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Canadian Oil and Gas: The US Needs Less. Asia Needs More.

CANADIAN OIL AND GAS THE U.S. NEEDS LESS. ASIA NEEDS MORE. LACK OF MARKET ACCESS HAS COST CANADA AS MUCH AS $50 MILLION A DAY The world will rely on oil and gas for the foreseeable future. If Canada does not export oil and gas, the world will not stop using hydrocarbons; Canada will simply miss out on a rare opportunity. AA99 will still account for 51% of energy demand in 2035, down just 3% since 2010. (Source: International Energy Agency) Oil and gas Canada's Oil and Gas Sector TIME CARD Estimated number of people employed (direct and indirect) 20% of Canada's exports 20% of Canada's GDP growth 2010/11 550,000 7% of Canada's GDP THE PROBLEM BORDER Canada can no longer rely on the U.S. as the destination for virtually all its oil exports. 98% 100% Current U.S. exports: Petroleum Natural Gas The U.S. is predicted to drastically reduce its oil and gas imports over the next 25 years US Natural Gas Imports US Petroleum Imports 2010 '20 30 40 2010 '20 '30 40 The fastest growing markets for oil and gas now lie in non-OECD nations. Canada should be well positioned to respond to these opportunities, HOWEUER Canada currently lacks the infrastructure to get energy to tidewater and overseas. The lack of access to global markets often forces Canadian oil producers to accept lower prices. This has cost Canadian producers as much as $50 million a day in lost revenues. WHAT $50 MILLION A DAY REALLY MEANS TO CANADIANS: 3/4th of the costs of the tidal energy project in the Bay of Fundy $50 million could pay for the Saint-Laurent Sports Complex in Montreal I HOSPITAL ($86 million) The cost of a year's expenses for the Perth and Smith Falls ($43 million) District Hospital in Ontario ($49 million) THE ASIA OPPORTUNITY Asia will see its energy imports increase dramatically in the future. XXXXX 1800 Asian Natural Gas Consumption 1500 1200 900 600 Asian Petroleum Imports 300 2010 '20 '30 2000 '10 '2o 30 40 Getting Canadian oil and gas to Asia would mean billions in additional investment Over the next 25 years, anticipated investment of $386 billion in Canada's natural gas sector will provide: 131,000 additional jobs Almost as much as the entire machinery manufacturing sector per year $3.1B Enough to cover health care spending in Newfoundland in taxes per year $364B in additional GDP (Conference Board of Canada) What is the safety record of oil and gas transport in Canada? Canadian railways are experienced in trans- porting dangerous goods. 1.5 trillion litres of oil were trans- ported by pipeline in 2011 with a success rate of 99.999% Canadian oil tankers recorded zero spills in the 2000s PERCEPTION vs REALITY Canadians are struggling to reconcile two visions of their country Pristine wilderness and A globally important producer of natural resources. natural beauty With the right technology and government policy, these visions can co-exist. An Albertan demonstration plant is being devel- oped to use algae to transform carbon emissions from oil sands facilities into products like biofuels Shell diverts municipal sewage, treats it and uses it in natural gas production instead of water from river and lakes. The perception that Canadian energy resources are uniquely damaging to the global climate is fals Fact: Oil Sands production represented only 0.16% of global emissions - a fraction of those produced by U.S. coal plants. Green House Gas Emissions - 100 million tonnes 50 million tonnes 15 million tonnes Canadian oil sands power plants U.S. coal-fired power plants Canadian coal-fired Fact: About 70-80% of emissions contained in a barrel of oil are created when gasoline or diesel is burned, not when crude oil is produced. The transition to a low carbon economy will be led by changing energy consumption, and by advancing environmental innovation in our energy production. As a country, Canada has the skills and technology to develop its energy resources, yet we have no export capability beyond the U.S. The solution is obvious: Canada needs to build the infrastructure to connect supply with demand in the international market. SUPPLY DEMAND Canadians must come to grips with three facts: Tomorrow's growth in energy consumption lies largely in Asia; there are plentiful global supplies of oil and gas to satisfy this demand The lack of access to global markets cost Canadians millions every day 2 With the right technologies and policies, Canada can find a way to produce natural resources while protecting the environment 3 The speed with which the people of Canada can react to these realities will determine Canada's ability to compete as a nation in the 21st century. THE CANADIAN CHAMBER OF COMMERCE LA CHAMBRE DE COMMERCE DU CANADA VISUAL CAPITALIST Millions barrels / day Millions barrels / day 으 0 ㅇ 4 2 0 8882 으 5 Million tons of oil E Equiv. Trillion cubic feet

Canadian Oil and Gas: The US Needs Less. Asia Needs More.

shared by visualcap on Sep 16
The fastest growing markets for energy exports now lie in non-OECD nations. However, Canada cannot respond to this opportunity as it lacks the infrastructure to get energy to tidewater and overseas. ...


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