Energy Fact Book 2016–2017 Energy Fact Book 2016–2017 Information contained in this publication or product may be reproduced, in part or in whole, and by any means, for personal or public non-commercial purposes, without charge or further permission, unless otherwise specified. You are asked to: • Exercise due diligence in ensuring the accuracy of the materials reproduced. • Indicate the complete title of the materials reproduced and the name of the author organization. • Indicate that the reproduction is a copy of an official work that is published by Natural Resources Canada (NRCan) and that the reproduction has not been produced in affiliation with, or with the endorsement of, NRCan. Commercial reproduction and distribution is prohibited except with written permission from NRCan. For more information, contact NRCan at [email protected]. Cat. No. M136-1E (Print) ISSN 2291-9066 Cat. No. M136-1E-PDF (Online) ISSN 2291-9074 Aussi disponible en français sous le titre : Cahier d’information sur l’énergie, 2016-2017 Recycled paper Preface The purpose of the Energy Fact Book is to provide key information on energy markets in Canada in a format that is easy to consult. This edition is based on data and information available as of June 2016. All data is subject to revisions by statistical sources. In some instances, more than one source may be available and discrepancies in numbers may occur because of conceptual or methodological differences. In addition, some numbers may not add up precisely due to rounding. This publication was assembled by the Energy and Economic Analysis division of the Energy Policy branch with the help of subject experts from across the Energy sector, the Minerals and Metals sector, the Innovation and Energy Technology sector, and other sectors of Natural Resources Canada. Energy Fact Book — 2016–2017 v CONTENTS PAGE 1 Energy industries 1 2 Crude oil 27 3 Petroleum products 41 4 Hydrocarbon gas liquids 49 5 Natural gas 51 6 Coal 63 7 Uranium and nuclear power 69 8 Renewable energy 77 9 Electricity 93 10 Energy demand 99 11 Greenhouse gas emissions 115 Annex 1 Units and conversion factors 119 Annex 2 Abbreviations 123 Annex 3 Sources 125 Energy Fact Book — 2016–2017 vii 1 Energy industries Definition In this publication, the following industries are considered to be energy industries: • oil and gas extraction • coal mining • uranium mining • support activities for oil and gas extraction • electric power generation, transmission and distribution • pipeline transportation • natural gas distribution • biofuels production • petroleum refineries Clean energy industries such as renewable and nuclear electricity generation, biofuels production and carbon capture and storage (CCS) facilities are contained within the definition of energy industries. Some energy-related industries (e.g. petroleum product wholesaler-distributors and coal product manufacturing) are excluded because of a lack of data. Energy Fact Book — 2016–2017 1 Energy industries Energy flow Primary sources Fossil fuels Renewables Nuclear Coal Hydro, Wind, Tidal, Uranium Natural gas Solar, Geothermal, Biomass HGLs Crude oil Transformation Coke Refined Secondary petroleum electricity products (e.g. gasoline, diesel, heating oil, and polyethylene) Electricity mix Energy final demand Other uses • residential • producer use • commercial/ • energy losses during institutional transformation • industrial • non-energy uses • transportation (e.g. feedstock for chemicals) 2 Energy Fact Book — 2016–2017 Energy industries Canada’s position in the world (2015) Resource Proved Production Exports reserve/ capacity Crude oil 3rd 4th 3rd Natural gas 17th 5th 4th Coal 15th 12th 8th Uranium 4th 2nd 2nd Electricity 7th 6th 3rd Renewable energy – 7th – Hydroelectricity 4th 2nd – Wind 7th – – Biofuels – 5th – Note: Rankings are based on proved reserves for oil, natural gas, coal and uranium, and capacity for the other energy sources. Energy Fact Book — 2016–2017 3 Energy industries North American Cooperation on Energy Information (NACEI) As part of the trilateral memorandum of understanding (MoU) concerning climate change and energy collaboration, the Energy Ministers from Canada, Mexico and the United States (U.S.) have created an institutional framework for consultation and sharing publicly available energy information among the countries. The areas of focus as they relate to collaboration on energy information include: • Energy trade statistics: Comparing, validating and improving respective energy import and export information; • Geographical energy information: Sharing publicly available geospatial information related to energy infrastructure; • Outlooks for energy supply and demand: Exchanging views and information on projections of cross-border energy flows; and • Cross reference for energy terminology: Harmonizing terminology, concepts and definitions of energy products. To access related products, visit the NACEI web portal at www.nacei.org, where you will find: • Data tables for trade flows of energy products and a methodological guide explaining the various sources of data; • Static and dynamic maps of North America’s energy infrastructure and renewable energy resource potential; • A report on the framework required to develop more harmonized North American energy outlooks; and • A cross-referenced guide of terms relevant to each of the above three areas of analysis. Note that the product offering from this trilateral collaboration will continue to be developed and updated on a regular basis. 4 Energy Fact Book — 2016–2017 Energy industries Energy in the Canadian economy (2015) Nominal gross domestic product (in 2015 prices) Industry Nominal GDP* % of Canadian ($ billions) GDP Energy (Direct) 136 7.3 • Oil and gas** 98 5.3 • Electricity 35 1.9 Energy (Indirect)*** 64 3.5 • Oil and gas 45 2.4 Total (Direct + Indirect) 200 10.8 • Oil and gas 142 7.7 Employment Industry Employment % of total (jobs) employment Energy (Direct) 280,365 1.5 • Oil and gas** 191,415 1.0 • Electricity 78,270 0.4 Energy (Indirect)*** 625,033 3.4 • Oil and gas 518,133 2.8 • Oil and gas construction 203,065 1.1 Total (Direct + Indirect) 905,398 5.0 • Oil and gas 709,548 3.9 * Natural Resources Canada (NRCan) estimates ** Oil and gas includes oil and gas extraction, support activities for oil and gas extraction, natural gas distribution, petroleum refineries, and pipeline transportation. *** These NRCan estimates include industries that supply goods and services to the energy industry, such as equipment manufacturing, construction and financial services. Revised Statistics Canada data shows that direct and indirect employment in the oil and gas sector has declined by 47,225 (6.2%) since 2014, as a result of the low oil price environment. About 16,200 Aboriginal people living off-reserve are directly employed in the energy sector. Energy Fact Book — 2016–2017 5 Energy industries Provincial/territorial nominal gross domestic product (in 2015 prices) Province/territory Energy sector % of total nominal GDP GDP ($ millions) British Columbia 9,201 4.4 Alberta 64,007 21.7 Saskatchewan 10,456 17.9 Manitoba 3,178 5.8 Ontario 15,383 2.5 Quebec 13,028 4.2 New Brunswick 1,968 7.4 Nova Scotia – – Prince Edward Island 159 3.4 Newfoundland and 5,018 19.7 Labrador Yukon 39 1.8 Northwest Territories 260 6.8 Nunavut – – 6 Energy Fact Book — 2016–2017 Energy industries Provincial/territorial employment Province/territory Energy sector % of total employment (jobs) employment British Columbia 20,400 0.9 Alberta 162,280 6.9 Saskatchewan 19,910 3.3 Manitoba 8,425 1.3 Ontario 37,290 0.5 Quebec 18,880 0.5 New Brunswick 3,300 0.9 Nova Scotia 2,645 0.6 Prince Edward Island – – Newfoundland and 5,630 2.4 Labrador Yukon 215 0.8 Northwest Territories 835 2.6 Nunavut – – Energy Fact Book — 2016–2017 7 Energy industries Energy trade Resource/ Exports* Imports product % of % % of % of % of Canadian to U.S. U.S. Canadian production U.S. imports consumption consumption Crude oil 78 99 43 20 33 Refined 26 95 29 3 13 petroleum products Natural 51 100 97 10 21 gas Coal 49 4 10 0.1 19 Uranium 86 33 18 17 – Electricity 9 100 89 2 2 Exports* • $102 billion • 21% of Canadian domestic merchandise exports • 94% ($96 billion) of total Canadian energy exports are to the U.S. • Oil and gas domestic exports totaled $93 billion, of which 98% were to the U.S. Imports • $40 billion • 8% of Canadian merchandise imports • 69% ($28 billion) of total energy imports are from the U.S. * Exports refers to domestic exports, which exclude the re-export of goods that have previously entered Canada and exit in the same condition. 8 Energy Fact Book — 2016–2017 Energy industries Capital expenditures* • $90 billion, a decrease of over $27 billion or 23% from 2014. • 36% of total investments in non-residential and machinery and equipment in Canada. • Oil and gas industries accounted for $65 billion or 26% of the Canadian total. • Oil and gas companies spent an additional $5.2 billion on exploration in 2014. * excludes residential expenditures and intellectual property investments such as exploration expenses Capital expenditures in the energy industry 120 100 80 60 $ billion 40 20 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 Other Oil and gas extraction Energy Fact Book — 2016–2017 9 Energy industries Government revenues • Federal and provincial and territorial (P/T) governments in Canada receive direct revenues from energy industries through: • corporate income taxes • indirect taxes, such as sales and payroll taxes • Crown royalties, which are the share of the value of oil and gas extracted that is paid to the Crown as the resource owner • Crown land sales, which are paid to the Crown in order to acquire the resource use for specific properties Source 2010–2014 average ($ billions) Income tax 4.9 Indirect taxes 2.2 Royalties 12.3 Land sales 2.8 Total 22.2 • The largest share of government revenues is collected from the oil and gas industry, which averaged $20.3 billion over the last five years, including $17.7 billion from upstream oil and gas extraction and its support activities.