Western Canadian Vision of North American Energy Trade

1
Western Canadian Vision ofNorth American Energy
Trade

• Panel Presentation to the WIEB/WGA Workshop on
  North American Energy Trade
• May 1- 2, 2002
• San Diego, California

2
Western Canadian Vision ofNorth American Energy
Trade

• Workshop Purpose Identify key cross-border
  energy issues for
• US Governors and Canadian Premiers at Western
  Premiers Conference June 6, 2002 in Dawson City,
  Yukon
• US Governors and their Mexican/Canadian
  counterparts at the WGA meeting June 22-25, 2002
  in Phoenix, Arizona

3
Western Canadian Vision ofNorth American Energy
Trade

• Panel 1
• Challenges and Opportunities for a North American
  Energy Market
• Visions of Western Canada, US and Mexico on
  meeting energy needs in Western N. A.
• Suggest actions for Mexican, US and Canadian
  co-operation

4
Western Canadian Vision ofNorth American Energy
Trade

• Western Canadian provinces are associate members
  of WIEB
• British Columbia
• Alberta
• Saskatchewan

5
Western Canadian Vision ofNorth American Energy
Trade

• Vision
• free and open markets
• mutual energy security
• energy reliability across borders
• economic benefits for all parties

6
Western Canadian Vision ofNorth American Energy
Trade
7
Western Canadian Vision ofNorth American Energy
Trade
8
Western Canadian Vision ofNorth American Energy
Trade
9
Western Canadian Vision ofNorth American Energy
Trade

• Western Canadian energy resources are primarily
  owned by the three provinces
• hydropower
• oil
• natural gas
• coal
• uranium

10
Western Canadian Vision ofNorth American Energy
Trade

• Western Canada resources exceed
• 300 trillion cubic feet of natural gas
• 1.6 trillion barrels of oil sand resource
• 28 billion barrels of oil reserves
• 100 billion tonnes of coal

11
Western Canadian Vision ofNorth American Energy
Trade

• Industry forecasts of demand
• up to 30 - 34 trillion cubic feet of annual US
  natural gas demand in 2010 - 2020
• continued growth for electricity and oil

12
Western Canadian Vision ofNorth American Energy
Trade

• Canada-US trade historically based on
• economic efficiency
• security
• reliability concerns
• Vision growth to now include Mexico

13
Western Canadian Vision ofNorth American Energy
Trade

• Federal Trade agreements help realize Vision
• reduce risk
• safeguard energy investments made in each others
  nation

14
Western Canadian Vision ofNorth American Energy
Trade

• Formal trade arrangements completed
• 1989 Canada-US Free Trade Agreement (FTA)
• 1994 North American Free Trade Agreement between
  Canada, Mexico and the US (NAFTA)

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Western Canadian Vision ofNorth American Energy
Trade

• Key energy trade discussions underway by federal
  governments to build on NAFTA
• Free Trade Area of the Americas (FTAA)
• North American Energy Working Group (NAEWG)
• Bilateral Agreements

16
Western Canadian Vision ofNorth American Energy
Trade

• Provincial Tasks to realize Vision
• Regional Transmission Organizations (RTO)
• Aboriginal Land Claims
• Task Force on Energy Pipeline Regulation
• Environmental Reviews

17
Western Canadian Vision ofNorth American Energy
Trade

• Potential Kyoto Protocol Impacts
• coal fired generation plants
• oil sands and heavy oil investments
• Arctic natural gas investments

18
Western Canadian Vision ofNorth American Energy
Trade

• 87 of Canadas exports are to US
• opportunity to work on responding to climate
  change with our North American partners
• clean coal technology
• carbon dioxide capture and storage
• sustainable agricultural and forestry practices

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Western Canadian Vision ofNorth American Energy
Trade

• Western Provinces and States to identify
  opportunities for
• cross-border electric transmission capacity
• regulatory co-ordination between federal, state,
  and provincial regulators

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Western Canadian Vision ofNorth American Energy
Trade

• Western Canada seeks expanded energy relationship
  with Mexico
• provision of energy services and energy
  investments to Mexico
• welcome Mexican firms to invest in Canadas
  energy sector

21
Western Canadian Vision ofNorth American Energy
Trade

• Task of US Governors, Mexican Governors and
  Canadian Premiers
• identify joint priorities to national
  governments
• ensure Western opportunities and needs are met

22
Western Canadian Vision ofNorth American Energy
Trade

• Together, our three nations can
• provide for our citizens energy needs
• increase energy reliability
• safeguard the security of energy supplies from
  international interruptions