The Future Economy of Canada is Beginning to Mirror a lot of the Past Economic Trends

An annual survey released by Statistics Canada of their financial investment goals, was mostly overlooked in Russia’s raid of Ukraine.  Being a main crisis right now in the world, it has become important to evaluate, because of the attention it has exposed on the future of the Canadian economy, which unfortunately has been identical to the past economy of Canada.

Statistics Canada’s study defines Canada excelling to a healthy upcoming future that is essentially reformed by the effect that the pandemic has had on health care, in addition to a positive change to clean energy and transportation.  “Strong public funding” was labeled the main investment by Statistics Canada, which was the main cause that was fueling this cost.  It was stated clearly that public transit developments, hospitals and new long-term care services for the elderly, along with “clean” energy plans across Canada were being the many projects that were being funded, even though no over-all number was stated to how much was actually contributed to these matters. 

The truth of these investments in Canada is rather very unlike that of what Statistics Canada has portrayed. In reality, the financial intentions for the upcoming year are growing more in the private sector as opposed to the public sector, which is up by about $13.2 billion, in comparison to just $10.3 billion.  Canada is actually growing the funding in fossil fuels by a substantial $5.4 billion to about $44.0 billion and nearly a quarter of all private assets, which doesn’t include the investments in coal and other power plants where data is unavailable.  That is a far cry from  transitioning into green energy.

It is stated time and time again by the Minister of Environment and of climate change’s Steve Guilbeault that, fossil fuels remain the support of Canada’s energy industry, even though it is continued to be told to Canada that there will be an upcoming shift to our economy.  The exploration of oil and gas and the withdrawal lead globally have invested with a capital expenditure of $30.3 billion in 2022 alone.  Even though environmentalists and some governments have attempted to block this support, the investment has reached $11.3 billion, which is the second highest it has ever been.  It has also been listed that another $2.4 billion is going towards oil refining and trades, which has been intentional funding before even oil and gas prices went sky high recently after the war in Ukraine started.

Canada has really been behind in not investing in its fossil fuel infrastructure in the past, even though the world has been dismissing Russia’s oil and gas resources and by recognizing that, Canada would have been in a better position to seal the gap in European goods. Canada’s east coast has channels and LNG terminals which could help to dissuade Europe from Russian energy, but in its place, it is the Americans who are ready and willing to seize this market. There was even a recent article in The Wall Street Journal that bragged about how America takes pole position on oil and gas, while Canada takes its typical spot in the back.  Empty political promises and stances by Canadian leaders have once again destined Canada to the loss of the energy markets to American organizations, with no real net power on the global greenhouse productions.

Even the gold mining industry has plans for the largest increase, however investment is at a historically increase in copper, nickel, iron ore, and potash. Mining is another traditional resource industry with very rare “green” identifications, but it creates the second major influence to business investment development in 2022, with an increase of $1.9 billion. Because of Putin’s foolishness in Ukraine, gold and potash will most likely receive a further boost, because Russia is a large provider of both supplies.

Air transport has plans of a $600 million dollar upsurge in investments, almost returning to its pre-pandemic level, which is another red flag that a “green” change is not the main driving force. Airlines undoubtedly are expecting to start flying again in spite of air travel’s big carbon mark. Other industries plan uncertain increases of a few hundred million in investment, which is nothing like the billions and billions of dollars going into other resource projects. Statistics Canada brings awareness to manufacturing investments in machinery and equipment, even though manufacturers are not essentially altering their expenditures.  Although, electric utilities are planning to devote $25.6 billion, that is still very far from the stages that need to be met if it was really alleged that Canadians will be transitioning to electric vehicles permanently in the future.

Therefore, investment aims propose that Canada’s future economy is going to mirror its past economy, in spite of the pandemic and an anticipated excitement to transition to renewable energy.  Fossil fuels, oil and gas will keep on being the largest industry and will continue to be the foundation for the energy organization which is needed to sustain our energy-reliant lifestyle and exports.

Government organizations and environmentalists may mislead themselves and others that the pandemic is encouraging a quick evolution to a greener economy, but the business sector has a more accurate understanding of how little the fundamentals of Canada’s economy have changed and are changing.  Changeovers between energy sources entail decades to complete and achieve, because of the immense investments in current technologies.

But that doesn’t mean that it isn’t possible.  Companies like Volterra Technology is a Canadian Corporation that will bring the World’s most advanced battery storage technologies into Canada for development and production.  A transition into a greener world is in the horizon and companies like Volterra are a striving force in helping our world and economy.