The theoretical paper includes a review of the previous theoretical work or a survey on a current issue discussed in the academic literature.
Introduction: Discuss about your motivation, present your main question(s), objectives, and methodology.
Main section: Review the most important previous studies, present your model (if applicable), describe your data (for empirical work), present your results and analyze.
Conclusion: Provide a summary of the finding and discuss about possible shortcomings and caveats or future work.
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Recent Trend In Energy Consumption In Canada
Canada is among the leading producer, consumer, and exporter of energy in Europe. The country produces and supplies both renewable and non-renewable energy, with oil constituting the largest part of the state’s energy portfolio. Studies show that Canada produces about 4.3 million oil barrels every day (Hansen et al., 2018). Some of this oil is domestically consumed while a large portion is exported to other nations. Besides oil energy, renewable energy sources, such as wind and solar, provide 16 percent of Canada’s total energy supply (“Renewable energy facts,” n.d.). Over the past few years, energy consumption in the country has shifted significantly, creating a paradox regarding energy production and consumption dynamics in the state. In light of this claim, this research paper aims to analyze the recent trend in energy consumption in Canada and the potential economic implication of the pattern.
Questions
What is the current trend of energy consumption in Canada?
What factors cause this trend of energy consumption?
What is the economic implication of this trend in the long run?
Methodology
This research will mainly rely on secondary data associated with the topic of interest. Prior research, case studies, and other secondary sources such as conference papers and government reports will be used to explore the trend of energy consumption in Canada. The research will then synthesis the gathered information and generate a conclusion that addresses the three key questions.
Literature Review
Empirical Evidence
Statistics by Canada’s government shows a considerable increase in energy consumption after the initial decline during the global economic recession. According to a government report, Canada’s energy consumption had increased about 2.2 percent to approximately 7,622 petajoules in 2010 (“Energy”, 2016). Arguably, this rise might have been triggered by an economic recovery that enabled households and businesses to demand more energy for their daily activities. For example, reports show that Ontario, Alberta, and Quebec consumed the most energy, approximately 74 percent of the energy demand in 2010 (“Energy”, 2016). Notably, these regions are hot spots for economic activities such as oil mining, which explains their high demand for energy consumption after economic recovery. In essence, the demand for energy during this recovery period was mainly marked by a significant rise in petroleum products, coal, and crude oil consumption.
Figure 1 shows energy demand consumption across different sectors in Canada in 2017
Source: “Provisional and territorial energy profiles- Canada” (2021, January 1). Canada Energy Regulator. https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/provincial-territorial-energy-profiles/provincial-territorial-energy-profiles-canada.html
Despite energy consumption improving since 2010, some scholars contend that this has not been the case for some energy forms such as oil. For example, Hansel et al. (2018) posit that despite being a worldwide oil producer, Canada consumed 2 percent of the global oil in 2017. This value is relatively low, considering that oil is a significant contributor to the country’s gross domestic product.
Figure 2 shows the supply and demand balance of light crude oil
Source: “Reference and high/low price case results” (2020, September 29). Canada Energy Regulator. https://www.cer-rec.gc.ca/en/data-analysis/canada-energy-future/2018/chapter-3-reference-high-low-price-case-results.html
Scholars attribute the declining trend of oil consumption in Canada to government initiatives. For example, Hansen et al. (2018) argue that the Canadian government’s policy initiatives, including biofuel blending mandates for gasoline and diesel, new vehicle emission standards, and carbon pricing systems, account for the downward pressure on oil demand in the country. This view is supported by Dessureault’s (2015) report, which outlines that the federal blend mandate requires a 5 percent renewable content in the Canadian gasoline pool and a 2 percent renewable content in the distillate pool, except for heating oil.
In essence, the federal blend mandate encourages biofuel content inclusion in gasoline and distillate pool to help protect the environment from excessive emission of greenhouse gas (GHG). Moreover, the Canadian government has been facilitating emission reduction of sulfur content in the environment by enforcing emission standards on passenger cars, heavy-duty vehicles, and light-duty trucks. Fundamentally, scholars attribute the decrease of oil energy consumption in Canada to the government’s policy mandates.
Analysis
As seen from the empirical data in government reports and scholarly work, energy consumption in Canada, notably oil consumption, has declined significantly over the past few years despite Canada being a large oil producer. This decline is likely to have a considerable implication on the country’s economy and the environment. It is worth noting that despite the reduced consumption of oil energy domestically, the global market for oil has been high since the 2009 economic crisis. Notably, a majority of firms in the United States, Europe, and Asia rely on the oil energy exported from Canada. Therefore, with the decline in local consumption, a large portion of Canada’s oil energy is likely to be consumed by the global market.
Moreover, the trend of oil energy consumption in Canada is likely to affect economic and environmental elements positively. As noted, Canada exports a portion of its fossil energy to the United States and Asia. Moreover, with technological advances and improved energy mining techniques, Canada is more likely to produce more renewable and non-renewable energy in the future. The increase in production and domestic consumption reduction is likely to increase the country’s balance of payments as more oil energy will be traded with other countries. Furthermore, Canada is likely to balance its economic activities and environment sustainability as the government work towards promoting the use of biofuel and reducing fossil fuel consumption.
Conclusion
As seen from the research analysis, energy consumption in Canada, notably oil energy, has seen a dramatic drop over the past few years. The research also shows that this decline could be due to government policies such as the federal blend mandate and motor vehicle emission standards. An analysis of the downward trend of energy consumption in Canada also suggests an increase in the absorption of this fuel in the global market. The consumption pattern also suggests an enhanced balance of payment in Canada as the country’s energy export to other countries increases, facilitated by the ongoing technological advancement.
While the above research and analysis provide considerable insight into the trend of energy consumption in Canada, it is subject to significant shortcomings that may affect the results. First, the study relies on secondary data obtained from prior studies, which may be subject to bias. Therefore, potential bias in previous research is likely to be replicated in the study’s outcomes. Moreover, some of the sources used in the study date more than three years old. Hence, the information contained in these sources may not reflect the current state of energy consumption in the country. Furthermore, the study mainly focuses on Canada’s oil energy consumption, which may not reflect the country’s overall state of consumption of other forms of energy.
To overcome the mentioned shortcomings and enhance the study’s quality, scholars should conduct further research on other forms of energy in the country. Moreover, more recent sources of data should be used in future research to enhance the validity of the findings. Lastly, diverse data types, including primary and secondary data, should be used in future studies to promote quality research outcomes.
References
“Energy” (2016). Statistics Canada. https://www150.statcan.gc.ca/n1/pub/11-402-x/2012000/chap/ener/ener-eng.htm
“Provisional and territorial energy profiles- Canada” (2021, January 1). Canada Energy Regulator. https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/provincial-territorial-energy-profiles/provincial-territorial-energy-profiles-canada.html
“Reference and high/low price case results” (2020, September 29). Canada Energy Regulator. https://www.cer-rec.gc.ca/en/data-analysis/canada-energy-future/2018/chapter-3-reference-high-low-price-case-results.html
“Renewable energy facts” (n.d.). Government of Canada. https://www.nrcan.gc.ca/science-data/data-analysis/energy-data-analysis/energy-facts/renewable-energy-facts/20069
Dessureault, D. (2015, August 8). Global agricultural information network. Gain Report. https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfilename?filename=Biofuels%20Annual_Ottawa_Canada_8-19-2015.pdf
Hansen, M., Doleman, C., & Bhargava, A. (2018). Oil supply and demand in Canada’s energy future: Current context and long-term trends. Second Quarter, 86(1), 42-46. https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwjqzJ6AudLuAhWTrHEKHTf2DqgQFjAJegQIAhAC&url=https%3A%2F%2Fwww.iaee.org%2Fen%2Fpublications%2Fnewsletterdl.aspx%3Fid%3D468&usg=AOvVaw0OgflzD364tLCnj1UQk_c-
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