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Bob Elton

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How Can Canada Develop Its Energy Riches to Build a Great Future?

Posted: 03/29/2012 3:57 pm

Making the most of Canada's energy riches has been tough work of late: The U.S. recently denied permits for the Keystone Pipeline which is planned to bring oil from Alberta to the United States; there are multiple permitting processes in place to decide on pipelines that would bring oil from Alberta through British Columbia to the West Coast and on to Asia; and competing proposals are being developed for LNG (liquefied natural gas) terminals which would enable the export of shale gas to Asia. These processes can divide us more than we would like.

Canada is not a large country in terms of population, at only 34 million, but we are the fifth largest energy producer in the world -- behind only Russia, the United States, China and Saudi Arabia. Major decisions around energy are needed all the time. Accordingly, you would expect a coherent energy policy to be in place to help frame those decisions -- but you would be disappointed.

One reason for that is our constitution -- energy jurisdiction is shared between the Federal and Provincial governments, and the Provinces face such varied energy circumstances that it is difficult to develop a bold national policy.

What are Canada's energy choices?

On the supply side, Canada has great energy resources beyond our current production, so we have stark choices about the extent, speed and nature of development.

On the demand side, we are like many countries rich in energy resources. We use energy inefficiently and unsustainably by world standards. Although our self image is probably one of being at one with nature, modern Canada is a very urban country with energy usage habits that rival those of the United States and greatly exceed those of Europe.

Compared with most of the great energy exporting nations, we have a great ability to diversify our economy -- we have a well educated workforce, healthy immigration levels to build our population and well-developed infrastructure. The question for Canada should not need to be limited to: How can we develop energy resources? Instead, we should ask: How can our energy resources best help us to build a competitive economy and a great society for generations to come?

Canadian energy policy and our sense of what it is to be Canadian

Canada is a young country, and constitutionally our Canadian identity is not defined by our Government but by all of us, whenever we came here. It follows that our identity must be shaped by our values, rather than by particular historical events or culturally shared experiences.

How can we apply our values to the discussion of our energy policy and our energy future? These are some of the major questions that we can address before we decide on each incremental energy investment.

The economic benefits of developing energy reserves are clear, especially where we see increasing prices for most forms of energy. But who benefits and to what extent?

If resource-rich provinces earn royalties and the benefits of the jobs involved in construction, and if this tends to drive the dollar up over time, what does this do to Provinces that are relatively resource poor, and whose manufacturing base is hard hit by higher energy prices and a higher Canadian dollar?

What is the best way to deal with the economic benefits -- should Provinces set up funds as was done by Norway, so that surpluses can be invested rather than just spent? If countries based on petrodollars have often struggled to deal with the effects of rich energy resources, why do we think Canada will be different?

How can we best talk about the environmental effects of developing energy resources for export? If we are in favor of aggressively developing energy resources, especially fossil fuel based resources, then what exactly is our position on climate change? Is it, for example:

  1. We deny that climate change is a problem that can be alleviated by restricting greenhouse gases (GHGs); or
  2. We agree that it is a problem that can be alleviated by restricting GHGs, but because today there is no worldwide way of restricting GHGs, it follows that if we do exploit our resources someone else will; or
  3. We agree that climate change is a problem than can be alleviated by restricting GHGs, and therefore we need to manage the risks of basing our economy too much on fossil fuel extraction, both financially and environmentally; or
  4. Some other clearly articulated position?


Is our vision of Canada one that sees us continue to build our competitiveness through many tools including education and training; and if so, how will we ensure that our energy vision and policy will help us to achieve that?

Should we put a priority on adopting a culture based on sustainable consumption at home, which would help us economically as well as environmentally, and would help us to do business better with countries where energy efficiency was prized?

And finally, how should we trade off benefits today, against benefits for the future? Do we place higher value on our own interests than those of future Canadians? How should we value the natural capital, such as water or habitat, that we use when we generate and produce energy? Do we regard it as free because currently it is not priced into the market? Or should we try to price it or at least put a value on it?

Creating a new framework to shape Canada's energy choices

Canada will benefit from a framework that allows us to develop an energy architecture that reflects Canada's situation and also our values.

The "New Energy Architecture" -- report by the World Economic Forum offers a great opportunity for us to develop that framework, using lessons learned from other countries around the world, especially those that most resemble us.

Canadians need to clearly debate and articulate the balance that we want to strike among energy security, economic benefit and environmental value. Doing that will help us all to understand the many specific energy development decisions that need to be made.

 
Making the most of Canada's energy riches has been tough work of late: The U.S. recently denied permits for the Keystone Pipeline which is planned to bring oil from Alberta to the United States; there...
Making the most of Canada's energy riches has been tough work of late: The U.S. recently denied permits for the Keystone Pipeline which is planned to bring oil from Alberta to the United States; there...
 
 
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MyTake
Release the Hydrogen Economy now!
08:55 PM on 03/30/2012
Well, I don't think the World Economic Forum "Masters", over at The House of Bilderberg, would be too enthusiastic with this article since their "cornerstone" membership is directly tied to International Finance and The Oil Cartels.

However, you want debate, then try this on for size.

We only need to release two "economies" which mute all suggestions in this article.

You release The Hydrogen Economy which will negate all TAILPIPE pollution in transport, buildings and houses.

You release The Hemp Economy which will negate the CUTTING DOWN of trees and leave them standing to do their job in nature which is to absorb the Carbon Dioxide molecule.

But, these two economies will negate The Carbon Economy, as established, over 100 years ago, by that 95% monopoly on Oil Refining, as established by Rockefeller's Standard Oil Corporation, now known as EXXON.

Oh, did I mention that David Rockefeller is that "cornerstone" member of The House of Bilderberg and he is not interested in stepping aside for the release of THE HYDROGEN ECONOMY.

Mercedes, Honda, Toyota, KIA and others are manufacture ready with their POLLUTION FREE Hydrogen Fuel Cell electric vehicles but the Oil Cartel are not installing Hydrogen Gas Pumps on their service station lots.
10:03 PM on 03/30/2012
Your comments on the Hydrogen economy are wrong. Hydrogen is not an energy source - but is a currency for energy. To get the hydrogen out of water, one must use the same amount (or more) of energy that you get when you "burn" the hydrogen and produce water. The "hydrogen economy" concept generally relied on one thing... a very large supply of low cost electricity - presumably generated with nuclear energy. Using current energy systems, with coal or natural gas as the marginal fuel (which is the case in most of North America), the use of hydrogen to fuel cars would simply move the GHG emissions from the cars to the power plants... and at a very low efficiency (less than 20%).

I found this to be a terrific article. Some other comments point out current political realities... but at least this article presents a well thought out discussion on the issues that need to be considered in moving forward... great food for thought - and potentially a good start on the discussion that is so badly needed,
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MyTake
Release the Hydrogen Economy now!
11:50 PM on 03/31/2012
Very good logic.

Back in the early 80's when Intel brought their 4K microprocessor to market, no one stood up and said that in just 2 decades, the personal computer will be present in homes and businesses and be connected to a global internet.

So too, it will be with release of The Hydrogen Economy.

Last summer, this Mercedes Benz hydrogen fuel cell electric car: http://tinyurl.com/6nxrcq2 , traveled 33,000 kilometers across the US/Australia/Asia/China/Russia and Europe. The technology is a go.

There will be a transition period where electrolysis draws electricity from the current carbon sources.

But, imagine how appreciative the people of LA would be if, tomorrow, all transport, business and homes switch to hydrogen fuel cell technology. Health care costs would drop dramatically over smog reduction.

And since the bulk of the global population lives within 100 miles of an ocean coastline, you use tidal and wave energy to power electrolysis units.

The chemistry within a tree leaf splits the water molecule when solar rays penetrate the leaf. This MIT Prof has figured this out: http://tinyurl.com/4lv3kgt , but was forced to go to India to seek venture capital.

And this fellow, now deceased, used radio frequency to split the water molecule: http://tinyurl.com/yegrx7g .

And there are many more examples to produce Hydrogen gas.
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01:59 PM on 03/30/2012
Good article Bob, however in Canada any discussion relating to a National 'Energy Policy' cannot occur independent from the rest of Canadian natural resources . I believe that if any real headway is to ever be made on a national front, a policy would need to encompass ALL natural resources, and not just those deemed to be energy resources. Responsible and equitable development in a resource based economy cannot occur by singling out one particular element, especially one that is so heavily concentrated in such a small part of the country.
03:48 AM on 03/30/2012
Neither Canada, or any other nation, can ever build a great society if the environment is being destroyed for the sake of profits. Look at what is being done to Northern Alberta - the scars being left by the tar sands will never heal - at least not in humanity's life time. Homo Sapiens has turned into Homo Stupidus and fairly soon into Homo Extinctus.