Setting the Pace: The economic case for managing the decline of oil and gas production in Canada

This report by the International Institute for Sustainable Development (IISD) argues that the Canadian oil and gas sector is ill-prepared for an inevitable decline in global demand. It suggests that the federal government must take a proactive role in managing this phase-down to protect workers and communities and diversify the economy, rather than continuing with business-as-usual production expansion.

• The Canadian oil and gas sector is expected to decline because global demand is shifting away from fossil fuels, meaning the industry is not currently equipped to handle these drops in demand.
• The report recommends that the federal government implement four specific strategies: strengthening climate policies and the Sustainable Jobs Action Plan based on credible sectoral analysis; supporting economic diversification plans for Indigenous and subnational governments; aligning fiscal policy by removing fossil fuel subsidies and public finance; and using federal tools to end production expansion and prepare for a phase-down.
• Recent volatility and high prices resulting from the pandemic and Russia's invasion of Ukraine created windfall profits that have led to renewed interest in expanding Canadian oil and gas infrastructure, despite an accelerating global shift away from these fuels.
• The report identifies that carbon capture and storage is not a viable net-zero solution for the sector and that Canadian Liquefied Natural Gas (LNG) infrastructure would be too late to meet the short-term energy security needs of the European Union.

APA

Norton,, N. D. C. C. T. C. C. (2023). Setting the Pace: The economic case for managing the decline of oil and gas production in Canada. International Institute for Sustainable Development. https://www.iisd.org/publications/report/setting-the-pace-canada-oil-gas-decline

Chicago

Norton,, Nichole Dusyk,Aaron Cosbey,Angela Carter,Lasse Toft Christensen,Laura Cameron,Sarah. Setting the Pace: The economic case for managing the decline of oil and gas production in Canada. International Institute for Sustainable Development, 2023. https://www.iisd.org/publications/report/setting-the-pace-canada-oil-gas-decline.

Wikipedia

{{cite report |last1=Norton, |first1=Nichole Dusyk,Aaron Cosbey,Angela Carter,Lasse Toft Christensen,Laura Cameron,Sarah |title=Setting the Pace: The economic case for managing the decline of oil and gas production in Canada |publisher=International Institute for Sustainable Development |date=27 June 2023 |url=https://www.iisd.org/publications/report/setting-the-pace-canada-oil-gas-decline |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{norton2023setting, author = {Norton,, Nichole Dusyk,Aaron Cosbey,Angela Carter,Lasse Toft Christensen,Laura Cameron,Sarah}, title = {{Setting the Pace: The economic case for managing the decline of oil and gas production in Canada}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = jun, url = {https://www.iisd.org/publications/report/setting-the-pace-canada-oil-gas-decline}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }