Thank you, Mr. Chair, for the opportunity to address the committee today.
The world is changing so quickly that it's hard to keep track. Innovations in drilling and fracking have taken the world from a potential oil and gas shortage a generation ago to more oil and gas than we can use. We have gone from the federal government subsidizing the oil sands a little over 20 years ago to incentivizing the reduction of oil consumption and to limit the expansion of the oil sands.
Because of the impacts of climate change, the new world goal is net-zero carbon emissions by 2050, but we also need to ensure that energy is still affordable and available and that we keep Canadians working through this energy transition. The only way these twin goals can be achieved is the responsible production of Canadian oil and natural gas, along with technological advances like carbon capture utilization and storage, hydrogen production, geothermal and other technologies that lower Canada's emissions while keeping energy affordable and workers on the job.
In other words, if this is really a transition, we say, “Bring it on.” We've been evolving, changing and transitioning for over 70 years. Just set some fair rules, be consistent, put us on a level playing field and we'll do the rest. We also have children and grandchildren, and we want to make the world and their world a better place for them as well.
As Canadians bundle up and prepare for the coming winter months, hardworking Canadian rig crews keep our homes warm and make that hot chocolate possible this holiday season. Canadians are proud of their natural resource industries and support responsible development. With our world-class standards, Canada has an opportunity to play a significant role in shaping the world's energy future. It's our people, equipment, technology and processes that will pave the way to a cleaner, lower-carbon energy future.
Although renewables such as wind and solar will increase significantly over time, they will not replace fossil fuels in many energy-intensive applications. Therefore, as we move toward cleaner solutions, natural gas will continue to grow and eventually dominate the world's energy supply. Canada's abundant natural gas reserves, combined with our technology and geographic location to develop and deliver it at the world's lowest carbon profile, are a huge competitive advantage for our country.
Hydrogen and geothermal will also play an important role in our energy future. We have seen several drilling rigs complete geothermal wells in Saskatchewan and Alberta to produce clean and renewable electricity. The possibilities for these new industries are encouraging and exciting for the entire country. It's our people and businesses within the oil and gas services industry that will help move these new energy opportunities forward.
However, I'm afraid many Canadian drilling and service contractors are struggling to survive right now, and without the Canadian energy services sector, Canada's ambitious carbon reduction targets cannot and will not be achieved.
After a promising start, 2020 activity levels came to a crashing halt at the end of Q1, along with the global economy, due to COVID-19. The industry faced historic lows in drilling activity, with as few as six drilling rigs working in June in all of Canada. Not only was 2020 the worst year on record, it was also an extension of the prolonged downturn in Canada's oil and gas industry. This should alarm policy-makers in our country.
If we sincerely want to address climate change and embrace new energy sources such as hydrogen, geothermal and carbon capture utilization and storage, if Canadian drilling and service contractors are not available, Canada's ambitious and realistic climate objectives are not feasible.
Post-COVID, an opportunity for Canadian energy will present itself once again. We have the world's premier energy brand, the most ethically sourced, responsibly produced, cleanest hydrocarbon-based energy available in a world that will need our products for decades to come.
Thank you for the committee's time. I look forward to answering questions.