Agenda
Reserves
Most of Canada’s established oil reserves, more than 95 per cent, are in the form of oil sands and only 5.4 billion barrels are conventional oil reserves. The oil sands are a mixture of crude bitumen (a semi-solid form of crude oil), silica sand, clay minerals, and water. In Canada, the oil sands reserves are found primarily in Alberta. The ultimate potential of Alberta oil sands is estimated at 315 billion barrels.
Based on the World Energy Council’s Survey of Energy Resources 2007, Canada has 8.7 billion tonnes, BT, of proven coal resources in place, of which 6.6 BT have been identified as recoverable reserves. At the present production rate, Canada’s recoverable coal reserves would offer approximately 94 years of production.
Climate Change
The Government of Canada is committed to reduce Canada's total greenhouse gas emissions by 17 per cent from 2005 levels by 2020, a target that is inscribed in the Copenhagen Accord and aligned with the United States. Under this commitment Canada:
a. Implements Renewable Fuel Regulations, requiring an average renewable fuel content of five per cent in gasoline that came into effect on December 15, 2010
b. Introduces new regulations on coal-fired electricity generation that will have a significant impact on reducing emissions from the electricity sector
c. Continues to advance the Clean Energy Dialogue with the United States and collaborate on clean energy research and development
d. Invests in green infrastructure, energy efficiency, clean energy technologies and the production of cleaner energy and cleaner fuels
Status
Growth
The global recession started to affect industrial demand for natural gas and petroleum products towards the end of 2008, but Canadian industrial demand proved to be resilient and only fell by 1%. Overall, demand for refined products in Canada slowed down in 2008 along with the worldwide economic slowdown, and continued to decline in 2009. In fact, demand in 2009 was 6% lower than in 2008 at 96.5 billion litres, the lowest since 2002.
Targets
A survey of Canadian crude oil production forecasts show considerable variability, particularly in the long-run. Overall, Canada’s oil sands production could more than triple by 2030. Canada has a large and growing net surplus of crude oil. The domestic market for oil sands production could grow with rising production. Surplus Canadian crude oil production will help meet the demands for oil in the US market, and could possibly be exported to a new market in Asia.
Institutional Structure
National Energy Board
The National Energy Board (NEB) is an independent federal agency established in 1959 by the Parliament of Canada to regulate international and interprovincial aspects of the oil, gas and electric utility industries; therefore, interprovincial and international oil and gas pipelines are regulated by the National Energy Board. Additions to existing pipeline systems under federal jurisdiction also require the NEB’s approval before they may be built.
Oil and Gas Policy and Regulatory Affairs Division
The Oil and Gas Division provides expert technical, regulatory, policy and economic information and advice on crude oil, natural gas and petroleum product markets, pipelines, and regulatory issues to the Minister of NRCan and the federal government. In addition, the Oil and Gas Division advises the Minister of NRCan on matters related to statutory obligations under the NEB Act and Transportation Safety Board Act. The Division also includes the Pipeline Arbitration Secretariat.
Canadian Nuclear Safety Commission
The CNSC regulates nuclear power plants, nuclear research facilities and the numerous other uses of nuclear material such as uranium mines and mills for fuel and radioisotopes for pharmaceuticals. The CNSC is almost exclusively concerned with safety standards in the nuclear industry and rarely addresses market issues or environmental concerns beyond public safety needs
Canada-Nova Scotia Offshore Petroleum Board
The Board is the independent joint agency of the Governments of Canada and Nova Scotia responsible for the regulation of petroleum activities in the Nova Scotia Offshore Area. It was established in 1990 pursuant to the Canada-Nova Scotia Offshore Petroleum Accord Implementation Acts (Accord Acts).
Canada-Newfoundland and Labrador Offshore Petroleum Board
The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) was created in 1986 through the Atlantic Accord for the purposes of regulating the oil and gas industry offshore Newfoundland and Labrador. The Board operates at arms-length from governments and reports to both the Federal and Provincial Ministers of Natural Resources. Decisions of the Board, referred to in legislation as ‘Fundamental Decisions’, are referred to government for approval or rejection.
Budget
Current
At the beginning of the year Canada’s largest oil and gas companies were planning to spend $36.9 billion excluding acquisitions this year, a 15% increase on the $32 billion spent in 2010. Some companies have revised this initial guidance and they are now planning to spend $37.4 billion or 17% more than last year.
History
Over the last decade, there has been a rapid increase in investment in Canada’s upstream petroleum industry. Investment has tripled from CAD 16.2 billion in 1998 to about CAD 46.8 billion in 2007 and an estimated CAD 47.7 billion in 2008. Investment growth has been strongest in the oil-sands industry, which has increased twelvefold over the last decade, from CAD 1.5 billion in 1998 to CAD 18.1 billion in 2007. Recent falls in oil prices and the global economic crisis have had a significant impact on investment conditions and resulted in the postponement of a number of oil-sands projects.
Key Policies
XL Pipeline
The Keystone XL project is an expansion of Calgary-based TransCanada Corp.'s existing Keystone pipeline system, and will carry up to 830,000 barrels of crude per day from northern Alberta to refineries in Oklahoma and the Gulf Coast in Texas.
The Keystone XL pipeline's purpose is to export essentially unprocessed bitumen, in the largest possible quantities, out of Canada and to the petrochemical complex in Texas where it will be processed into finished fuel, plastics and chemicals in a myriad of forms for sale around the world, including back into Canada.
Transition to Globalisation
Oil Exploration Under Arctic Ice Could Cause 'Uncontrollable' Natural Disaster
Any serious oil spill in the ice of the Arctic, the "new frontier" for oil exploration, is likely to be an uncontrollable environmental disaster despoiling vast areas of the world's most untouched ecosystem, one of the world's leading polar scientists has told The Independent.
Globalisation > Economy > Energy > Sources > Non-Renewable > Oil
Transition to Tools
Canadian Oil Exports to the United States Under NAFTA
There is a widespread belief that the North American Free Trade Agreement (NAFTA) requires Canada to sell a fixed percentage of its total oil production to the United States. It has been suggested that, under NAFTA, Canada can do nothing to curtail oil exports to the United States, even in the event of energy shortages at home. This paper examines that claim.
Tools > Regional > North America > NAFTA > Dom. Policies
Transition to Actors
Dirty Oil: How the Tar Sands are Fueling the Global Climate Crisis
The rapid development of the tar sands, the world’s largest capital project,signals the end of cheap oil. To escalate the production of high-cost and high-carbon unconventional fuels will destabilize the climate and the global economy.
Actors > Sector > Civil society > NGOs > Environment
