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14% of Canadians struggling to heat, cool their homes: Statistics Canada

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7 minute read

From LifeSiteNews

By Clare Marie Merkowsky

‘In 2023, 14 percent of Canadian households reported that they kept their dwelling at an unsafe or uncomfortable temperature for at least 1 month in the past 12 months because of unaffordable heating or cooling costs,’ StatsCan reported.

Statistics Canada has found that as energy costs continue to rise, some Canadians are unable to afford to properly heat or cool their homes. 

On October 30, Statistics Canada reported that many Canadians are keeping their homes at “unsafe or uncomfortable” temperatures as they are unable to pay energy bills amid Prime Minister Justin Trudeau’s ongoing energy regulations and taxes.

“In the face of rising energy prices, not all Canadian households are able to adequately heat and cool their dwellings, resulting in possible increased risk of climate-related morbidity and even death,” StatsCan wrote.   

“In 2023, 14 percent of Canadian households reported that they kept their dwelling at an unsafe or uncomfortable temperature for at least 1 month in the past 12 months because of unaffordable heating or cooling costs,” the report continued.  

The research found that over a quarter of households (26 percent) in 2023 did not use air conditioning. Similarly, 26 percent of Canadians do not have air conditioning or cooling equipment in their homes.   

36 percent of those who went without air conditioning lived in the lowest income bracket, while only 15 percent were in the highest income bracket.  

Furthermore, Canadians living in apartments are least likely to have air conditioning. Numbers revealed 38 percent of Canadians in low-rise apartments and 33 percent of Canadians in high-rise apartment do not use air conditioning.  

According to StatsCan, a lack of air condition can “lead to dangerous living conditions and has been linked to an increased risk of heat-related morbidity and mortality.” 

The report found that 2 percent of households were so affected by their home being too hot or too cold that a member of their household required medical care.  

As energy bills continue to rise, one in seven Canadians have been forced to go without necessities, such as food and medicine, to pay their energy bills. Additionally, about 8 percent revealed that they have had to go without necessities for at least three months.  

Research found that 27 percent of those who have had to sacrifice basic necessities to pay energy bills are single-parent families. Single parents are 1.5 times more likely to forfeit necessities than couples with children and 3 times more likely than couples without children.  

Additionally, some Canadians are unable to make their payments at all. In the past 12 months, 3 percent of households said their energy was disconnected or shut off, while one in ten reported that they could not pay their bill on time or at all. 

The StatsCan findings come amid ongoing debate over Trudeau’s carbon tax, which extends to many forms of home heating.  

Trudeau recently determined to suspend the carbon tax for home heating oil, a decision which has been criticized for benefiting Atlantic provinces, a historically Liberal stronghold, while leaving western and Conservative provinces literally out in the cold.    

As a result, Saskatchewan Premier Scott Moe said his province will stop collecting a federal carbon tax on natural gas used to heat homes come January 1, 2024, unless it gets a similar tax break as the Atlantic Canadian provinces.   

However, Trudeau, along with other Liberal officials, have announced that no more concessions are to be made.  

“There will absolutely not be any other carve-outs or suspensions of the price on pollution,” Trudeau told reporters. “This is designed to phase out home heating oil, the way we made a decision to phase out coal… This is specifically about ending the use of home heating oil.”    

Trudeau’s statement was supported by both Natural Resources Minister Jonathan Wilkinson and Environment Minister Steven Guilbeault.    

Wilkinson dismissed Moe’s demand of further tax relief, saying, “There will be no more carve-outs coming.”    

“We expect him to comply with the laws of the land,” he added. “It is a requirement that they collect that or that it be collected in some way.”   

Conservative Party of Canada (CPC) leader Pierre Poilievre condemned the rising energy costs citing the carbon tax as a driving factor and making reference to the StatsCan report.   

“Already, 14 percent of Canadians are living with unsafe temperatures in their homes. One in 10 have missed a heating bill in the last 12 months. Will he, before people go cold and hungry, axe the tax so that people can keep the heat on?” he asked in Parliament.  

Trudeau’s decision comes as Atlantic Liberals are beginning to vote alongside Conservatives to end the carbon tax. The Atlantic provinces have voted primarily Liberal since 2015, but recent polls reveal that many Canadians living there plan to vote Conservative.    

Trudeau’s carbon tax, framed as a way to reduce carbon emissions, has cost Canadians hundreds more annually despite rebates.     

The Office of the Parliamentary Budget Officer calculated the total carbon tax costs for fuel in 2023 minus the government rebates. The steepest increase is for Albertans, who will pay an average of $710 extra per household. Following Alberta is Ontario with a $478 increase.  

Prince Edward Island households will pay an extra $465, Nova Scotia $431, Saskatchewan $410, Manitoba $386, and Newfoundland and Labrador $347.   

The increased costs are only expected to rise, as a recent report revealed that a carbon tax of more than $350 per tonne is needed to reach Trudeau’s net-zero goals by 2050.     

Currently, Canadians living in provinces under the federal carbon pricing scheme pay $65 per tonne, but the Trudeau government has a goal of $170 per tonne by 2030.

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Alberta

Oil and gas in the global economy through 2050

Published on

From the Canadian Energy Centre

By Ven Venkatachalam

The world will continue to rely on oil and gas for decades to come, according to the International Energy Agency

Recent global conflicts, which have been partly responsible for a global spike in energy prices, have cast their shadow on energy markets around the world. Added to this uncertainty is the ongoing debate among policymakers and public institutions in various jurisdictions about the role of traditional forms of energy in the global economy.

One widely quoted study influencing the debate is the International Energy Agency’s (IEA) World Energy Outlook, the most recent edition of which, World Energy Outlook 2023 (or WEO 2023), was released recently (IEA 2023).

In this CEC Fact Sheet, we examine projections for oil and natural gas production, demand, and investment drawn from the World Energy Outlook 2023 Extended Dataset, using the IEA’s modelled scenario STEPS, or the Stated Policies Scenario. The Extended Dataset provides more detailed data at the global, regional, and country level than that found in the main report.

The IEA’s World Energy Outlook and the various scenarios

Every year the IEA releases its annual energy outlook. The report looks at recent energy supply and demand, and projects the investment outlook for oil and gas over the next three decades. The World Energy Outlook makes use of a scenario approach to examine future energy trends. WEO 2023 models three scenarios: the Net Zero Emissions by 2050 Scenario (NZE), the Announced Pledges Scenario (APS), and the Stated Policies Scenario (STEPS).

STEPS appears to be the most plausible scenario because it is based on the world’s current trajectory, rather than the other scenarios set out in the WEO 2023, including the APS and the NZE. According to the IEA:

The Stated Policies Scenario is based on current policy settings and also considers the implications of industrial policies that support clean energy supply chains as well as measures related to energy and climate. (2023, p. 79; emphasis by author)

and

STEPS looks in detail at what [governments] are actually doing to reach their targets and objectives across the energy economy. Outcomes in the STEPS reflect a detailed sector-by-sector review of the policies and measures that are actually in place or that have been announced; aspirational energy or climate targets are not automatically assumed to be met. (2023, p. 92)

Key results

The key results of STEPS, drawn from the IEA’s Extended Dataset, indicate that the oil and gas industry is not going into decline over the next decade—neither worldwide generally, nor in Canada specifically. In fact, the demand for oil and gas in emerging and developing economies under STEPS will remain robust through 2050.

Oil and natural gas production projections under STEPS

World oil production is projected to increase from 94.8 million barrels per day (mb/d) in 2022 to 97.2 mb/d in 2035, before falling slightly to 94.5 mb/d in 2050 (see Figure 1).

Source: IEA (2023b)

Canadian overall crude oil production is projected to increase from 5.8 mb/d in 2022 to 6.5 mb/d in 2035, before falling to 5.6 mb/d in 2050 (see Figure 2).

Source: IEA (2023b)

Canadian oil sands production is expected to increase from 3.6 mb/d in 2022 to 3.8 mb/d in 2035, and maintain the same production level till 2050 (see Figure 3).

Source: IEA (2023b)

World natural gas production is anticipated to increase from 4,138 billion cubic metres (bcm) in 2022 to 4,173 bcm in 2050 (see Figure 4).

Source: IEA (2023b)

Canadian natural gas production is projected to decrease from 204 bcm in 2022 to 194 bcm in 2050 (see Figure 5).

Source: IEA (2023b)

Oil demand under STEPS

World demand for oil is projected to increase from 96.5 mb/d in 2022 to 97.4 mb/d by 2050 (see Tables 1A and 1B). Demand in Africa for oil is expected to increase from 4.0 mb/d in 2022 to 7.7 mb/d in 2050. Demand for oil in the Asia-Pacific is projected to increase from 32.9 mb/d in 2022 to 35.1 mb/d in 2050. Demand for oil from emerging and developing economies is anticipated to increase from 47.9 mb/d in 2022 to 59.3 mb/d in 2050.

Source: IEA (2023b)

 

Source: IEA (2023b)

Natural gas demand under STEPS

World demand for natural gas is expected to increase from 4,159 billion cubic metres (bcm) in 2022 to 4,179 bcm in 2050 (see Figures 6 and 7). Demand in Africa for natural gas is projected to increase from 170 bcm in 2020 to 277 bcm in 2050. Demand in the Asia-Pacific for natural gas is anticipated to increase from 900 bcm in 2020 to 1,119 bcm in 2050.

Source: IEA (2023b)

 

Source: IEA (2023b)

Cumulative oil and gas investment expected to be over $21 trillion

Taking into account projected global demand, between 2023 and 2050 the cumulative global oil and gas investment (upstream, midstream, and downstream) under STEPS is expected to reach nearly U.S.$21.1 trillion (in $2022). Global oil investment alone is expected to be over U.S.$13.1 trillion and natural gas investment is predicted to be over $8.0 trillion (see Figure 8).

Between 2023 and 2050, total oil and gas investment in North America (Canada, the U.S., and Mexico) is expected to be nearly U.S.$5.6 trillion, split between oil at over $3.8 trillion and gas at nearly $1.8 trillion (see Figure 8). Oil and gas investment in the Asia Pacific, over the same period, is estimated at nearly $3.3 trillion, split between oil at over $1.4 trillion and gas at over $1.9 trillion.

Source: IEA (2023b)

Conclusion

The sector-by-sector measures that governments worldwide have put in place and the specific policy initiatives that support clean energy policy, i.e., the Stated Policies Scenario (STEPS), both show oil and gas continuing to play a major role in the global economy through 2050. Key data points on production and demand drawn from the IEA’s WEO 2023 Extended Dataset confirm this trend.

Positioning Canada as a secure and reliable oil and gas supplier can and must be part of the medium- to long-term solution to meeting the oil and gas demands of the U.S., Europe, Asia and other regions as part of a concerted move supporting energy security.

The need for stable energy, which is something that oil and natural gas provide, is critical to a global economy whose population is set to grow by another 2 billion people by 2050. Along with the increasing population comes rising incomes, and with them comes a heightened demand for oil and natural gas, particularly in many emerging and developing economies in Africa, the Asia-Pacific, and Latin America, where countries are seeing urbanization and industrialization grow rapidly.


References (as of February 11, 2024)

International Energy Agency (IEA), 2023(a), World Energy Outlook 2023 <http://tinyurl.com/4nv9xyfj>; International Energy Agency (IEA), 2023(b), World Energy Outlook 2023 Extended Dataset <http://tinyurl.com/3222553b>.

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