Low oil prices offer chance to spur G7 energy transition: Canada

Mon May 2, 2016 7:57am EDT
 
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By Osamu Tsukimori

KITAKYUSHU, Japan (Reuters) - Energy ministers of the leading Western economies are discussing ways to create opportunities from the oil slump that include a push for more electric vehicles, Canadian Natural Resources Minister Jim Carr told Reuters on Monday.

Members of the G7 include major auto-producing countries such as Japan and Germany, which benefit from cheaper oil but have been hit by fuel consumption and emissions scandals.

In a push to regain the initiative, Germany last week announced the launch of a 4,000-euro-per-electric-vehicle subsidy.

For G7 member Canada, a major oil and natural gas producer, an oil price fall of some 70 percent since mid-2014 means economic pain, but the Canadian energy minister said that the slump also opened up an opportunity.

"Prices are low. Investment is down but we see this also as an opportunity to prepare for a transition phase in the energy economy, and we were discussing that over these last two days at the G7 ministerial meeting," he said on the sidelines of the G7 energy ministers' meeting in Kitakyushu, southwestern Japan.

"In the case of Canada, we have tabled a budget in the House of Commons that will invest significantly in this transition through electric vehicles, green technologies, green infrastructure."

Canada still plans to export liquefied natural gas (LNG) despite low energy prices, a current abundance and the delay and cancellation of some projects.

"Our policy objective is that Canada should be an exporter of LNG both on the east coast and the west, and the geography is favorable to a Canadian-Japanese relationship," he said. "We also have some hope that there will be an LNG industry that develops on the east coast of Canada for export to Europe."   Continued...

 
Canada's Natural Resources Minister Jim Carr speaks during Question Period in the House of Commons on Parliament Hill in Ottawa, Canada, January 25, 2016. REUTERS/Chris Wattie