The Energy Sector an Investment in the People and Communities of Atlantic Canada
Total Page:16
File Type:pdf, Size:1020Kb
The Energy Sector An Investment in the People and Communities of Atlantic Canada January 2008 The Energy Sector An Investment in the People North America needs energy and Canada, and Communities of Atlantic the United States and Mexico want to find it closer to home. These twin needs of Canada increasing demand and increased security have created a unique opportunity for On the doorstep of a growing Atlantic Canada that could drive job market 2 creation, community development and Distance between Atlantic Canada’s investment in the region well into the next major centres and the ports decade and beyond. of Boston and New York (chart) 3 Oil, natural gas and electricity; Atlantic Atlantic Canada’s energy mix 3 Canada develops and delivers all three major forms of energy for its own communities Projects and players in Atlantic and for export around the continent to be Canada’s energy sector 5 used as heat, fuel and power in homes and New Brunswick 5 businesses. Over the last few decades, the Nova Scotia 6 Atlantic Canadian energy industry has laid Newfoundland and Labrador 8 the foundation for what has become one of Prince Edward Island 9 the most significant sectors in the regional economy, and, increasingly, one of the most Exporting energy resources; diverse with its mix of traditional thermal importing human resources 10 and hydroelectric generation with newer technology such as nuclear, wind, bioenergy and tidal. Matching people and skill sets 12 Occupations that will be required by the Atlantic Canadian On the doorstep of a growing energy sector over the next decade market (chart) 12 Energy accounts for just over half of all exports from Atlantic Canada and it now Engaging in all aspects of stands poised to significantly increase its community life 13 reach. The populations of both Canada and the United States are increasing, but that Investing in the region’s future 13 growth is not evenly distributed. Driven largely by immigration, the population swell Selected Bibliography 14 is occurring primarily in large urban centres. Atlantic Canada lies on the border of one of these growth centres; the American northeast, which stretches from Maine down through Boston and onto New York City. About 14.3 million people live in New England, which encompasses the states of Massachusetts, Connecticut, Rhode Island, New Hampshire, Vermont and Maine. That’s six times the population of Atlantic Canada. Within this region are major metropolitan areas centred around Boston, The Energy Sector: An Investment in People and Communities of Atlantic Canada 2 January 2008 MA (4.5 million), Providence, RI (1.6 Combined, that’s just over 33 million people million) Hartford, CT (1.2 million), – about 11 per cent of the U.S. population – Bridgeport, CT (900,400) and Portland, ME living within a day’s drive of our region. In (513,700). Then there’s the New York City a world where trade wraps around the globe, metropolitan area. It is the most populous the New England-New York City corridor urban centre in the U.S., boasting a and Atlantic Canada are next door population of 18.8 million people. neighbours. Distance between Atlantic Canada’s major centres and the ports of Boston and New York Route Land Air Sea Saint John to Boston 650 km 520 km 280 nautical miles Halifax to Boston 1,120 km 660 km 360 nautical miles Charlottetown to Boston 1,020 km 770 km 420 nautical miles St. John’s to Boston 2,420 km 1,560 km 840 nautical miles Saint John to New York 990 km 810 km 440 nautical miles Halifax to New York 1,460 km 950 km 520 nautical miles Charlottetown to New 1,360 km 1,060 km 580 nautical miles York St. John’s to New York 2,760 km 1,850 km 1,000 nautical miles These routes, long-established by historical export in the region and expanding that links, are being viewed in a new way as trade, along with the distribution of natural Canada, and in particular the East Coast, gas and electricity, is essential for economic considers what role it may play in growth. The region’s energy sector can also connecting the rest of the world with eastern act as a magnet to attract other businesses to North America. Atlantic Canada has always the region, thereby increasing Atlantic had a strong connection with western Canada’s overall exports through the Europe but as global trade grows, the region Atlantic Gateway. is expanding its reach to Asia, South America, Africa and northern/polar routes. Atlantic Canada’s energy mix Known as the Atlantic Gateway initiative, Atlantic Canadian companies can deliver its aim is to significantly increase the flow goods and services to New England and of goods through the region via an elsewhere in North America quickly and interconnected, or intermodal, transportation safely. This is increasingly important, as the network. The four Atlantic provinces and United States looks to meet its burgeoning the federal government are working together energy requirements in the face of to develop an action plan that will benefit all increasing unrest in the Middle East, its import- and export-driven sectors of the traditional source of oil and gas, and economy. diminishing reserves along its own Gulf Coast near Texas and Louisiana. The energy sector has two roles to play in the development of the Atlantic Gateway. Naturally, it is looking north, to Canada, its Petroleum products are the top import and major trading partner. Our country is blessed The Energy Sector: An Investment in People and Communities of Atlantic Canada 3 January 2008 with ample supplies. There is Alberta, with Canada, so, to serve its growing domestic its massive reserves, much of it concentrated requirements, the region imported the raw in the oil sands; Saskatchewan, a producer materials it needed to power electricity and of crude oil and a relatively new – but rising transportation needs. The end result was the – player in the development of natural gas; construction of significant energy and Quebec, which is powered by its production, processing and transmission extensive hydro-electric resources and wind facilities. power developments. Ontario is in the midst of reconfiguring its power system, moving Towards the end of the 20th century, the away from traditional coal-fired plants, discovery, and subsequent development, of reinvesting heavily in nuclear power and offshore oil and gas fields significantly exploring the possibilities of alternative enhanced the regional energy sector and energy, such as wind. shifted the public policy focus from domestic production to the development of Crude oil and gasoline. Natural gas. Nuclear export markets. power. Hydro. Renewable energy. This is Canada’s energy mix and Atlantic Canada is These projects also brought significant unique because it is the only region of the outside investment from companies such as country that produces all these forms of ExxonMobil Canada, Husky Energy, energy. What is now a diversified energy EnCana Corporation, Petro-Canada, BP portfolio grew out of a necessity to produce Canada Energy, Chevron Canada Resources, power for the region’s businesses and for its Norsk Hydro, Shell Canada, Murphy Oil people. For decades, coal was the only raw Corporation, Repsol YPF SA and Conoco energy resource available in Atlantic Canada Limited. The Energy Sector: An Investment in People and Communities of Atlantic Canada 4 January 2008 Projects and players in Atlantic The energy sector will do this by exporting Canada’s energy sector its commodities to neighbouring markets, primarily in the U.S., and by providing the Cumulatively, the companies and projects necessary infrastructure to support new listed below make up a mix of resources that business development, and the job growth will provide energy to Atlantic Canadian that comes with it, in the region. homes, industries and the economy well into the 21st century. In Atlantic Canada, energy is both a product and a service. New Brunswick • Irving Oil • Atomic Energy of Canada Owns Canada’s largest refinery in Limited (AECL) Canada that, following a $1.5 billion In August 2007, the AECL-led upgrade, now exceeds the U.S. Team CANDU announced it is Environmental Protection Agency’s conducting a feasibility study for a performance standards for second nuclear reactor at Point petroleum refineries. The Saint Lepreau. This facility would John-based refinery, which produces produce power for the export market 300,000 barrels per day, accounts and the feasibility study includes an for two-thirds of Canada’s total in-depth consideration of market petroleum product exports to U.S. conditions in the northeastern United States. The members of The company announced in 2006 Team CANDU are: AECL, Babcock that it is exploring the potential to & Wilcox Canada, GE-Hitachi build a second oil refinery in Saint Nuclear Energy Canada Inc., John, which would double the Hitachi Canada and SNC-Lavalin company’s capacity. Nuclear. • NB Power • Canaport LNG Operates one of North America’s Canada’s first liquefied natural gas most diverse generating system, (LNG) import and regassification including the region’s only nuclear plant, which will process 28 million facility at Point Lepreau, which is cubic meters (one billion cubic feet) undergoing a $1.4 billion of natural gas a day. It is a refurbishment of its existing reactor. partnership between Repsol YPF SA It just completed the refurbishment (75 per cent) and Irving Oil (25 per of Coleson Cove, the largest cent). Repsol is the largest importer generation plant in the province and of liquefied natural gas into the U.S. has announced plans to purchase up Repsol Canada, an indirect to 300 MW of wind power from subsidiary, will import the gas and private sector developments by then transport it via the Brunswick November 2010.