CANADA 2004 Review

coll OK2004vert 17/05/04 12:24 Page 1 INTERNATIONAL ENERGY AGENCY Energy Policies of IEA Countries CANADA 2004 Review INTERNATIONAL ENERGY AGENCY Energy Policies of IEA Countries CANADA 2004 Review INTERNATIONAL ENERGY AGENCY ORGANISATION FOR 9, rue de la Fédération, ECONOMIC CO-OPERATION 75739 Paris Cedex 15, France AND DEVELOPMENT The International Energy Agency (IEA) is an Pursuant to Article 1 of the Convention signed in Paris autonomous body which was established in November on 14th December 1960, and which came into force 1974 within the framework of the Organisation for on 30th September 1961, the Organisation for Economic Co-operation and Development (OECD) to Economic Co-operation and Development (OECD) shall implement an international energy programme. promote policies designed: It carries out a comprehensive programme of energy co- •to achieve the highest sustainable economic growth operation among twenty-six* of the OECD’s thirty and employment and a rising standard of living in member countries. The basic aims of the IEA are: member countries, while maintaining financial stability, and thus to contribute to the development •to maintain and improve systems for coping with oil of the world economy; supply disruptions; •to contribute to sound economic expansion in •to promote rational energy policies in a global member as well as non-member countries in the context through co-operative relations with non- process of economic development; and member countries, industry and international organisations; •to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in accordance •to operate a permanent information system on the with international obligations. international oil market; The original member countries of the OECD are Austria, •to improve the world’s energy supply and demand Belgium, Canada, Denmark, France, Germany, Greece, structure by developing alternative energy sources Iceland, Ireland, Italy, Luxembourg, the Netherlands, and increasing the efficiency of energy use; Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The following •to assist in the integration of environmental and countries became members subsequently through energy policies. accession at the dates indicated hereafter: Japan (28th April 1964), Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973), * IEA member countries: Australia, Austria, Belgium, Mexico (18th May 1994), the Czech Republic Canada, the Czech Republic, Denmark, Finland, France, (21st December 1995), Hungary (7th May 1996), Germany, Greece, Hungary, Ireland, Italy, Japan, the Republic Poland (22nd November 1996), the Republic of Korea of Korea, Luxembourg, the Netherlands, New Zealand, (12th December 1996) and Slovakia (28th September Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the 2000). The Commission of the European Communities United Kingdom, the United States. The European takes part in the work of the OECD (Article 13 of the OECD Commission also takes part in the work of the IEA. Convention). © OECD/IEA, 2004 Applications for permission to reproduce or translate all or part of this publication should be made to: Head of Publications Service, OECD 2, rue André-Pascal, 75775 Paris Cedex 16, France. TABLE OF CONTENTS 1 SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS .... 7 RÉSUMÉ DES CONCLUSIONS ET RECOMMANDATIONS .......... 15 2 ORGANISATION OF THE REVIEW ........................... 25 3 GENERAL ENERGY SCENE AND ENERGY POLICY ............. 29 4 ENERGY AND THE ENVIRONMENT ......................... 49 5 ENERGY EFFICIENCY ...................................... 65 6 OIL ...................................................... 79 7 NATURAL GAS ............................................ 93 8 COAL .................................................... 109 9 RENEWABLE ENERGY ..................................... 117 10 ELECTRICITY AND NUCLEAR ............................... 123 11 ENERGY RESEARCH AND DEVELOPMENT ................... 153 A ANNEX: ENERGY BALANCES AND KEY STATISTICAL DATA ....... 165 B ANNEX: INTERNATIONAL ENERGY AGENCY “SHARED GOALS” . 169 C ANNEX: GLOSSARY AND LIST OF ABBREVIATIONS ............. 171 3 Tables and Figures TABLES 1. Canada’s Oil and Gas Remaining Reserves ........................ 32 2. Canadian Provinces’ and Territories’ Economy and Geography, 2002 ................................................................ 34 3. Canadian Provinces’ and Territories’ Energy Production, 2001 .... 34 4. Constitutional Division of Responsibilities for Energy ................ 35 5. Energy End-use Prices, First Quarter 2003 ........................... 40 6. Total Energy-related GHG Emissions in Provinces and Territories .... 52 7. Overview of the Three Steps Envisaged under the Climate Change Plan ................................................................. 55 8. Estimated Mitigation Costs for Selected Energy Industries in 2010 . 57 9. Main Provincial and Territorial Energy Efficiency Policies, 2002 . 70 10. Oil Production Projections .......................................... 81 11.Imports of Crude Oil and Oil Products, 2002 ...................... 87 12. Exports of Crude Oil, Oil Sands Products and Oil Products, 2002 . 87 13. Canada’s Gas Reserves and Resources ............................. 94 14.Natural Gas Regulation in Canada ................................. 101 15.Western Canada’s Coal Reserves .................................. 109 16. Canada’s Hard Coal Production .................................... 109 17. Canada’s Brown Coal Production ................................... 110 18.Canadian Hard Coal Exports and Principal Destinations .......... 114 19.Canadian Hard Coal Imports ....................................... 114 20. Status of Canadian Electricity Restructuring ....................... 132 21. Indicative Average Electricity Prices, 2002 ......................... 137 22. Canada’s CANDU Reactors ......................................... 138 23. CANDU Reactors outside Canada .................................. 142 24. Canadian Uranium Resources in the Athabasca Basin............. 143 25. Estimated Government Energy R&D Expenditures, 2003-4 ....... 154 FIGURES 1. Map of Canada ..................................................... 28 2. Total Primary Energy Supply, 1973 to 2020 ....................... 30 3. Total Primary Energy Supply in IEA Countries, 2002 .............. 31 4. Energy Production by Source, 1973 to 2020 ...................... 32 5. OECD Unleaded Gasoline Prices and Taxes, Third Quarter 2003 . 41 6. OECD Automotive Diesel Prices and Taxes, Third Quarter 2003 . 42 7. Fuel Prices, 2002 ................................................... 43 8. CO2 Emissions by Fuel, 1973 to 2001 ............................. 50 4 9. CO2 Emissions by Sector, 1973 to 2001 ........................... 50 10. Energy-related CO2 Emissions per GDP in Canada and in Other. Selected IEA Countries, 1973 to 2010 ............................. 51 11.Total Final Consumption by Source, 1973 to 2020 ................ 66 12.Total Final Consumption by Sector, 1973 to 2020 ................ 66 13.Total Final Consumption by Sector and by Source, 1973 to 2020 . 67 14. Energy Intensity in Canada and in Other Selected IEA Countries, 1973 to 2010 ....................................................... 68 15.The Ten Largest Oil Producers in Canada, 2002 ................... 80 16.Final Consumption of Oil by Sector, 1973 to 2020 ................ 86 17.Refineries in Canada ................................................ 89 18. Gas Transmission System ........................................... 97 19.Final Consumption of Natural Gas by Sector, 1973 to 2020 ...... 100 20. Gas Prices in IEA Countries, 2002 ................................. 103 21. Gas Prices in Canada and in Other Selected IEA Countries, 1980 to 2002 ............................................................. 104 22. Coal Deposits and Infrastructure of Western Canada ............. 112 23. Final Consumption of Coal by Sector, 1973 to 2020 .............. 113 24. Electricity Generation by Source, 1973 to 2020 ................... 125 25. Final Consumption of Electricity by Sector, 1973 to 2020 ........ 126 26. Electricity Trade ..................................................... 130 27.Uranium Production Centres ....................................... 144 5 SUMMARY OF CONCLUSIONS 1 AND RECOMMENDATIONS Endowed with large reserves of conventional and non-conventional oil and gas, coal, uranium and hydro, Canada is among the world largest producers of most types of energy and one of the IEA’s largest energy exporters, principally to its neighbour, the United States. Marked differences among provinces and territories in terms of climate conditions and primary energy endowments, combined with a fast growing population and a strong and dynamic market economy, have impacts on energy demand and supply and raise a number of challenges for energy policy formulation and implementation. Canada’s constitution limits responsibilities of the federal government with regard to energy to international matters and inter-provincial issues and the management of uranium resources. The federal government is responsible for promoting the overall economic development of Canada. It is also responsible for preserving national interests such as environmental protection or the reduction of provincial economic disparities. Provinces have more jurisdictions over energy than the sub-national governments of other federal countries in the IEA.

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