Despite the rise of “Buy American” policy, the CEO of Canada’s biggest company says there are many opportunities to improve Canada’s sluggish economy by supporting the United States.

Near the top of the list for RBC boss Dave McKay is energy – and not just the multi-billion-dollar trade between Canada and the U.S. The value of Canada’s resources to the U.S. stretches far beyond North America’s borders.

“Canada has to get in sync and create value for our largest trading partner,” McKay told a Canadian Club of Toronto gathering on Sept. 10.

Security, he said, is one of America’s biggest concerns.

“Energy security is a big part of overall security…As we think about these power structures changing, the U.S. needs us to supply Asia with energy. That allows the United States to feed energy to Europe.”

He said that for Canada, that includes oil exports through the new Trans Mountain pipeline expansion and natural gas on LNG carriers.

“Particularly Asia wants our LNG. They need it. It’s cleaner than what they’re using today, the amount of coal being burned…We can’t keep second-guessing ourselves,” McKay said.

Asia’s demand for oil and gas is projected to rise substantially over the coming decades, according to the latest outlook from the U.S. Energy Information Administration (EIA).

The EIA projects that the region’s natural gas use will increase by 55 per cent between 2022 and 2050, while oil demand will increase by 44 per cent.

With completion of the Trans Mountain expansion in May, Canada’s first major oil exports to Asia are now underway. Customers for the 590,000 barrels per day of new export capacity have already come from China, India, Japan and South Korea.

Canada’s long-awaited first LNG exports are also on the horizon, with first shipments from the LNG Canada terminal that could come earlier than expected, before year-end.

According to the Canada Energy Regulator, LNG exports from the coast of British Columbia could rise from virtually nothing today to about six billion cubic feet per day by 2029. That’s nearly as much as natural gas as B.C. currently produces, CER data shows.

But the federal government’s proposed oil and gas emissions cap could threaten this future by reducing production.

Analysis by Deloitte found that meeting the cap obligation in 2030 would result in the loss of about 625,000 barrels of oil per day and 2.2 billion cubic feet of natural gas per day.

This could wipe out significant sales to customers in the United States and Asia, without reducing demand or consumption.

McKay said the “massive complexity” around climate rules around the world and the lack of a cohesive path forward is slowing progress to reduce emissions.

Canada has opportunities to advance, from conventional energy to critical minerals and cleantech innovation, he said.

“We have to continue to leverage our resources…We can lead in clean tech, but in the meantime, there is an opportunity to get more carbon out of the economy sooner,” he said.

“We are in a race. Our planet is heating, and therefore we have to accept there can be transitionary energy sources.”

The unaltered reproduction of this content is free of charge with attribution to the Canadian Energy Centre.