Snook’s Look: A natural opportunity?

While there’s no crystal ball for finding ways to increase revenue and secure long-term financial success, the looming energy crisis is certainly a space that’s prime for significant growth – one where equipment rental businesses across Canada may be able to find a major source of revenue in the coming years. 

The combination of growing urban populations with the need to power AI-driven energy hogs, and increased electrification of vehicles and industrial processes in a push towards net-zero emissions, means Canada is going to need a lot of investment in its energy infrastructure. According to the latest annual snapshot of Canada’s Major Projects Inventory (MPI) released this year by Natural Resources Canada (NRCan), investment is on the rise.

The MPI provides a look at the investment of key natural resource projects in Canada under construction or planned over the next 10 years.

According to NRCan’s report, there are 504 major projects that are either under construction or planned between 2024 and 2034. Compared to 2023, this represents an increase in overall project count as well as an overall increase in capital value.

Most of the capital value comes from energy projects, which make up $510 billion of the $632.6 billion, from a total of 340 energy projects. While there are three fewer energy projects compared to 2023, the total capital value of active energy projects is up by eight per cent. This investment growth is largely fuelled by nuclear projects and wind projects. Combined, the total value of these two energy types has more than doubled since the 2023 report, up to $78.6 billion.

Overall, most energy-related projects take place in Western Canada with B.C. (42.9 per cent) and Alberta (28.5 per cent) accounting for more than 70 per cent of projects. 

Liquified natural gas (LNG) projects are continuing to move ahead with LNG Canada Phase 1 expected to begin exporting in 2025, and the Woodfibre LNG and Cedar LNG expected to become operational by 2028.

Oil production projects make up significant investment as well, with the Mildred Lake and Blackod oil sands projects expected to increase Canada’s oil sands production. The Trans Mountain expansion pipeline project (TMX) increased overall capacity by 590,000 barrels per day, which is expected to help the country expand its crude oil market in Southeast Asia.

Of the 340 total energy projects totalling $510 billion in the report, oil and gas-related projects comprised 67 projects; electricity generation and transmission comprised 188 projects; and a combination of biomass, biofuels, geothermal projects and other clean technologies totalled 85 projects.

In addition to requiring significant investments in energy for our own population, Canada is also a resource-rich country that has many of the metals and minerals needed to help other countries achieve their energy goals. 

In the MPI report, 138 mining-related projects represented $117.1 billion in potential investment. More than 70 per cent of the value of these projects stemmed from metal mines, such as gold, copper, nickel and zinc, with a value of $82.8 billion across 98 projects.

Most of the remaining value came from 21 non-metal mining projects, such as potash and diamonds, and 14 coal mining projects. Additional mining-related projects totalled $1.7 billion.

Needless to say, the demand for increased energy-related infrastructure and natural resources is on a steady rise, with most industry experts expecting to see long-term growth in Canada’s energy and mining sectors. Hopefully, this growth will help fuel increased opportunities for Canada’s equipment rental sector.

Does your company have Good News to share? Email Canadian Rental Service at mrebelo@annexbusinessmedia.com.

Portrait of Andrew Snook.

Andrew Snook is an independent business writer and former editor of Rock To Road and Crane & Hoist magazines.