When it comes to speaking about the future of energy, few Canadians have participatory insights from deep experience like James S. Kinnear. After establishing Pengrowth Management Limited in 1982 which initiated investments in oil and gas properties on behalf of pension fund clients, he launched Pengrowth Gas Income Fund which became Pengrowth Energy Trust– a pioneer in the Canadian energy trust sector, which grew from an initial public offering of $12.5 million into a $4.12 billion enterprise. He led one of North America’s largest and most successful energy royalty trusts for over 20 years and upon retirement from Pengrowth, Kinnear, along with other investors, established Caledonian Royalty Corporation.
So it comes as no surprise that Kinnear continues his leadership in the energy sector with his latest project, the Future of Energy Global Summit coming up Sept 21-23 in Banff AB. This is the second year for the summit and Kinnear has steered the focus of discussions to diversified energies – not just oil and gas.
He describes the current energy landscape as “an interesting time in the business”. It’s well known that the current world population of 8.2 billion in 2024 is projected to increase to approximately 10 billion by 2050 with an inevitable increase in demand for energy.
“ What’s happening in the energy business globally is that the need for energy intensity is increasing,” Kinnear says. “What I mean by that is per capita consumption is rising. So you’ve got both the population growth of the world plus per capita consumption over time. I ask the question -Does that mean we’ll be using less energy?- I don’t think so.”
Kinnear cites the substantial new requirements for electric power in many countries and the search for other energy sources as factors increasing the need for energy intensity and reliability, especially within certain areas of the world that don’t have enough energy. The rise of energy demand in developing nations has long been the focus of NJ Ayuk, Executive Chair at the African Energy Chamber and author of the book “A Just Transition: Making Energy Poverty History with an Energy Mix” who makes the case for the need for energy intensity from multiple energies including oil and gas in a recent LinkedIn post saying…
“I believe that a rushed transition to renewables and a blanket ban on African oil and gas will force hundreds of businesses into bankruptcy, will plunge billions of people into irrevocable poverty, and will destabilize more governments. We need the time to capitalize on our oil and gas resources while we build opportunities in renewables. We want our voices to be heard, and our opinions to be counted. Otherwise… the costs are simply too high.”
Kinnear recognizes that globally, people are striving to obtain a higher standard of living and energy fosters that growth as well as the growth in the respective economies.
As for the energy landscape in Canada?
“In Canada, we’re rather blessed because we have significant quantities of energy,” Kinnear says. “We certainly are in terms of some of our bitumen or oil production and natural gas production. In certain parts of the country, we’re a net exporter of, for example, hydropower. We’re in a very fortunate position globally with respect to the energy business. As an energy exporter, that puts us in a very enviable position compared to a lot of countries around the world. We have our issues from time to time, but generally, we’re in a very positive position from an energy point of view on a global scale.”
Kinnear backs his comments up with the fact that Canadian oilsands reserves are the third largest proven oil reserve in the world and Canada has ample natural gas as well.
(Author’s Note – Unfortunately Canada also has an outdated and overly restrictive regulatory regime that endlessly delays project approvals and is not blessed with a federal leader who understands that Canada, like the rest of the world, will experience an increasing need for energy intensity and reliability. Just last week on Sept 10th, RBC CEO Dave McKay, speaking at the Canadian Club in Toronto said Canada’s economic policy is on “the wrong path”. He mentioned that he was recently meeting with a group of Canadian CEOs when a “very senior” leader said “You’re not serious people”.)
Still, Kinnear sees huge advantages in Western Canada for an industry that is very dependent on policy due to very effective provincial leadership. His awareness of industry challenges shaped the speakers that were invited to this year’s Future of Energy Global Summit for what he calls “co-operations, collaborations and convergence”.
The first day features a talk on A.I. and the Future of Energy, a topic which is top of mind for all sectors of the energy industry closely followed by a session on Cyber Security, a keynote with Premier Danielle Smith and a panel discussion on Energy Finance with speakers from MNP, the AIOC and Economic Developers Alberta.
“Energy finance is such a huge topic and it is kind of near to our hearts,” Kinnear says. “How do we finance energy projects -what are the capital requirements going forward? This business is going be around for many, many years to come. The bottom line is that energy sectors are very capital-intensive. They need huge amounts of capital – I’ve seen numbers in the trillions of dollars. We’re in a whole new era and this is a very important topic for discussion.”
Ultimately, Kinnear intends the conference to dispel misconceptions about the energy industry and has included panel discussions on Solar, CCS, and SMRs because the future of energy is certain to be diversified.
Maureen McCall is an energy professional who writes on issues affecting the energy industry.