Canada eyes G7 support to bypass Russia and become a global oil and gas superpower, leveraging resources, trade alliances, and geopolitical momentum
Although Canada and other G7 countries do not directly purchase oil and gas from Russia, they do so through a price limit policy that procures it from third countries.
Russia continues to be a significant energy supplier, and Europe’s economy depends on its production to function correctly. Russia is the world’s third-greatest oil producer, while Canada is fourth.
The United States and Saudi Arabia are the two largest producers, respectively, with production rates of approximately 22 million and 11 million barrels per day.
Is it possible for the G7 to surpass Russia and establish Canada as the third-largest oil and gas producer?
Without the assistance of the G7, it may be difficult for Canada to replace Russia as an oil and gas superpower. For Canada to surpass Russia, Europe must completely prohibit the importation of Russian energy and provide flexibility to its G7 counterparts. This can assist Canada in increasing its production capacity to satisfy the needs of Europe.
A professor from the University of Toronto, in his research piece, said:
“G7 members must fully ban imports of Russian energy – oil, coal, natural gas, uranium. Canada, with the world’s fifth-largest oil reserves and as a top-three uranium producer, can help fill the gap,”
Nevertheless, Russia’s production capacity is limited to 9 million barrels daily, presenting production challenges. Conversely, Canada, a member of the Group of Seven, produces five million barrels daily. Russia can also produce 10 million bpd without significant effort; however, this is not the case in Canada.
Canada faces climate change activists’ challenges and has notorious red tape in the energy industry. Russia, which is led by a dictatorial regime under Vladimir Putin, is not confronted with these obstacles and is permitted to expand its production.
The leadership of the G7 countries undergoes a transition every four to five years, which results in substantial policy modifications. Consequently, the likelihood of Canada surpassing Russia in the energy and gas sector is low.
