Guest Article
Alberta: The Rising Global Energy Provider Written by Jeffrey Sundquist, Managing Director, Government of Alberta (UK Office)
Thoughts of Alberta, Canada may conjure up images of the majestic Rocky Mountains or wide open prairies, but it’s what’s under the ground that has captured the attention of the world energy market. The Province of Alberta, located in Western Canada, holds significant energy reserves. With a landmass only slightly smaller than that of France, Alberta holds more than 169 billion barrels of recoverable oil and 36.4 trillion cubic feet of natural gas. While the reserves are significant, so are the opportunities for investment. Alberta welcomes international companies to help develop these resources in an environmentally responsible manner. With its business-friendly investment climate and plans for increased production, there’s never been a better time to invest in Alberta.
Oil: Alberta’s energy resources will help Canada play a key leadership role in a world where energy demand is expected to double over the next several decades. Only 21 per cent of the world’s proven oil reserves are accessible to private sector investment and of those, 53 per cent are in Alberta’s oil sands. Alberta will double its oil production to 3.7 million barrels per day in the next eight years. This increased production will help meet an increasing share of North America’s demand, including that of the United States, which currently imports 1.4 million barrels of Canadian oil a day. Canada’s reputation as a stable, secure, reliable, and responsible partner is a key advantage in the global energy market. There are also proposals for new pipeline access to Canada’s west coast which would open up new overseas markets. There are also many opportunities for downstream resource development in Alberta, as well as for technologies that improve efficiency and minimize environmental impacts of oil production.
Renewables: The renewable energy sector also has great potential. Alberta has clean energy initiatives supporting wind, solar, and biofuels that have allowed it to increase its renewable energy output by more than 70 per cent since 1998. Alberta is the second largest producer of wind power in Canada – with plans to grow this capacity substantively in the future.
Gas: Opportunities also abound in Alberta’s natural gas industry. Alberta accounts for nearly 75 per cent of the natural gas produced in Canada. With 36 trillion cubic feet of conventional natural gas and the potential for an additional 500 trillion cubic feet of coal bed methane, the province is well equipped to supply the gas needs of North Americans for the foreseeable future. Another huge potential unconventional gas source is shale gas, which is still in the very early stages of development in Alberta.
Environmental Commitment: One of the defining features of Alberta as a world-scale energy producer is its commitment to responsible development. In 2007, Alberta became the first jurisdiction in North America to regulate large industrial greenhouse gas emissions. Emitters were required to immediately reduce per unit greenhouse gas output by 12 per cent either by physically reducing emissions, purchasing accredited Alberta offsets, or paying $15 dollar/tonne towards a technology fund. As a result, 23.8 million tonnes of emissions have been avoided, $257 million has been collected into the Climate Change and Emissions Management Fund, and $126 million has so far been committed to 27 clean technology projects. Having created Canada’s first environment ministry, Alberta has a proven track record of delivering a strong regulatory system that allows for development while protecting the air, land and water. The province is currently taking significant action to enhance its oil sands monitoring program for air, land, water and biodiversity and building a cumulative effects program that will set strict limits for industry. Alberta’s network of researchers, engineers and scientists are also focused on continued development of new technologies to improve environmental performance of the oil sands – just as their expertise unlocked this resource in the first place.
Business-friendly Investment Climate: While Alberta’s abundant energy reserves and commitment to responsible development are compelling reasons to invest; it is the province’s business-friendly investment climate and strong economic outlook that makes it even more attractive. Alberta has no net debt and a low corporate tax regime with one of the most competitive tax environments in North America. Alberta has been a leading economy in Canada for the past 20 years and the province is poised to lead Canada again in 2012. Energy investors have shown confidence in Alberta’s strong fiscal regime, setting a provincial record sale of $3.5 billion for mineral rights in 2011. Investors from around the world are finding Alberta’s royalty structure, regulatory certainty, and stable and democratic government extremely attractive. The province is also working towards a more streamlined regulatory system to enhance efficiency and speed up the approval process. Alberta is full of opportunity and eagerly seeks investors who share its vision for responsible development.
For information about these opportunities contact Jeffrey directly:
jeffrey.sundquist@
international.gc.ca
Drillers and Dealers :::
::: February 2012 Edition
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62