Canada’s enormous oil sands or bitumen reserve is its major fuel source. This thick and sticky substance, also known as dirty oil, is the dismay of climate change proponents because it emits more greenhouse gases than conventional gasoline and heating oils (Van Loon, 2017).

Crude processing in Canada is slowing down despite its seemingly limitless bitumen resource. The country’s climate policies and protests for new pipelines have turned away many international investors, The Economist article reports.

US crude oil production rose by 94% from 2011 to 2018. Giant oil companies Chevron and Exxon Mobil are pumping capital into shale oil in Texas and New Mexico.

But returns on fracking are meagre, as wells quickly dry out, which led them to drill new wells. With low gas prices, they are also struggling.

Some firms have decided to slow down growth and lower capital spending. Bob Brackett of Bernstein, a research firm, says this could also reflect a geological and technical limit as productivity per square foot of shale basins is declining. He says it will continue to peak until 2022 and then plateau.

The plummeting oil prices and depletion of oil reserves could also make firms struggle, the article says.

Depletion of the oil wells in America and Canada’s commitment to their climate policies despite abundant bitumen resources could push these giant economies to invest more in renewable sources of energy.

In Texas, 300-foot wind turbines are beginning to be erected on cotton fields. There are 120 of them now, while 120 more are being added, according to the Economist article. Thanks to a Danish energy firm that started this project two years ago.

This is ironic in a state that ushered the world into the oil age. Each wind turbine generates enough power for 1000 homes. Wind energy now supplies 20% of Texas’ electricity demand. Investment in wind turbines has also created an increasing demand for ‘wind turbine technician jobs’.

The good news does not stop there. Solar energy and battery systems are also rising, creating more jobs for solar panel installers.

According to the Solar Energy Industries Association, solar and wind combined make up 55% of the new electricity generating capacity each year. This boom in renewable energy could see a decline in fossil-fuel generation, says the article.

What Has Led to this Renewable Energy Boom?

According to the Economist article, here’s a summary of the reasons for this renewable energy boom.

Wind energy has benefitted from a production tax credit for decades and a solar tax credit.
A new transmission line network by the state made it possible for wind farms to supply power to the grind from remote, windy parts of the state, and the same lines are boosting solar energy.
The cost of wind turbines and solar panels has greatly fallen.
Royalties paid for the use of land by landowners and local governments
Large firms are buying green electricity to reduce their emissions
Large electricity companies are increasingly withdrawing from coal dependency to renewables.

Climate change is a continuous threat that will bring more disasters and extreme events if economies continue to rely on fossil fuels to meet their energy demands. Oil shale and tar sands are environmentally destructive, water-intensive, and energy-intensive. Continuous extraction of oil from both oil shale and tar sands will destroy any hope of reducing carbon emissions.

It is encouraging to know that Canada is slowing down oil extractions and investments due to climate policies.

By investing in and producing renewable energy and slowly abandoning coal and fossil fuels, the USA is sending positive signals to the world that renewable energy is capable of meeting great demands.

In general, renewable energy is a no-brainer, a win-win solution for the economy—creating new jobs—and the fight against climate change. The shift to renewables, hopefully, will end the fossil fuel era and usher in a clean and renewable energy age.