BY RANDALL ANTHONY MANG

C anada’s is on its way tobecoming a world-leadingenergy provider, but propo-

nents of that movement say Cana-da’s formidable energy assets aloneare not enough for Canada to realizeits potential.

During a recent speech to theU.S. Chamber of Commerce inBritain, Prime Minister Harperreferred to Canada as an energy“superpower” and specifically to theoil sands as “an enterprise of epicproportions, akin to the building ofthe pyramids or China’s Great Wall.Only bigger.”

Jason Langrish, a former Cana-dian government trade and invest-ment promoter in Brussels, is nowpresident of The Energy Round-table – a group that hosts executive-level meetings in Canada andabroad designed to bring executivestogether to help shape policy andstimulate investment in Canada’senergy sector.

“Energy is Canada’s ‘ticket’ inthe world. This makes us a player,”says Mr. Langrish, who says amongCanada’s assets, “We have theresources; we are peaceful, political-ly stable; and we have a prosperousneighbour who buys the lion’s shareof our products.”

Peter Krenkel, president of theTSX Group-owned Natural GasExchange, says, “If you look at ener-gy in general – crude oil, natural gas,electricity, nuclear, coal and alterna-tives – investment is required on allfronts.”

Canada’s biggest energy play –Alberta’s oil sands – is also arguablyour best model for how to developour energy assets.

There, proven reserves of morethan 170 billion barrels of oil sandscrude have made Canada theworld's second-biggest oil nationafter Saudi Arabia. But that’s onlypart of the success story.

Ken Smith, managing partner ofSecor Consulting, says, “The oilsands serves as a good example ofthe kind of foresight we need in thedevelopment of our industries ingeneral, and especially our resourceindustries.”

He notes that companies such asImperial Oil began patiently invest-ing in the oil sands “decades ago,

when the economics weren’t neces-sarily there.”

It wasn’t until recent years, how-ever, when the federal and Albertagovernments began allowing compa-nies to recover their capital andoperating costs before being chargedlarge royalties, and the price of oilbegan to soar, that oil sands devel-opment kicked into high gear.

Mr. Langrish notes today, “Theoil sands is a global project. It’s notjust Canadians or even Americanfirms. Europeans are investingheavily as well: Royal Dutch Shell,BP, Total of France, and large bankslike Société Générale and compa-nies such as ThyssenKrupp AG areinvolved.”

Craig Spurn, co-chair of theEnergy Practice Group at Blake,Cassels and Graydon LLP in Cal-gary, is among the legal profession-als facilitating foreign investment.

In recent months, Blakes hasled major transactions includingKinder Morgan’s $5.6-billionacquisition of Terasen Gas, and theChinese-state-owned SinopecGroup’s $105-million investment ina 40 per cent interest in the North-ern Lights Project and its relatedentity Synenco Energy, a partner inan estimated $4.5-billion oil sands

upgrader project. Sinopec is alsofuelling a major pipeline project toship Alberta oil to Asia throughPrince Rupert.

While Mr. Spurn says a host ofchallenges (environmental, labourshortages, infrastructure, regulatoryand others) must be addressed forthe oil sands to achieve its longer-term production targets, “Overcom-ing the challenges is in the interestsof a lot of different parties, includingCanada. It’s very viable given thesize of the prize.”

Will Canada’s other energy sec-tors get the support they need togrow? Part of the driver may be con-cern for the environment

Mr. Langrish says, “The evolu-tion on energy is about using energyefficiently and in a sustainable way –to cut costs, address environmentalconcerns, make the most of existingresources through innovation.”

This is promising news for cleanenergy systems – from clean coaltechnologies and nuclear to windpower and other renewables.

Mr. Krenkel says, “That’s thearea where people are looking toinvest: clean and renewable tech-nologies like biomass and bio-dieselthat have minimal impact on theenvironment.”

He notes while governmentincentives help, “Higher oil pricesare perhaps the greatest incentive yetto boost interest in alternativeenergy.”

Mr. Smith believes Canada isalso well-positioned to capitalize ona global renaissance for nuclearenergy, but has concerns.

“We have a world-class skill basein the research and development ofnuclear reactors. But we’ve beenmanaging this as a protected Crownoperation.

“The concern I have is can we,will we, parlay that reputation andskill into the global nuclear industryas it grows to a scale many times itscurrent size? We need to attract cap-ital, skills, partnerships that willallow us to participate in the nuclearrenaissance globally. That’s hard todo with a protected, subsidizedCrown corporation.”

Mr. Langrish says Canada’semerging geopolitical significance interms of energy security is leading todeepening policy considerations.“Now, policy makers and utilitiesneed to review options within aninternational context. Canada needsto be seen as a choice location forinvestors who have a long view onenergy and its returns.”

A special information supplement for The Energy Roundtable EB1T H E G L O B E A N D M A I LM O N D AY , S E P T E M B E R 2 5 , 2 0 0 6

BY NICOLE DUNSDON

When we flick a switch, ourlights go on. When a utili-ty powers up, the trans-

mission lines are there to deliverelectricity to customers.

Little do we know just how muchgoes on behind the scenes to bringus the power we take for granted.

While in the past, electricitycame from a local generator, today itcould easily come from California.The reason: our continental energygrid is increasingly integrated, ameasure that industry insiders say isvital to North American energy sup-ply systems.

In the west, the British ColumbiaTransmission Corporation (BCTC)

grid has been linked with Albertaand the northwestern United Statesfor more than three decades.

“Initially, electricity systemswere built to serve the needs of theprovince or state only. Over time,these independent systems werejoined together by transmissionlines,” says Jane Peverett, the CEOat BCTC. “Such integration hasmany benefits.”

The Western Electricity Coordi-nating Council (WECC), of whichBCTC is a member, represents theelectric power systems engaged inbulk power generation and/or trans-mission in Alberta, British Colum-bia, the northern portion of Baja Cal-ifornia, Mexico and all or portions ofthe 14 western states in between.

Donald Davies, senior technicalengineer with WECC, says by shar-ing power across regions, less capac-ity needs to be installed in each area.“In the northwest, loads tend topeak in the winter time, whereas thesouthwestern loads peak in the sum-mer time. One of the benefits ofinterconnection is that power avail-able in the southwest can be sold tothe northwest in the winter, and viceversa.”

He says another benefit of inter-connection is that a disturbance inone part of the Western Intercon-nection can be corrected from some-where else in that region. “Movingelectrons from one jurisdiction toanother,” as Ms. Peverett puts it.

In recognition of this mutually

beneficial relationship, power gener-ation/transmission organizations areworking together to both create andfollow the same set of standards.WECC and seven other continentalcouncils make up the North Ameri-can Electric Reliability Council.Each area in North America is sub-ject to the same reliability standards,which Mr. Davies says are undercontinuous review and revision.

While interconnections are apart of BCTC’s history, Ms. Peverettsays there is still more that can bedone to reap the benefits of integra-tion in the Pacific Northwest.

She says the regions need to pur-sue more physical ability to move

Transmission and infrastructure

City of Edmonton Ad

AN ENERGY SUPERPOWERRemarks by DON MACKINNON, President, Power Workers Union, offer insight.

EB2

REGULATORY MATTERSDERYK KING, Chairman and CEO, Direct Energy, wades in.

EB3

RISING STOCKEnergy. A redefining driver of Canada-U.S. relations.

EB4INSIDE:

See Transmission EB2

There was a time, not long ago, when Canada was best known internationally for its wide-open spaces, wheat

and hockey. Energy is rapidly changing that. While Canada’s substantial energy assets are undisputed, there

remains much to do if Canada is to fully realize its potential to become an energy superpower.

The evolution on energy

is about using energy

efficiently and in a

sustainable way –

to cut costs, address

environmental concerns,

make the most of

existing resources

through innovation.

Jason Langrish

President, The Energy Roundtable

Initiatives to strengthen the integration of electrical grids are underway from Mexico to Canada

ENERGY BUILDERS IMAGE: GETTY

Join the dialogueon energyIf you have an interest in Cana-da’s energy future, or would liketo, it can pay to keep abreast ofthe activities of The EnergyRoundtable.

This annual event draws senior representatives from energycompanies, utilities, engineering,financial service firms and othersectors for discussions on themajor drivers of energy sectorinvestment.

This year’s Energy Roundtabletakes place Tuesday, September 26in Calgary, Alberta.

To learn more, visit www.energyroundtable.org.

A special information supplement for The Energy RoundtableEB2 T H E G L O B E A N D M A I LM O N D AY , S E P T E M B E R 2 5 , 2 0 0 6

This report was produced by Randall Anthony Mang (www.randallanthony.com) in conjunction with the advertising department of The Globe and Mail, Richard Deacon, project manager • e-mail: rdeacon@globeandmail.com

DON MACKINNONPresident, Power Workers Union

C anada’s success and strengthas a nation is often attrib-uted to its diversity of cul-

tures. Going forward, this countryhas a tremendous opportunity tobecome an energy superpower byutilizing the diversity of its indige-nous fuel resources and its highlyeducated and skilled labour force.Such a future can be accomplishedby taking advantage of theseresources, increasing co-operationbetween the federal and provincialgovernments and the private sector,securing more foreign investmentand adopting successful approachesto energy sector development fromother jurisdictions around the world.

A province-by-province scan ofCanadian electricity generation byfuel type shows that, historically,water resources have played thelargest role in our electricity fuelmix; however, it also demonstratesthat not all provinces have beenequally blessed with waterresources. As a result, fossil fuelssuch as oil, gas and coal have playeda key role in Alberta, Saskatchewan,Ontario, New Brunswick and NovaScotia. Ontario and New Brunswickhave also benefited from Canada’suranium resources and our ownnuclear power technology.

This fuel diversity helped Cana-da overcome some significant disad-vantages: a large geographic areaand low population density; a cli-mate with cold winters and hot sum-mers; and an economy heavilyweighted toward resource extractionand energy-intensive, primaryindustries. Canada has also beenable to achieve a relatively highstandard of living and to export rev-enue-generating electricity to ourneighbours in the United States.

Today, we are facing an increas-ing demand for electricity, driven bya growing economy and population.At the same time, major investmentsin electricity infrastructure replace-ment and upgrades have not beenmade for decades. Ontario aloneneeds to replace 80 per cent of itsexisting generating capacity at anestimated cost of $25 billion to$40 billion. This represents a majorchallenge for Canada, and rapideconomic growth in Alberta andOntario has meant increasedreliance on electricity imports.

To continue to succeed in theglobal marketplace, Canada mustmaintain and expand the diversity ofits energy mix. All options — hydro-electric, nuclear, coal, natural gas,biomass and renewables such aswind — should be included. The realchallenge is to maximize the uniquetechnical, economic and environ-mental attributes of each option.

Coal is an important part ofOntario’s energy mix; however, theprovince must commit itself toinvesting in proven clean coal tech-nology. In Denmark and Germany,clean coal technology has played acritical role reducing air emissions.With coal as part of the energy mix,

not only would the reliability of theprovince’s electricity system bemaintained, but this affordablesource of energy could be madeavailable to Manitoba and Quebecat times of low water levels. As eachprovince looks at its respective ener-gy needs, the broader benefits thatcan accrue from increased co-opera-tion cannot be overlooked.

The sheer scale of the financialand technological challenges associ-ated with these investments suggestscollaboration may be necessary toensure success, such as BrucePower’s lease of the Bruce NuclearComplex from Ontario Power Gen-eration.

To attract investment, however,we need to establish clearer stan-dards and streamline the approvalsprocess. In Ontario, the current con-fusing mix of agencies and policiesneeds to be simplified. Recentexpert reports and recommenda-tions designed to deal with our chal-lenges have largely been ignored orhave been implemented in a piece-meal fashion. Experience in Europeshows that incentives such as taxcredits, and market-driven mecha-nisms such as emission trading,encourage industry to meet andexceed standards. These approacheshave enabled countries like Den-mark to develop biomass co-firingusing straw and wood pellets alongwith coal, expand district heating,and reduce greenhouse gas emis-sions. We must continue to makesignificant investments in trainingour labour force to equip them withthe necessary skills and educationneeded to design, build, maintainand operate an integrated electricitysystem.

Canada will not achieve energysecurity or aspire to be an “energysuperpower” if we ignore these fun-damentals.

An Energy Superpower

BCTC

Ad

The rush to fully develop Alberta’soil sands has resulted in thelargest engineering project on theplanet today, creating opportuni-ties across virtually all economicsectors.

Intent on helping Canadianmanufacturers capitalize on thishistoric boom, Canadian Manufac-turers & Exporters recentlylaunched its Innovative CanadianOil Sands Manufacturing Opportu-nities (www.icosmo.ca) initiative.This web portal provides a conven-ient way for Canadian companiesto tap into Alberta’s renaissance.

If the notion of setting upshop in Fort McMurray soundsdaunting, don’t let it stop you.Alberta’s charming capital city,Edmonton, a longtime hub of theresource industry services sector,is teeming with activity.

According to the ConferenceBoard of Canada, compared to 10other major Canadian cities,Edmonton's GDP growth ranked No.1 for the second time in two years.

“We are in the heart of one ofCanada’s biggest investmentopportunities ever,” says cityspokesperson Robert Moyles. “Forbusinesses, or people looking for agreat place to work and live, thisis the place to be.”

How big is the potential?Edmonton's $40-plus billion GDPis greater than Nova Scotia andNew Brunswick together.

Land of opportunity

ENERGY BUILDERS

Put to work, Canada

could turn its

assets into something

powerful.electricity back and forth by buildingmore transmission lines. An exam-ple of this is the proposed MontanaAlberta Transmission Line, an initia-tive of Tonbridge Power Inc. – a pri-vately funded or “merchant” trans-mission line between Lethbridge,Alberta, and Great Falls, Montana.

Ms. Peverett says more such pri-vate industry initiatives are occur-ring in B.C., including a volume ofindependent power producers thatare building new, small power gen-eration projects.

This makes collaboration evenmore important, and Ms. Peverettsays work is ongoing to eliminateseams. “We want the business rulesto be reasonably similar across theregions.”

BCTC is a member of the North-west Power Pool, whose Transmis-sion Planning Committee has creat-ed a subcommittee (called theNorthwest Transmission AssessmentCommittee or NTAC) to involveevery interested body – not just elec-trical utilities and regulators – in theplanning process.

“Since 2003, organizations haveseen a need for open planningforums with developers, merchants,load areas, tribes, environmentalgroups and any other interested par-ties, rather than just the pure relia-bility forums,” says John Martinsen,chair of the Northwest Power PoolTransmission Planning Committee.

Their work has led to some greattransmission initiatives. For exam-ple, the Canada-Northwest-Califor-nia Transmission Options Study ledto the proposal of a new tie betweenFort McMurray, Alberta and Celilo,Oregon.

TransmissionFrom EB1

Find out more at www.bctc.com

It’s a long way from the sources of our power to the places where it is needed. Moving electricity over an 18,000-kilometre grid to communities and businesses is the job of the British Columbia Transmission Corporation (BCTC). A dynamic, growing economy requires a strong electricity system to support its increasing needs. BCTC provides the innovation and operational excellence needed to help support the region’s economic engine.

BC Transmission Corporation building connections

06-92

A special information supplement for The Energy Roundtable EB3T H E G L O B E A N D M A I LM O N D AY , S E P T E M B E R 2 5 , 2 0 0 6

DERYK KINGChairman and CEO, Direct Energy

Over the last 18 months, dev-astating hurricanes, politicalturmoil in the Middle East

and global economic growth haveconverged to produce increasingvolatility in the energy prices seenby home and business owners ontheir monthly utility bills. While thetemptation for political interventionand near-term amelioration of risingenergy costs is substantial, our inter-ests as energy consumers are bestserved when governments and regu-lators resist such temptation. Infra-structure investment and conserva-tion, which are the resources neededto provide adequate supply, willresult from real energy prices.

As North America’s largest inte-grated energy company, servicingover five million business and resi-dential customers with gas, powerand home services, Direct Energy’sexperience operating in NorthAmerica’s diverse regulatory envi-ronments has shown us that compet-itive energy markets are in the bestinterest of consumers, the economyand the environment.

Establishing real wholesale andretail energy prices will attract pri-vate capital, thereby shifting therisks associated with large, capital-intensive energy infrastructureinvestment from ratepayers and tax-payers to investors. These substan-tial capital risks should belong to pri-vate investors who can more effec-tively and efficiently manage them.

Consumers should be exposedto the true cost of energy. Eliminat-ing subsidized retail energy pricing,thus allowing retail prices to reflectthe true value of energy consumed,will result in increased consumerinterest in monitoring their energyusage, implementing conservationprograms and investing in demandresponse technology.

Alberta, Ontario and morerecently British Columbia, haveeach taken steps in the right direc-tion.

The Alberta government’s con-tinued commitment to an open andcompetitive energy market has cre-ated upstream opportunities, a largegreen energy sector and a shift ininvestment risk away from ratepay-ers and taxpayers. However, the nat-ural gas rebate program continues todistort price signals, deter conserva-tion and channel government fundsto consumers irrespective of need.

The Ontario government hastaken positive steps to restore a com-petitive wholesale market with theOntario Power Authority examiningalternatives to government-backed,long-term power purchase contractsand providing some price trans-parency through wholesale powerauctions. However, wholesale pricecaps and retail electricity rebate pro-grams continue to shield consumersfrom the true cost of the electricitythat they consume. Subsidizingretail electricity prices undermines

conservation as it must then beinduced by spending additionalfunds to provide consumers withadequate incentives to conserve. It isDirect Energy’s hope that theOntario government will continueto support the restoration of com-petitive wholesale and retail electric-ity markets, so that energy prices areallowed to work for, rather than

against, the longer-term interests ofOntario’s energy consumers.

In comparison, in Texas, thepolitical and regulatory will to con-tinue the transition to a fully func-tioning competitive electricity mar-ket has been repeatedly validated.Non-intervention by government orregulators and the resulting market-based pricing has prompted Direct

Energy to invest in over 1,200 MWof power generation capacity andsign off-take contracts for 443 MWof wind power.

Direct Energy is stronglyencouraged by the actions taken bythe British Columbia government tocreate an environment that willenable competitive retail prices tobe brought to residential and small

commercial natural gas customers in2007.

In the coming year, Direct Ener-gy is prepared to invest infrastruc-ture capital in North American mar-kets that offer stable investment cli-mates and energy markets foundedon competition and true wholesaleand retail prices.

Creating an environment that

encourages infrastructure invest-ment and energy conservation mustremain a priority for Canadian poli-cymakers. The most direct way toencourage investment and conser-vation is to let prices reflect trueenergy supply and demand funda-mentals. Policymakers should notlose sight of this simple but verypowerful economic principle.

Energy prices will drive infrastructure and conservation

5 x 240

Power Workers Union

Ad

Producing oil from Alberta’s oil sandsrequires energy. The challenge: naturalgas, today’s most commonly usedenergy source, is widely consideredunsustainable for economic and supplyreasons.

Among the options under consider-ation is a nuclear facility. Energy Alberta Corporation says a Canadian-designed CANDU nuclear plant couldsupply electricity as well as steam andhydrogen for oil sands recovery andupgrading, not to mention a means ofoffsetting greenhouse gas emissions ofoil sands operations.

For more information, send an e-mail toinformation@energyab.com.

Power to the sands

ENERGY BUILDERS

A special information supplement for The Energy RoundtableT H E G L O B E A N D M A I L

M O N D AY , S E P T E M B E R 2 5 , 2 0 0 6EB4

Cntr for Energy Ad Blakes Ad

BY RANDALL ANTHONY MANG

Canada’s growing reputationas an energy superpower isredefining our role in the

world, a change perhaps no morestrongly reflected than in the evolv-ing dynamic between Canada andits largest trading partner, the Unit-ed States.

Fuelling this change is Alberta’soil sands – an oil resource second inthe world only to Saudi Arabia’s.

Alberta already supplies the U.S.with 11 per cent of its energy. Intenton increasing oil sands production,interests on both sides of the borderare focused on growth-related issuesincluding labour mobility, researchand development, investment, infra-structure and regulatory streamlin-ing.

Scotty Greenwood, executivedirector of the Washington, D.C.-based Canadian-American BusinessCouncil, said, “The historic asymme-try of the Canada-U.S. trade relation-ship is getting flipped on its head.

“The U.S. is a net importer ofenergy; Canada is a net exporter,

and a much safer and more reliablepartner than many U.S. suppliers.All things considered, it’s much bet-ter value to get our energy fromCanada.”

Many of America’s top businessand political leaders are taking note.

This summer, when Prime Min-ister Harper visited George Bush inWashington, D.C., the Presidentreportedly commented, “I see theAlbertans are in town,” gesturing tothe 100-tonne oil sands truck parkedin the National Mall.

The massive vehicle was part ofAlberta’s display at this year’sSmithsonian Folklife Festival. It wasthe first time an international sub-national jurisdiction had been fea-tured at this prominent Americanevent, which drew close to a millionvisitors.

Murray Smith, Alberta’s repre-sentative in Washington, D.C., says,“At a million barrels a day, we’regetting noticed. We have the poten-tial to produce five million barrelsper day, which is half of currentSaudi production.”

Realizing this five-fold produc-

tion increase, however, will takedecades and increasing bilateral co-operation.

Mr. Smith says in addition tostronger co-operation on buildingnew pipeline capacity, increasingand diversifying refinery capabili-ties, regulatory efficiency, “We mustwork to create positive environ-ments that will facilitate the financ-ing and construction of these greatenergy products.”

Among its efforts, the CABC islobbying U.S. policymakers to sup-port oil sands-related research anddevelopment.

“It’s clear that in 2007, Congressis going to be spending huge moneyon alternative energy programs.They should include spending oncleaner, more efficient ways todevelop the oil sands, but it will takesome advocacy,” says Ms. Green-wood.

Business interests well outsidethe energy sector have plenty togain from oil sands development.The opportunities haven’t escapedthe attention of industry groups suchas Canadian Manufacturers &

Exporters, which recently launchedits Innovative Canadian OilSands Manufacturing Opportunities(www.icosmo.ca) initiative to matchmanufacturers with opportunities.

“It is estimated that over 60 percent of the steel used in FortMcMurray is touched by Ontariohands. With trucks assembled in Illi-nois, tires sourced from the Caroli-nas and talent sourced from aroundthe world, it has been said that a bar-rel of oil from the oil sands is themost value-added barrel of oil in theworld,” says Mr. Smith.

As great as Alberta’s capacitymay be, Mr. Smith cautions, (at fivemillion barrels per day) the oil sandscould provide the U.S. with “a50 per cent solution. It can eithersatisfy declining production or eco-nomic growth, but it can’t do both.”

As such, he says the U.S. mustalso focus on efforts such energyconservation and the expansion ofalternative energy assets. At thesame time, Canada must continue todevelop its other energy assetsincluding coal, nuclear and renew-ables.

Canada’s stock rising on oil sands

ENERGY BUILDERS

At a million barrels a

day, we’re getting noticed.

We have the potential

to produce five-million

barrels per day.

Murray Smith

Alberta’s representative in

Washington, D.C.

What we bring to the

table is not only energy

producers, but also the

users – major industry

that drive the economy

and create jobs. It

broadens the dialogue

about what the needs

are and what needs to

be done.

Scotty Greenwood

Canadian-American Business Council

F igures provided by the Alber-ta-based Centre for EnergyInformation, based on statis-

tics from its own research and indus-try and government sources, pro-vide a snapshot of the massive eco-nomic contributions and potential ofkey Canadian energy assets.

CoalCanada has approximately 6,578million tonnes of coal reserves. Pro-duction for 2004 totalled approxi-mately 66 million tonnes. Coal pro-vides about 56,000 direct and indi-rect jobs in Canada and contributesapproximately $5 billion to theCanadian economy.

Canada exported 27.1 milliontonnes of primarily coking coal in

2004 and imported 19 milliontonnes of coal in 2004, of which 15.6million tonnes were thermal coal.Total domestic consumption for2004 was 59 million tonnes, ofwhich 55 million tonnes went toelectricity generation.

Canada currently has almost17,000 MW of coal-fired generatingcapacity, located primarily in Alber-ta, Saskatchewan, Ontario and NewBrunswick. This represents about 18 per cent of the country’s totalgenerating capacity.

Crude OilWith 175 billion barrels of crude oil,Canada is second only to Saudi Ara-bia in crude oil reserves. Canada’soil reserves comprise approximately4.4 billion barrels of conventionaloil and approximately 171 billionbarrels in its oil sands deposits.

Canada produces 2.5 millionbarrels of crude oil daily and is cur-rently the ninth-largest producer ofcrude oil in the world. Current Cana-dian oil exports total almost 1.578

million barrels per day, 99 per centof which goes to the United States.

Canadian crude oil production isforecast to be 4.6 million barrels perday by 2015, with further potentialgrowth to 4.9 million barrels per dayby 2020. Oil sands could provide asmuch as 50 per cent of Canadiancrude oil production by 2007 and upto 90 per cent by 2025.

Wind Power Canada currently has almost 1,050MW of installed wind power capac-ity and is estimated to have technicalpotential for more than 40 GW ofwind power.

Canada’s production target of 4gigawatts of wind energy by 2010would provide enough electricity formore than 250,000 Canadianhomes.

The Canadian Wind EnergyInstitute (CanWEI) will open atNorth Cape, Prince Edward Island,in 2006. CanWEI will support thedevelopment of wind power genera-tion in Canada and wind energy

related products and services forCanadian and export markets.

Nuclear Power Nuclear energy in Canada is usedfor peaceful purposes such as elec-tricity generation, medicine, agri-culture, research and manufactur-ing. The nuclear power industryprovides 21,000 direct jobs, 10,000indirect jobs and employs 150 firmsin Canada. In 2005, 17 of 22CANDU reactors were in service,generating 15 per cent of Canada’selectricity. Saskatchewan is theworld’s largest uranium producer.About 30 per cent of the world’suranium production comes fromthis province.

HydroHydropower is Canada’s numberone renewable energy generationsource, and is expected to remainthat way into the foreseeable future.It contributes about 60 per cent ofCanada’s total generation capacity.

Canada currently has nearly 370hydro-generating facilities and isplanning to develop 17 morehydropower facilities across thecountry prior to 2015. ChurchillFalls Hydroelectric Generating Sta-tion in Labrador is the largestunderground powerhouse in theworld with a rated capacity of5,428 MW.

Natural Gas The Canadian Association of Petro-leum Producers estimates the com-bined marketable resource poten-tial of conventional natural gas andcoal bed methane to be 537 trillioncubic feet.

Canada produced an average of17.3 billion cubic feet per day of nat-ural gas in 2005, of which 10.2 bil-lion cubic feet per day were export-ed to the U.S. The upstream petro-leum industry employs more than365,000 people directly and indi-rectly in activities related to finding,producing and processing oil andnatural gas.

A recent Deloitte study found thatwhile 80 per cent of energy companieshad discussed concerns about thegrowing skilled labour shortage at theboard level, only 39 per cent of oil andgas company respondents had identi-fied the skills they need to grow theirbusiness going forward and only 18per cent had begun active planning todeal with the labour shortfall.

“This is not just an oil sandsissue,” says Cheryl Knight, executive

director and CEO of the PetroleumHuman Resources Council of Canada.“In the conventional oil and gas sec-tor, there is a high degree of activitythroughout Canada, particularly in thewestern provinces. The demand forskilled labour will continue to grow aspeople age and retire.”

Ms. Knight sees the educationpartnerships between industry, gov-ernment and education as vital to thesolution, but says that the linkage

needs to extend further, into juniorand high schools, where students areoften unaware of the more than 70occupations offered by the industry.

Another important element of thesolution is interprovincial migrationand immigration from other countries.Most immediately, she says, both gov-ernment and industry are challengedto more effectively engage skilledCanadian and immigrants already inthe country.

“We’re also seeing shifts,” saysMs. Knight, “that will change thenature of the oil and gas workforce toinclude more women, Aboriginals andother under-represented sources ofskilled labour. Employers are workingto engage these employees and toretain them through new humanresources policies that make the workenvironment more attractive.”

“We’re starting to see significantinvestments in education,” says

Deloitte partner Stephen Diotte, headof the new Human Capital Division inCalgary, “but there is a lag betweengetting those programs online andaccessing the skills. We’re encourag-ing our clients to first figure out whatskills they need, and when; in theshort term, we’re advising them tofocus on productivity.”

Mr. Diotte cites a recent Universityof Calgary study that concludedemployees in the sector were produc-

tive only 37 per cent of their day, notbecause they didn’t want to workhard, but because of efficiency issueslike equipment and transportationlogistics. “Productivity is not a meas-ure organizations have been con-cerned about as much as they need tobe in the future. Even a 10 per centimprovement can have a significantimpact.”

- Lori Bamber

Now Hiring. Energy sector grapples with labour shortfall

Energy assets

Statistics illustrate

Canada’s potential.

It takes a lot of energy to get Canada ready for work every day

All about energy. All in one place.

Canadian energy supports our way of life and powers our economy.

Consider how much energy it takes to run Canada every day.

From your alarm clock (and its snooze button) to a hot shower, hot coffee, and hot breakfast, energy plays an essential part every step along the way. Whether it’s natural gas for your water heater or electricity for your microwave, Canadian energy powers them all.

The Canadian Centre for Energy Information provides extensive information about energy resources from Canada. Visit us today to learn why stable and sustainable energy development is critical to the Canadian way of life.

To learn more about the essentials of energy, please visit www.centreforenergy.com