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Archived Industry News: 2006

October 4, 2006

Minister Lunn releases energy outlook

Ottawa — The Honourable Gary Lunn, Minister of Natural Resources, today released Canada's Energy Outlook: The Reference Case 2006, a long-term projection of energy consumption, production and greenhouse gas emissions (GHG) from now until 2020.

"The Outlook helps us understand where we are today and where we are going tomorrow in terms of our energy use," said Minister Lunn. "Canada's New Government is working to implement a real approach that delivers a healthy environment for all of us. This report will be a useful tool to guide policy decisions for Canada's energy future."

The report is consistent with historical trends and shows that economic growth, as well as changes to the structure of our energy supply, are expected to continue. Natural Resources Canada has been publishing long-term energy outlooks for three decades. This most recent report reflects consultations involving all the provinces and other key stakeholders.

September 28, 2006

Act quickly and decisively on climate change commitments, says Environment Commissioner to government

Ottawa — The federal government has done too little and acted too slowly on Canada's commitments to address the challenge of climate change, says the Commissioner of the Environment and Sustainable Development, Johanne Gélinas, in her Report tabled today in the House of Commons. She welcomes the government's agreement to act on the recommendations in her Report.

"Climate change is upon us and no matter how you look at it, the stakes for Canada are high," said Ms. Gélinas. "With its resources and powers, the federal government can make a big difference. But our findings show that it has not been up to the task so far."

It is increasingly clear that Canada will not meet its international commitments to reduce greenhouse gas emissions. The Report outlines reasons why. It says the federal government is not organized to manage its climate change initiatives effectively. Missing are mechanisms to coordinate activities across departments and to track spending and results for reporting to Canadians. It notes, too, that few federal efforts are underway to deal with the booming growth in the oil and gas sector. Looking to the future, the Commissioner urges the government to come up with a credible, realistic and clear plan with short- and long-term goals to reduce greenhouse gas emissions. A prominent part of the government's plan should address the long-neglected need to help Canadians cope with the consequences of climate change.

View the full 2006 Report of the Commissioner of the Environment and Sustainable Development on the OAG website.

September 21, 2006

CAPP releases ERAC report on 2005 research projects

CAPP and the Small Explorers and Producers Association of Canada have published the latest edition of the Environmental Research Advisory Council (ERAC) Reporter.

The ERAC Reporter summarizes the 2005 research projects funded by industry, government, and university sponsors. These peer-reviewed projects conducted by collaborative researchers relate to air, soil, groundwater and ecological health concerns that have been identified by industry, government and other stakeholders. The Petroleum Technology Alliance Canada (PTAC) administers and facilitates ERAC projects.

July 28, 2006

Alberta Environment Launches New Website that Highlights Public and Stakeholder Involvement Information

Reaching out to Alberta Environment's Stakeholders

Alberta Environment encourages active participation of all Albertans to steward our land, air and water. In order to engage early and have meaningful public and stakeholder involvement, Alberta Environment has launched a new website called, Getting Involved: Initiatives. This site provides a one-stop location where information on current, future and past public and stakeholder involvement initiatives are listed.

July 25, 2006

New strategy released to combat skill and labour shortage

The Alberta government has released its long-term labour force development strategy, which outlines a number of ways government and organizations can work together to meet skill and labour shortages and ensure the province remains globally competitive.

Building and Educating Tomorrow's Workforce: Alberta's 10-Year Strategy is based on extensive consultation, which resulted in 17 priority actions to inform, attract, develop and retain people in the workforce. The next step involves work with partners to develop sub-strategies this year for specific labour force areas and sectors: Aboriginal, construction, energy, health care, manufacturing, retail trade, tourism and hospitality.

"Without the right people with the right training in the right jobs, Alberta is not going to be able to manage its economic growth," said Alberta Human Resources and Employment Minister Mike Cardinal. "Clearly, with more than 86,000 additional Alberta workers needed over the next 10 years, we must take steps now to ensure that we have a common plan - with our partners - for building Alberta's workforce. This strategy is about the leadership that is needed to make sure we are all moving in the same direction."

The strategy, co-led by Minister Cardinal and Advanced Education Minister Denis Herard, will help shape government direction as departments prepare their future business plans and program delivery models. It will also be the basis for the sector sub-strategies.

"Ultimately, for Alberta to be a leader in innovation and respond to future challenges and opportunities, we need to ensure that all Albertans can realize their full potential," said Minister Herard. " We must pave the way for all Albertans to discover their true passions and achieve their dreams. Post-secondary education is the key to making that happen and is a cornerstone of this strategy."

As a major step in moving the strategy into action, the Ministers announced a fall symposium with key stakeholders to discuss industry best practices, new directions for businesses, innovative approaches to employee and student training and business success in attracting highly skilled workers in the knowledge economy.

June 8, 2006

National Energy Board presents Canada's summer energy outlook

Current price volatility and escalating levels of uncertainty in world events shaped today's presentation by the National Energy Board (NEB) of its summer outlook for Canada's energy markets.

The presentation, made to an audience of industry analysts and Calgary-based media, highlighted how geopolitical events, weather and storage supplies impact summer energy prices. The NEB analysts identified several issues contributing to the current price volatility in energy markets. As well, they looked at how certain pressures will impact markets this summer and into the fall.

The news release, a fact sheet [HTML] and the presentation [HTML] are available on the NEB Internet site at www.neb.gc.ca.

May 27, 2006

Alberta forms Mountain Pine Beetle Advisory Committee

The Minister of Sustainable Resource Development, David Coutts, announced the creation of a group representing a wide cross-section of stakeholders that will provide input and advice on issues related to mountain pine beetles in Alberta.

"We're at a critical point in our management of the mountain pine beetle in Alberta, with more beetles this year than in previous ones," said Coutts. "I've asked Dr. John Irwin, mayor of Crowsnest Pass, to lead this committee. We hope to bring together other affected communities along with industry, conservation and environmental groups, the federal government and mountain pine beetle experts."

Mountain pine beetles have devastated large parts of the British Columbia pine forest and can be found in more than 8.5 million hectares throughout the interior of the province. In Alberta, there are two million hectares of pine forests at risk all along the eastern slopes.

For more information about mountain pine beetles in Alberta, visit www.srd.gov.ab.ca/forests/health/mpb.html.

May 23, 2006

Bury emissions, report suggests

CANWEST NEWS SERVICE (by Margaret Munro) -- Canada could help bury its image as one of the world's worst polluters by pumping millions of tonnes of carbon dioxide underground, says a new federal report.

The report calls for immediate action on carbon capture and storage using a network of pipelines to collect the carbon dioxide spewing from factories and energy plants and inject it deep into underground disposal sites.

The report, Canada's CO2 Capture and Storage Technology Roadmap, was drawn up over the past three years with input from key players in the country's energy sector and Alberta's energy research community.

Natural Resources, a federal government department, published the 89-page report this month, but it does not reflect government policy, Mr. Reynen says. He describes it as a "guidance or reference" document -- one that's emphatic about the need for action.

The report was commissioned by the Liberal government, but appears to offer the federal Conservatives a guide for reducing pollution from large industries without offending Alberta's energy sector. Environment Minister Rona Ambrose has indicated carbon capture will be a prominent part of the government's "made-in-Canada" plan expected this fall.

The report pegs the cost at $3 to $80 for every tonne of CO2 captured, depending on the source of the gas and how far it needs to travel.

A recent report from the Alberta Research Council, which laid out an ambitious Canadian carbon capture plan, pegs "ballpark" federal and provincial government investments at $3.5-billion between 2008 and 2012.

May 17, 2006

CAPP releases 2006 Canadian Crude Oil Forecast

CAPP's 2006 Canadian Crude Oil Forecast, released May 17, projects that production of crude oil in Canada will nearly double by 2020.

The 2006 forecast extends out an additional five years from last year's forecast and highlights growth in production from Alberta's oil sands as a result of newly announced projects and the expansions of existing operations. Total Canadian oil production is projected to increase from 2.5 million barrels per day (b/d) in 2005 to 4.6 million b/d in 2015 - an increase of 750,000 b/d from CAPP's 2005 forecast. Growth after 2015 will bring total Canadian production to nearly 4.9 million b/d by 2020.

May 11, 2006

New Oil Sands Study Released

BUSINESS WIRE -- Research and Markets has announced the addition of "Oil Sands - Alberta 2006: Projects, Participants & Market Opportunities" to their offering.

Canadian oil sands production is expected to reach 1.2 million barrels per day during 2006, more than double the production levels of the year 2000. This new study 'Oil Sands - Alberta 2006: Projects, Participants & Market Opportunities' provides an objective evaluation of the rapidly developing Canadian Oil Sands industry through an examination of the industry's operations, economics, transportation and marketing opportunities.

May 3, 2006

Western Canada provinces form energy alliance, seek workers

DOW JONES NEWSWIRES (by Norval Scott) -- Canada's newly-formed Western Energy Alliance plans to roll out a marketing strategy later in 2006 in an attempt to attract more workers to the country's oil and gas sector, the body said Tuesday.

The alliance between energy ministers from Canada's western and northern provinces was created Monday, when representatives signed a memorandum of understanding to work together to meet the energy needs of Canada and North America.

"We're seeking to heighten the advocacy of the region as an energy supplier to the continent," Brendan Bell, the Northwest Territories' minister of Industry, Tourism and Investment, told Dow Jones Newswires in an interview.

Representatives from the provinces of British Columbia, Alberta, Saskatchewan and Manitoba, as well as the territories of Yukon, Nunavut and the Northwest Territories attended the summit in Winnipeg.

At the top of the agenda for discussion was the acute labor shortage facing the energy sector in western and northern Canada, Bell said. An industrial boom in Alberta's oil sands, where crude output is expected to triple by 2015, has created an acute labor crunch, with major firms like Shell Canada (SHC.T) already beginning to rethink development plans amid steeply rising costs.

The problem will likely be exacerbated as other provinces in the region develop their energy industries. Gas projects in British Columbia, uranium mines in Saskatchewan and proposed pipeline links to Canada's Arctic north are all expected to compete for the small pool of available workers, as will the 2010 Winter Olympics in Vancouver.

"It's inevitable that unless we come up with some kind of labor solution, projects will begin to be deferred," Bell said.

In response to the problem, the Western Energy Alliance plans to attempt to attract new workers to the oil sands, Bell added. It expects to stage some marketing events designed to heighten awareness of the region's energy industry in eastern Canada in the third quarter, before moving on to the U.S. in the second quarter of 2007.

"There's no easy solution, but we have to work to attract new people to come and work in the sector," Bell said. He added that a top priority for the body would be to increase training for Canada's aboriginal population, which is currently under-utilized by the energy industry.

In addition to the focus on attracting workers, the group will also target ways that cross-border regulatory efficiency can be improved, Bell said.

April 20, 2006

Glossary of terms for federal environmental assessments published

A new glossary published by the Canadian Environmental Assessment Agency of terms commonly used in the assessments is available for anyone involved in federal environmental assessment processes.

The glossary combines definitions found in the Act with explanations of terms commonly used in the federal environmental assessment process. The glossary is intended to standardize environmental assessment vocabulary at the federal level and provide federal departments and agencies, proponents, and stakeholders with a quick reference tool that assists in the use of consistent terminology. The glossary will be updated periodically.

For more information contact the Canadian Environmental Assessment Agency's Advisory and Support Programs group at training.formation@ceaa-acee.gc.ca or (613) 957-0057.

April 19, 2006

First Steps Taken Towards Made-in-Canada Approach

OTTAWA - The Government of Canada is putting in place a made-in-Canada plan for reducing greenhouse gases (GHG) and ensuring clean air, water, land and energy for Canadians. As part of developing the made-in-Canada approach, 15 programs that have completed their work or which require a different approach are being wound down.

"We will develop solutions that have clear environmental benefits to Canada and involve all Canadians - provinces, territories, stakeholders, private sector and individuals," said the Honourable Gary Lunn, Minister of Natural Resources.

The made-in-Canada approach will focus on achieving sustained reductions in emissions in Canada while ensuring a strong economy.

"The new government under Prime Minister Stephen Harper is committed to putting an end to the massive increase in GHG emissions that Canada has seen over the past decade. To do that, we need a new approach to addressing climate change that is effective and realistic for Canada," said Minister Lunn. "Our government will ensure that resources are spent on programs that work for Canadians."

A Backgrounder is available on the Natural Resources Canada website describing the 15 climate change programs being wound down.

Report on financial performance of upstream industry released

A newly released report on the financial performance of the upstream oil and gas industry, prepared for CAPP by ARC Financial Corporation, forecasts financial performance trends through 2008.

Titled Canadian Upstream Oil and Gas Industry Financial Performance Outlook 2006-2008, the report follows three different price scenarios (base, low and high). Key findings include:

• Canadian oil and gas production is shifting from conventional to unconventional resources.
• Annual revenues of $100 billion are sustainable for the next three years, although the study also looks at high and low price cases.
• Royalties and taxes paid to governments have almost doubled since the last peak in 2001 and are at record levels.
• Industry's costs are increasing rapidly.
• Canadian oil and gas competitiveness still is lower than most international jurisdictions.

March 24, 2006

B.C. Oil and Gas Commission amends Public Involvement Guideline

Effective April 1, 2006, the B.C. Oil and Gas Commission Public Involvement Guideline is amended to increase the personal consultation radius for well sites, flaring and facilities from 0.5 kilometres to 1.0 kilometres.

The amendment applies to all applications submitted to the Oil and Gas Commission (OGC) on or after April 1, 2006. The Public Involvement Guideline provides guidance for industry to involve the public in activities that may affect them.

March 7, 2006

Canada’s energy security in jeopardy

Time for the Harper government to bring in a made-in-Canada energy strategy—report

OTTAWA—A report on the Athabasca tar sands released today by the Canadian Centre for Policy Alternatives, Parkland Institute, and Polaris Institute warns of the potential enormous economic, social, and ecological threat from Athabasca tar sands development.

"The Athabasca tar sands project is the centerpiece of a continental energy plan to send massive new oil and gas supplies to the U.S.," says Tony Clarke, Director of the Polaris Institute. "Canada is sitting back and letting George W. Bush and the big oil companies dictate our energy policy."

Fuelling Fortress America: A Report on the Athabasca Tar Sands and U.S. Demands for Canada’s Energy highlights the need for a coherent national (and Alberta) energy strategy. Neither government is doing the analysis or public consultation necessary to develop policies to meet the world energy crisis—let alone ensure a secure supply of energy for Canadians.

Since the signing of NAFTA in 1992, gas exports to the US have sky rocketed from 41% to 56% of our total Canadian production, and oil from 44% to 63% of production. What’s more, as US exports continue to balloon, NAFTA prevents us from reducing this share to meet Canadian priorities.

"We have less than a 10-year proven supply of both conventional oil as well as natural gas remaining, yet most of the tar sands oil is earmarked for export to the U.S., and most of the natural gas from the Artic—by way of the yet-to-be-built Mackenzie Valley pipeline—is also intended for the U.S. market or to fuel extraction of the tar sands crude," says CCPA Executive Director Bruce Campbell.

The rapidly increasing exports of Canada’s oil and gas to the U.S. puts our own energy security as a nation in jeopardy. Despite having the second largest proven petroleum reserves in the world, Canada is already forced to import nearly 50% of the oil its people need. Quebec and the Maritimes have to import 90% of their oil needs.

"Canada’s energy is a national concern and all Canadians should have a say into what role Alberta’s tar sands will play in ensuring the country’s long-term energy security," says Parkland Institute Director Gordon Laxer. "The continuation of current energy policies is clearly not in the national interest."

The report concludes with several proposals for a made-in-Canada energy strategy.

February 2006

CAPP Releases 2006 Stewardship Benchmarking Guide

This document provides CAPP members with a standardized approach to preparing and submitting their Stewardship benchmarking data in an efficient and consistent way. The Guide provides a definition and scope for each measure, sources of information, suggested methods for calculating or estimating values, sample data validations where appropriate and reporting units.The Guide is accompanied by a Microsoft Excel spreadsheet with forumulas, references, comments and other helpful tips for more efficient completion and submission of data.

Electronic copies of this publication are available at no charge to download or view from the CAPP website.

February 23, 2006

Alberta to twin Edmonton-Fort McMurray highway

Globe and Mail -- The Alberta government is spending $650-million to twin a deadly stretch of highway running between Edmonton and Fort McMurray, Infrastructure Minister Lyle Oberg told The Globe and Mail Thursday.

The engineering work will begin shortly, and construction work will start this summer with an eye to complete the project within five years.

There have been several deadly collision on the highway, including an accident last year when four people died after an accident involving a chartered bus and a semi-tractor-trailer. Earlier this year, two oil workers died when their minivan was hit by a log flying off a truck that had swerved to avoid hitting another vehicle. The incidents renewed calls for the twinning of Highway 63, the main road leading into Fort McMurray, which is about 450 kilometres northeast of Edmonton.

The existing two-lane highway is seen as a bottleneck for growth in the oil sands projects north of Fort McMurray.

CNSC publishes information document on licensing process for new nuclear power plants in Canada

Ottawa -- The Canadian Nuclear Safety Commission (CNSC) released today an information document entitled Licensing Process for New Nuclear Power Plants in Canada. The document is the precursor to a series of regulatory documents which will be developed over the next few years and responds to requests for guidance from governments, CNSC licensees and stakeholders on the regulatory requirements and process for licensing such facilities.

The document discusses the licences required for the different phases in the life-cycle of a nuclear power plant, the Environmental Assessment process, timeframe considerations and opportunities for the public’s involvement in the licensing process.

“While the CNSC has not yet received any applications to start the licensing process for any new nuclear power plants, the information document was prepared as part of the CNSC’s due diligence”, said Linda J. Keen, President and CEO of the CNSC. “As such, it ensures stakeholders have a well-informed understanding of the licensing process.”

The information document entitled Licensing Process for New Nuclear Power Plants in Canada can be viewed on the CNSC’s website at www.nuclearsafety.gc.ca.

February 15, 2006

Arctic could be ice-free in summer in 15 years: scientists

CBC News - Scientists say they're bracing for what could be the lowest level yet of sea-ice cover in the Arctic this summer, and warn dramatic changes to the northern ecosystem could result.

More than 120 scientists from nearly a dozen nations are attending the meeting of the Canadian Arctic Shelf Exchange Study in Winnipeg this week.

The group, which conducted research over the past three years in the High Arctic, is releasing its findings, including studies from a year spent on board the Amundsen research icebreaker.

He says last year the extent of Arctic sea ice shrunk to the lowest level recorded by satellites, to a minimum he says that has never been seen before in modern times. Barber says he's now worried that 2006 could be worse.

"That minimum extent is going to be surrounded by ocean and that surrounding ocean is all going to be absorbing short-wave radiation from the sun, and it's going to all warm up that surface layer and it's going to be harder to form the ice the next year."

Barber says he's most concerned about multi-year ice. He says the loss of this type of ice can affect the habitat of species such as ring seals. He says the melting is happening too fast for them to adapt.

"So the ecosystems that have evolved to take advantage of that sea ice, you can imagine how do they adapt to such a change, it has happened so rapidly, how do they adapt to such a thing?" he says.

Scientists now say that in as little as 15 years, the Arctic could be ice-free in the summer. They say the last time that happened was more than a million years ago.

But Simon Prinsenberg, who's with the Bedford Institute of Oceanography in Halifax, says less ice could be positive for northern economies.

"A lot of people think that with less ice we might see more fisheries up there and since there's less ice it's also easier to get up there," he says.

(with notes from Patricia Bell)

February 5, 2006

FERC delivers report on Alaska gas line

Rose Ragsdale (Petroleum News) - The Federal Energy Regulatory Commission dutifully filed its first report to Congress Feb. 1 on progress made in licensing and constructing the Alaska natural gas pipeline. In 13 pages drafted under provisions of the Energy Policy Act of 2005, FERC summed up the issue, the players and the plan, but offered little new insight into the gas line's prospects. The new law also requires the commission to make additional reports to Congress every 180 days until first gas flows in the pipeline.

FERC listed three potential projects being seriously considered, including one currently being negotiated by the State of Alaska and North Slope gas producers. Despite ongoing impediments, the industry and governmental agencies are pursuing resolution of all issues, jurisdictional, environmental, permitting and financing raised by development of an Alaska pipeline, the commission said. It also noted that further development of the respective projects "will only occur after the project sponsors have concluded a successful negotiation with the State of Alaska under the state's Stranded Gas Act.

For a look at the complete report, visit "What's New" on the commission's Web site, www.ferc.gov/.

January 30, 2006

Risks of climate change 'greater than we thought': Blair

CBC News - The planet Earth is heating up faster than thought, according to a report commissioned by the British government that warns Greenland's ice cap may one day disappear. The report, titled "Avoiding Dangerous Climate Change," was released today.

"It is clear from the work presented that the risks of climate change may well be greater than we thought," British Prime Minister Tony Blair wrote in a foreword to the report. "It is now plain that the emission of greenhouse gases, associated with industrialization and economic growth from a world population that has increased six-fold in 200 years, is causing global warming at a rate that is unsustainable."

The authors estimate a regional rise in temperatures above current levels of 2.7 C would be enough to melt Greenland's two-kilometre-thick ice cap in 1,000 years. Climate change is already shifting the shape of Greenland, making it less stable. Greenland may one day be green, said Prof. Duncan Wingham of University College London.

"I believe it's a real possibility," said Wingham. "Quite simple calculations will show that the ice sheet is exposed to quite small climate changes, and these are certainly the size of changes that we're starting to see today. So yes, I think it's a real concern."

The ice-cap melting is predicted to cause sea levels to rise by seven metres.

"That would be an incredible change that would wipe a lot of low-lying areas off the map, like Florida, like Bangladesh, and would fundamentally change our coastline in Britain, " said Bob Ward of the Royal Society.

The report summarizes evidence presented by scientists during a conference sponsored by Britain's Meteorological Office last February. British ministers acknowledged the country is unlikely to meet its target of reducing carbon dioxide emissions by 20 per cent by 2010. The government is preparing a strategy to tackle the problem.

In Canada, prime minister-designate Stephen Harper said during the recent general election campaign that his party would reject the mandatory timetables and targets of the Kyoto Protocol in favour of a "made in Canada" solution.

January, 2006

CAPP releases 2005 Stewardship Progress Report

The 2005 Stewardship Progress Report describes the progress of CAPP and its members toward continuous improvement in environment, health, safety and social performance. Stewardship is a commitment to responsible and balanced resource development and continuous improvement that all CAPP members uphold. The report includes a look at the Stewardship initiative against its goals, introduces the Stewardship framework, provides examples of the collective industry approach and indivuidual company commitment. This year's report also includes the Stewardship Benchmarking Report, previously presented under a separate cover. The combination provides stakeholders with a more complete picture of the Stewardship initiaitve. Also included is a review of CAPP's progress against prior commitments to improve Stewardship and plans for the future.