energy.
In the years Canada was a member of the Council, we hosted the World Energy Congress on one occasion (*), in Montreal in 1989. The theme of the Congress was Energy for Tomorrow. Five themes dominated the event:
- Third-world energy concerns
- Energy security and global demand
- Sustainable development
- Environmental change
- Energy technology and innovation.
The critical questions discussed were not much different than the issues that pre-occupy us today.
- Are global energy resources sufficient for industrialized and developing nations?
- Will energy be reasonably priced?
- Will R&D deliver supply enhancements and efficiency advances in an effective and timely way?
- Can energy production that is environmentally acceptable sustain economic growth?
The World Energy Council has been the most durable of international energy organizations. It has proven to be effective in bringing together decision-makers in the various segments of the international energy sector. Its Congress sessions, in addition to the research it sponsors and conducts, help to build a consensus agenda for energy leaders.
(*CORRECTION: Canada hosted the World Energy Congress on 2 occasions – in 1984 and 2010, both times in Montreal.)
IN THE NEWS
April
Minister Announces New Nuclear Energy Policy
In late April, at the Canadian Nuclear Association Conference, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced that Natural Resources Canada (NRCan) is developing a new Nuclear Energy Strategy for Canada, to be released by the end of 2026.
It will focus on growing Canadian industry in order to achieve energy affordability and security at home while seizing the global opportunity of a global industry that is expected to grow by up to $200 billion per year by 2030. Working in partnership with provinces and territories, utilities, industry, Indigenous partners and labour, a targeted nuclear energy agenda will help Canada expand our grid, electrify our economy, create thousands of jobs, unlock trade diversification opportunities and secure our energy supplies at home.
The Strategy will be structured around four pillars:
- enabling new builds across Canada;
- being a global supplier and exporter of choice;
- expanding uranium production and nuclear fuel opportunities; and
- developing Canadian nuclear innovations (including botrh fission and fusion).
Energy Price Increases Account for Bulk of Year over Year Inflation for April
Statistics Canada reported April inflation of 2.8%. That number masks the energy price increase over the 12-month period of 19.2%, with gasoline prices up 28.6%. While the switch to a summer fuel blend had an impact, the conflict in the Middle East and especially the restriction on oil movement through the Strait of Hormuz explains most of the increase. cbc
May
Canada Energy Regulator Releases Scenario Analysis to 2050
Canada Energy Regulator (CER) released its updated scenario analysis of energy supply and demand to 2050. The publication is entitled Canada’s Energy Future 2026: Energy Supply and Demand Projections to 2050.The analysis is not intended to be a prediction.
CER analysts have identified 4 drivers of energy supply and demand. They are, domestically, GDP growth, LNG exports, and the energy demand from data centres. Internationally, CER considers potential oil and gas prices. By selecting different values for those factors the document presents 4 scenarios. They are:
- current measures
- higher scenario (all 4 factors exceed current measures assumptions)
- lower scenario (all 4 factors are less than current measures)
- net-zero GHG by 2050 (oil and gas demand is down, global action on climate change, falling clean technology costs)
The following graph illustrates the outcomes of the CER model, given the four scenarios. CER
Canada Announces National Electricity Srategy
In May, Natural Resources Canada released A National Electricity Strategy for Canada. The Strategy has two objectives. The first is to increase electricity supply to meet, what is expected to be, significantly greater demand by 2050. The second objective is to support the electrification of the economy through the displacement by electricity of other energy sources.
The Strategy responds to the expected increase in electricity demand, from both existing users and new users. It would enhance Canada’s competitive position with respect to other major economies which are strengthening their electricity systems. It would also contribute to energy security, economic sovereignty, and the achievement of our climate goals.
The government has characterized Canada’s position as follows:
Canada is entering this critical moment with a strong competitive advantage: a reliable, low-cost, low-emission electricity system that ranks among the most affordable in the world, with abundant, affordable natural resources to help generate additional power. This achievement, built over decades, reflects the leadership and sustained investment of provinces and territories, utilities, generators, system operators, and ratepayers. This foundation must now be both protected and strengthened in the face of rising demand and a more complex global environment. Recognizing that a stronger, more resilient grid will, in turn, strengthen Canada’s overall energy security, the task facing Canadians will be to carry these advantages forward. This means scaling the electricity system to meet the country’s growing needs, while preserving affordability for businesses and households.
June
BC Hydro delays plan to phase out natural gas generation
In a filing with the BC Utilities Commission, BC Hydro has stated that will keep its natural gas-fired generating facilities at Campbell River and Fort St. John operating until the end of the decade. The company has modified its demand forecast in light of expected mining activity in the province and the impact that AI data centres have had on electricity demand generally in North America.
energynow.ca
LNG Canada contemplating Phase 2 expansion at Kitimat export facility
30 June 2026 will mark the one-year anniversary of LNG Canada’s first tankerload departing its facility at Kitimat, British Columbia. It is expected that before the end of 2026 the company will have made the decision whether to proceed with phase 2 of the project. That would double the plant’s export capacity from 14 million tonnes annually to 28 million tonnes. It is expected that a decision to move forward would require the capacity of Coastal GasLink Pipeline, which delivers Alberta natural gas to the LNG facility, to also be expanded. The net result of the expansions would be to significantly enhance Canada as a participant in the international LNG market.
energynow.ca
Indigenous groups declare support for Ksi Lisims LNG project in B.C.
Three indigenous groups in British Columbia have voiced their support for the Ksi Lismis LNG project currently being developed by the Nisga’a Nation, The Lax Kw’alaams Band, Metlakatla First Nation, and Gitxaala Nation have all signed benefits agreements with the project. The support is not unanimous, however. Hereditary chiefs of the Gitanyow Nation, as well as some leaders from the Gitxaala Nation remain opposed.
The final investment decision is expected to be made later this year. In the interim, the German utility, Uniper, has signed a preliminary agreement to take 1 million tonnes of LNG annually. The preliminary terms of the arrangement would see Uniper contracting with Ksi Lismis and then, making use of a liquid international market, trading the LNG to Asian customers for contracts held by those customers but sourced closer to Europe. The hope is that such an arrangement could set a model for other European customers.
BY THE NUMBERS
Approximate annual economic share (Canada, latest available)
Rank | Sector | Share of GDP (%) |
1 | Real Estate, Rental & Leasing | ~13.5% |
2 | Wholesale & Retail Trade | ~10.5% |
3 | Manufacturing | ~10.0% |
4 | Mining, Oil & Gas Extraction | ~9.0% |
5 | Finance & Insurance | ~7.5% |
6 | Healthcare & Social Assistance | ~7.5% |
7 | Construction | ~7.0% |
8 | Public Administration | ~6.5% |
9 | Professional & Technical Services | ~6.0% |
SOURCE: tradeonline.ca
The Canadian economy is heavily weighted in favour of services. However, energy and mining account for a substantial portion of GDP. As the table above illustrates, Canada’s largest economic sectors are real estate, wholesale and retail operations, and manufacturing. Following close behind is mining and energy at 9 per cent. This portrait of the economy does not break out those services that are wholly or largely dedicated to natural resource development. Canada’s resource wealth is a source of strength for the country. At the same time, its economic development presents us with unique challenges. Two examples of those are environmental protection and respect for the rights and traditions of Indigenous Canadians.
Approximate annual production and economic share of energy sources in Canada
(latest available)
| Energy type | Physical production (typical recent year) | Approx. value of production (CAD, billions) | Approx. share of Canadian GDP (%) |
|---|---|---|---|
| Electricity | ~650 TWh generated | ~CAD 45–55B | ~1.5–2.0% |
| Oil (crude & equivalents) | ~4.8–5.0 million bbl/day | ~CAD 120–150B | ~4–5% |
| Natural gas | ~180–190 billion m³/year | ~CAD 35–45B | ~1–1.5% |
| Uranium (U₃O₈) | ~7,000–8,000 tonnes/year (after restart of major mines) | ~CAD 1.5–2.5B | ~0.05–0.1% |
SOURCES: Energy Fact Book and Statistics Canada
The energy component of the energy and mining sector accounts for ~6.55 – 8.60% of recent GDP. The bulk of that is accounted for by oil and natural gas. The relative size of the industry is an imperfect indicator of its importance. Oil and gas are produced regionally in Canada and the industry has a disproportionate effect on some regions.