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Canada’s Natural Resources
and Energy
Sector Analysis
1
Presentation Overview
1. Industry Overview
– Introduction
– Performance
2. Forest
– Sector Profile
– Performance
– Employment
– Trade
– Paper Manufacturing Sub Sector
- Introduction
- Employment
- Performance
– Wood Products Manufacturing Sub Sector
- Introduction
- Employment
- Performance
2
Presentation Overview
3. Minerals and Mines
– Sector Profile
– Performance
– Employment
– Trade
– Mining and Quarrying Sub Sector
- Introduction
- Performance
4. Energy
– Sector Profile
– Performance
– Employment
– Trade
– Crude Oil Sub Sector
– Natural Gas Sub Sector
– Petroleum Sub Sector
– Electricity Sub Sector
– Renewable Energy Sub Sector
5. Emerging Trends
3
Canada Natural Resources and Energy
Industry Overview
4
Canada Natural Resources and Energy
Introduction
•
•
•
•
•
The natural resources sectors and earth sciences industries have been
an engine of economic growth and job creation for generations
In 2009 alone, the sectors generated 11 percent, or $133 billion, of
Canada’s gross domestic product (GDP) and directly employed close
to 759,000 people
Natural Resources Canada (NRCan), a department of the
Government of Canada, has a mandate to ensure the sustainable
development and responsible use of the country’s natural resources
Natural resources sector is classified as forests, minerals and metals,
energy, and geomatics and geoscience – fundamental to the daily
lives of Canadians
As a leading exporter of natural resources and resource-based
technology and knowledge, Canada contributes to the wellbeing of
people in many countries and promotes the sustainable development
of natural resources in today’s investment climate
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
5
Canada Natural Resources and Energy
Industry Performance
6
In 2009, the sector generated 11 percent, or $133
billion, of Canada’s gross domestic product (GDP)
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
7
The natural resources sector was a major contributor
to the Canadian economy with a GDP of $133 billion
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
8
In 2009, the natural resources sectors (energy, forest
and mining) had a trade balance of $69.5 billion (33%)
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
9
In 2009, the natural resources sectors played a
important role in GDP Employment, Trade and New
Capital Investments
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
10
Forest sector
Introduction
11
Industry classification – Forest Sector
SECTOR
Source: Datamonitor
FOREST
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
12
Canada’s Forest Sector is one of the leading sectors in
the world
•
C
ƒ anada has 10 percent of the world’s forests
•
Canada’s forest, other wooded land and other land with tree cover
are made up of 347.7 million ha (87.5 percent) of forest, 41.8 million ha
(10.5 percent) of other wooded land and 7.8 million ha (2 percent) of
other land with tree cover
•
Annually, less that 1 percent of Canada’s forests are harvested; 0.7
million ha were harvested in 2008
•
Revenues from the sale of timber from provincial and territorial crown
lands were estimated to be $0.7 billion in 2008
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
13
Forest sector has three main subsectors, Solid wood
product manufacturing, Pulp and paper product
manufacturing and Forestry and logging
There are three main subsectors:
• Solid wood product manufacturing
• Pulp and paper product manufacturing
• Forestry and logging
SECTOR
FOREST
Source: NRCAN- Natural Resource Canada
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
14
The contribution of forest biomass to Canada’s
secondary energy use has increased from about 3.5%
in the 1970s to about 6.5% today
SECTOR
FOREST
Source: NRCAN- Natural Resource Canada
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
15
Forest sector
Industry Performance
16
Forest Sector contributes to 1.8% of the Canadian
GDP
•
•
•
•
•
The forest sector’s contribution to the Canadian economy (GDP)
in 2002 constant dollars was $20.9 billion, or 1.8 percent, in 2009
In 2009, shipments of pulp, paper and paperboard reached a
level of 21.1 million tonnes (t), a decrease of 16.1 percent from the
previous year
Production of softwood lumber was 44.4 million cubic meters in
2009
New capital investments totaled $1.6 billion in 2009: pulp and
paper product manufacturing industry, $0.9 billion (56.2 percent);
wood product manufacturing industry, $0.5 billion (31.3 percent);
and forestry and logging industry, $0.2 billion (12.5 percent)
Revenue from goods manufactured was $60.8 billion in 2008
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
17
Canada’s forest industry varies across the country
•
Eastern Canada is dominated by pulp and paper product
manufacturing
•
Western Canada is dominated by wood product manufacturing
•
Quebec, Ontario and British Columbia have the greatest numbers
of forest workers
•
The Atlantic Provinces, Quebec and British Columbia are the most
forest-dependent regions, with a large share of their economy
based on the sector
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
18
Forest sector
Employment
19
The Forest sector provides direct employment to 1.3 %
of Canadian work force
•
In 2009, the sector provided direct employment for 195 300 people,
representing 1.3 percent of total employment in Canada: wood
industries, for 89 400 people; pulp and paper product manufacturing
industry, for 66 600 people; forestry and logging industry, for 28 300
people; and support activities for forestry industry, for 11 000 people
•
Employment is spread across Canada but is primarily in Quebec (68
000 people), British Columbia (46 800 people) and Ontario (40 700
people)
•
Wages and salaries for direct employment were $10.3 billion in 2008
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
20
Forest sector
Trade
21
Canada is the world’s largest forest product exporter
• Iƒn 2009, Canada was the world’s third-largest forest-product exporter
(8.3 percent)
• Forest products were a major contributor to Canada’s surplus balance
of trade in 2009 ($14.4 billion)
• The total value of Canadian forest-product domestic exports
decreased by 21.7 percent in 2009 to $23.6 billion
• British Columbia accounted for $7.5 billion (31.8 percent); Quebec,
$7.4 billion (31.4 percent); Ontario, $4.0 billion (17.0 percent); and
other provinces and territories, $4.7 billion (19.8 percent)
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
22
Paper Manufacturing subsector
Introduction
23
Ontario has the highest number of Paper
Manufacturing establishments
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
24
There is an average annual increase of 0.8% in the
number of establishments in the Paper Manufacturing
subsector but a decrease of 2.2% for last year
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
25
The percentage of small and medium-sized businesses
that were profitable in the Paper Manufacturing
subsector in 2008 was 65.9%, with 34.1% of firms failing
to turn a profit
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
26
Paper Manufacturing subsector
Employment
27
The total number of employees in the Paper
Manufacturing subsector decreased on an average
by 4.8% between 2000-09. There was a decrease of
9.0% in employment between 2008 and 2009
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
28
The number of production employees saw a decrease of
5.1% per year on average and a decrease of 9.9% in the
last year. Administrative employees saw a decrease of
3.9% per year and a decrease of 5.9%in the last year
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
29
In the Paper Manufacturing subsector, total salaries
and wages paid to employees have decreased from
$5.2 billion in 2000 to $3.7 billion in 2009, an average
annual decrease of 3.4%
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
30
Between 2008 and 2009 production worker wages decreased
by 10.5%. The salaries and wages of administrative workers, on
the other hand, declined from $1.3 billion to $1.0 billion.
Salaries and wages decreased by 6.5%
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
31
Paper Manufacturing subsector
Performance
32
Net revenues in the Paper Manufacturing subsector
have decreased from $12.8 billion in 2000 to $833.9
million in 2009 or by 0.2% per year on average. In the
latest year net revenues decreased by 30.6%
SECTOR
FOREST
Source: Canadian Industry Statistics:
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
33
The decrease in GDP reported between 2001 and
2010 represented a compound annual rate of 2.7%.
Between 2009 and 2010, the total value-added of the
Paper Manufacturing subsector increased by 1.5%
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
34
Exports from Canada to US is way higher compared to
exports to other countries
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
MINES
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
35
Most of the exports happen out of the province of
Quebec
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
36
Wood manufacturing subsector
Introduction
37
Ontario has the highest number of Wood Product
Manufacturing establishments
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
38
The number of establishments increased by an
average of 4.5%. Over the most recent year, the
number of establishments decreased by 3.7%
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
39
The percentage of small and medium-sized businesses
that were profitable in the Wood Product
Manufacturing subsector in 2008 was 73.2%, with 26.8%
of firms failing to turn a profit
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
40
Wood manufacturing subsector
Employment
41
The total number of employees in the Wood Product
Manufacturing subsector decreased by 4.3% over
2000-09 time span. There was a decrease of 14.3% in
employment between 2008 and 2009
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
42
The percentage of employees that are production
workers decreased from 88.0% in 2000 to 82.0% in 2009.
As a result, there was a relative increase in the
proportion of administrative workers
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
43
The average annual salaries for employees of the
Wood Product Manufacturing subsector rose at an
average rate of 1.2% per year. There was a decrease
of 0.6% over the 2008-2009 period
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
44
The salaries and wages of administrative workers, on
the other hand, grew at an average annual rate of
0.3%. Between 2008 and 2009, these salaries and
wages decreased by 13.1%
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
45
Wood manufacturing subsector
Performance
46
Net revenues in the Wood Product Manufacturing
subsector have not changed significantly
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
47
The decrease in GDP reported between 2001 and
2010 represented a compound annual rate of 0.8%
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
48
Canada Exports mostly to US, but exports to China are
growing at a fast rate
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
49
Most of the exports happen out of the province of
British Columbia
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
50
Minerals and Metals Sector
Introduction
51
Canada is one of the leading mining nations in the
world
•
Canada is one of the leading mining nations in the world, producing
more than 60 minerals and metals
•
In 2009, more than 220 principal producing mines (metal, non-metals
and coal mines), more than 3000 stone quarries and sand and gravel
pits, and about 50 non-ferrous smelters and refineries and steel mills
were operating in Canada
•
Canada’s estimated mineral production in 2009 was $32.2 billion
•
Nearly 80 percent of the total was accounted for by Ontario (19.7
percent), Quebec (19.3 percent), British Columbia (17.8 percent),
Saskatchewan (15.6 percent) and Newfoundland and Labrador (7.1
percent
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
52
Minerals and Metals Sector
Industry Performance
53
Mining and mineral-processing industries generated
2.7 %of the Canadian GDP
•
•
•
•
•
Mining and mineral-processing industries generated 2.7 percent of the
national GDP and contributed $31.9 billion to the Canadian economy
Exploration and deposit appraisal expenditures were $1.9 billion, and
spending intentions for 2010 indicate an increase to $2.8 billion
Capital investment spending in the mining and mineral processing
industries were $9.8 billion in 2009. Spending intentions for 2010 are
expected to reach $11.9 billion
Gold was the top metallic mineral produced in Canada, with
shipments valued at $3.7 billion, followed by iron ore at $3.2 billion and
aluminum at $3.0 billion
The leading non-metallic minerals were potash, which had a value of
$3.4 billion; diamonds, at $1.7 billion; and sand and gravel, at $1.5
billion. Coal was the top mineral produced in Canada, with shipments
valued at $4.5 billion
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
54
In 2009, Canada exported minerals and metals worth
over $66 billion ($49 billion in metals, $12 billion in
nonmetals, and $5 billion in coal), accounting for 18%
of Canada’s total exports
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
55
Value of Metallic mineral production is higher in
Canada
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
56
Production of Canada’s Leading Minerals
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
57
Production of Canada’s Leading Minerals
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
58
Minerals and Metals Sector
Employment
59
The Mining and Mineral processing sector provides
direct employment to 2.1 % of Canadian work force
•
In 2009, total direct employment in the mining and mineral
processing industries – 307 000 people – accounted for 2.1 percent
of Canada’s total employment.
•
Approximately 51 000 people were employed in mining, 59 000
people were employed in smelting and refining, and 197 000 people
were employed in the mineral-processing and manufacturing
industries
•
Wages and salaries remained competitive in mining and mineralprocessing industries, with 2009 average weekly earnings at $1,056
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
60
The mining and mineral processing sector provides
direct employment to 2.1 % of Canadian work force
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
61
Minerals and Metals Sector
Trade
62
Canada is one of the world’s leading exporters of
minerals and mineral products
•
•
•
•
•
C
ƒ anada is one of the world’s leading exporters of minerals and
mineral products. These products make a significant contribution to
Canada’s international trade, accounting for 19.2 percent of
Canada’s domestic exports in 2009
Canada continues to be the world’s leader in the production (by
volume) of potash, and it ranks in the top five countries for the
production of primary aluminum, cobalt, molybdenum, nickel,
platinum group metals, salt, titanium concentrate, uranium and zinc
Canada ranks second in the world in value of diamond production
Canada continues to be the third-largest producer of primary
aluminum in the world
Mineral and metals products (including coal) accounted for almost 35
percent of coastwise shipping and more than 52 percent of
international shipping in 2007
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
63
Canada is one of the world’s leading exporters of
minerals and mineral products
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
64
Mining and Quarrying subsector
Introduction
65
Ontario has the highest number of Mining, Quarrying
and Extraction establishments
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
66
The percentage of small and medium-sized businesses
that were profitable in the Mining and Quarrying
(except Oil and Gas) subsector in 2008 was 78.0%,
with 22.0% of firms failing to turn a profit
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
67
Mining and Quarrying subsector
Industry Performance
68
Products are predominantly exported to US from the
year 2009 prior to that it was the UK
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
69
Most of the exports happen out of the province of
Ontario
SECTOR
FOREST
Source: Canadian Industry Statistics
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
70
Energy sector
Introduction
71
Canada produces large quantities of energy for both
domestic consumption and export
•
•
•
•
Canada has a vast and diversified portfolio of energy resources
Taking advantage of this endowment, Canada produces large
quantities of energy for both domestic consumption and export
In 2009, Canada’s production of “primary” energy – i.e. energy found
in nature before conversion or transformation – totaled 16,543
petajoules (PJ). Fossil fuels accounted for the greatest share of this
production, with crude oil representing 36.8 percent; natural gas, 37.7
percent; and coal, 8.2 percent
Renewable energy sources were also important, with hydroelectricity
representing 7.9 percent; wood, 3.4 percent; and emerging forms
(e.g. wind, tidal and solar), 0.1 percent. Nuclear energy (generated
from the primary source of uranium) accounted for 5.9 percent
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
72
Canada has the second largest oil resource base
second only to Saudi Arabia
•
•
•
•
•
Crude oil reserves at the beginning of 2009 were estimated at 27.8 billion
cubic metres (bcm) – providing Canada with a resource base second
only to Saudi Arabia
Oil sands represented the majority of these reserves with 27.0 bcm, while
conventional sources amounted to 0.8 bcm. The ultimate recoverable
potential from the Alberta oil sands is estimated to be more than 50.0 bcm
Production of crude oil in Canada totalled 158 million cubic meter, or
433.1 thousand cubic meter per day, in 2009
Conventional sources provided 51.0 percent of total production, while oil
sands production, which has been growing in recent years, accounted for
the remainder
About two thirds of crude oil production is exported, while the balance is
processed by Canadian refineries into refined petroleum products, such
as gasoline, diesel and heating oil
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
73
95% of the Natural gas is from Conventional sources
•
•
•
N
ƒ atural gas reserves at the beginning of 2009 totaled 1,754 bcm. Of
this amount, about 95 percent is from conventional sources, and the
remainder is from unconventional sources (such as coal bed methane
and shale gas)
The total potential from conventional resources is estimated to be 10.1
trillion cubic metres (tcm), while recent estimates suggest that the
potential from unconventional resources is in the range of 10.7 to 26.8
tcm
Marketable production of natural gas in Canada amounted to 147.5
bcm in 2009. Close to two thirds of this production was exported to
the United States (U.S.), and the balance was sold to Canadian
consumers
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
74
Hydroelectricity represented 60.4 percent of total
generation in Canada
•
•
•
•
•
Electricity generation in Canada amounted to 585 terawatt hours in 2009
Canada’s abundant water resources provided a significant contribution in
this regard, as hydroelectricity represented 60.4 percent of total
generation. Other sources of electricity supply included coal (16.9 percent);
nuclear (14.6 percent); petroleum products, natural gas and waste (7.5
percent); and emerging renewable sources (0.6 percent), i.e. solar, wind
and tidal
Quebec accounted for 33 percent of that amount (97 percent from hydro),
and Ontario accounted for 25 percent (56 percent from nuclear sources)
On a regional basis, Alberta accounted for 64 percent of Canada’s energy
production. Other leading energy provinces were British Columbia (13
percent), Saskatchewan (7 percent), Quebec (5 percent) and Ontario (3
percent)
Alberta is the leading producer of fossil fuels, Quebec is the largest
producer of hydroelectricity, and Ontario is the largest producer of nuclear
energy
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
75
Energy sector
Industry Performance
76
Energy sector accounts for 6.7 percent of Canadian
GDP
•
•
•
•
•
In 2009, the GDP of Canada’s energy sector – i.e. industries involved in the
production, transformation and transportation of energy – reached $80.2
billion (in 2002 constant dollars), accounting for 6.7 percent of Canadian
GDP
In 2009, new capital investments in energy-related industries represented
20.1 percent of Canadian investments
The oil and gas extraction industry accounted for about half of this
amount, while the electric power industry accounted for about one third
The energy sector, excluding service stations and wholesale trade in
petroleum products, provided direct employment for 257 462 people in
2009, or 1.8 percent of employment in Canada. In addition, service
stations and wholesale trade in petroleum products provided direct
employment for 96 199 people (0.7 percent)
In 2009, energy accounted for 21.6 percent of merchandise exports. The
energy trade balance ranked first as a contributor to Canada's positive
overall trade balance
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
77
US is Canada’s biggest market for energy products
•
•
•
•
ƒ anada is an open economy, and taking advantage of its sizeable
C
energy resources, it has become an important and reliable energy
provider to the world. In 2009, Canada exported $77.9 billion of energy
products, of which 97 percent was to the United States
Exports of crude oil amounted to 109.2 million m3 in 2009, representing a
value of $42.9 billion. Canadian crude oil accounted for 21 percent of U.S.
crude imports and held a 15 percent share of the overall U.S. market.
Exports of refined petroleum products in 2009 totaled 24.4 million cubic
meter, or $14.2 billion
Canada exported 93.8 bcm of natural gas, all of it to the United States.
The value of these exports was $16.0 billion. Canadian natural gas
accounted for more than 87 percent of U.S. gas imports and held a 13
percent share of the overall U.S. market
Canada also imported $34.0 billion of energy products, mostly crude oil,
refined petroleum products and natural gas
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
78
US is Canada’s biggest market for energy products
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
79
Crude Oil, Natural Gas and Petroleum
80
Production and Demand for Crude Oil and Natural
Gas depends upon how well the economy is doing
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
81
Crude Oil
82
Canada is a leading oil producer in the world
•
•
•
•
•
•
Canada is the 6th largest oil producer in the world, and a price taker in a
global oil market
Canadian crude oil is sold both domestically and in the US market at the
world price
Despite the fact that Canada is a major net exporter of crude oil,
refineries in Atlantic Canada and central Canada continue to import
crude from producers overseas
This occurs because of the low cost of moving crude oil by ship, and the
relatively high cost of pipelining crude oil across Canada
Some of the crude imported is re-exported to the US in the form of refined
petroleum products
Canada consumes far less crude oil than it produces, and this situation is
likely to continue into the foreseeable future. In 2009, Canada recorded a
huge net surplus of more than 840 thousand barrels per day (kb/d). Nearly
all crude oil exported from Canada was to the US market
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
83
Between 2000 and 2009, Canadian demand for crude
oil ranged from 1.7 to 1.85 million barrels per day
(mb/d). Canadian demand for crude oil peaked in
2007, at 1.85 mb/d
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
84
Canadian crude oil production for the 1995 to 2009
period is growing quickly
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
85
The August 2009 merger between Suncor Energy and
Petro-Canada created Canada’s largest energy
company
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
86
Canada accounts for about 12% of the world’s
proved oil reserves, and 97% of Canadian
reserves are in the form of oil sands
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
87
The East Coast offshore areas represent about 31% of
conventional oil reserves. Canada’s remaining proved
conventional oil reserves are located in Ontario, the
Mackenzie/Beaufort Area and the Mainland Territories
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
88
Canadian oil imports by source for 2008 and 2009
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
89
The lower revenue figures are not a reflection of less
product being exported, but of the lower price of
Canadian crude oil in 2009 compared with 2008
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
90
Natural Gas
91
The Canadian natural gas market is affected by
market conditions in both Canada and the US
•
The Canadian natural gas market is part of a continental market, and
is affected by market conditions in both Canada and the US
•
In this market, natural gas flows seamlessly across borders via
extensive pipeline networks connecting supply basins to demand
centers
•
Regional prices, reflecting natural gas pipeline transportation costs,
are established within this market
•
Unlike crude oil, there is no global price for natural gas
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
92
Total North American demand for natural gas in
2009 was about 25.5 Tcf (trillion cubic feet) or
about 70 Bcf/d (billion cubic feet per day)
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
93
US production increased 5% largely on account of
surging shale gas production. Meanwhile, Canadian
production declined 4% owing to the maturing
Western Canada Sedimentary Basin (WCSB)
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
94
While there are hundreds of natural gas producers in
Canada, the top ten control 52% of production
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
95
US reserves are higher than Canadian Natural Gas
reserves. In 2008, Canada posted the largest net
reserve addition in over 25 years
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
96
The decline in export volume was the direct result of
falling Canadian natural gas production
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
97
Petroleum Products
98
Petroleum Products market
•
•
•
•
•
Canadian petroleum product prices are essentially set in a global
market
For example, Canadian wholesale gasoline prices are driven by US
benchmark prices, such as the New York Harbour price. These US
benchmark prices reflect the international crude oil price and such
factors as seasonal demand and inventory levels
Canadian wholesale prices must remain competitive with these US
benchmark prices
This is because if Canadian refiners’ prices (for products) are lower,
products will flow out of the country. If refiners’ prices are higher,
marketers will import lower priced products
The price of crude generally drives the prices of refined petroleum
products. Despite this, crude oil and petroleum product prices can, at
times, move in opposite directions
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
99
The demand for refined petroleum products
in Canada fluctuates along with seasonal demand
(e.g. increased demand for gasoline during the
summer, more heating oil used in winter)
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
100
Canada has four distinct supply/demand regions for
petroleum products: Atlantic Canada, Quebec, Ontario and
Western Canada. At times, product imports, exports and
interregional transfers play a significant role in balancing
supply and demand
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
101
As both imports and exports have increased over the
last decade, net exports remain relatively unchanged
when compared to 2000
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
102
Electric Power Generation, Transmission and
Distribution
103
Quebec is the largest producer of electric power in
Canada
•
•
•
•
•
•
In 2007, coal accounted for 76% of all the fuels consumed to generate
electricity in Canada and 35% of the cost of these fuels
Conversely, natural gas accounted for 14% of all fuels consumed in 2007 but
48% of the cost of fuels used
Alberta (45.2%), Ontario (26.1%), and Saskatchewan (14.3%) were the three
largest users of fuels for the production of electricity in Canada in 2007
Overall, Alberta used 52% of all coal and 36% of all the natural gas consumed
in Canada for the production of electricity, while Ontario consumed 24% and
34% respectively and Saskatchewan consumed 17% and 9% respectively
In 2007, Quebec was again the largest producer of electric power in Canada
generating 31.1% of all of Canada’s electric power and 49.7% of all hydroelectric power. Quebec used only 2.0% of total fuels consumed for other forms
of electricity production
Electricity generated by wind increased again in 2007, up 19.5% 2,925 GW.h
from 2,448 GW.h in 2006. This represents 0.5% of the total electricity generated
in Canada in 2007, up from 0.4% in 2006
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
104
Renewable Energy
105
Canada is a world leader in the production and use
of energy from renewable resources
•
•
•
•
•
Canada, with its large landmass and diversified geography, has
substantial renewable resources that can be used to produce energy;
these resources include moving water, biomass, and wind, solar,
geothermal and ocean energy
Canada is a world leader in the production and use of energy from
renewable resources. Renewable energy sources currently provide about
16% of Canada's total primary energy supply
Moving water is the most important renewable energy source in Canada,
providing about 59 percent of Canada's electricity. In fact, Canada is the
second largest producer of hydroelectricity in the world
Biomass is the second most important renewable energy source in
Canada. The primary types of bioenergy include electricity and industrial
heat from wood waste, space heating from firewood, and biofuels from
agricultural crops
While they are emerging sources, wind and solar energy are experiencing
high growth rates
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN, Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
106
Geomatics and Geoscience sector
Introduction
107
Geomatics and Geoscience provide a detailed
picture of the physical world
•
•
•
•
ƒ eomatics and geoscience are complementary earth sciences that
G
provide a detailed picture of the physical world and our place in it
Geomatics consists of products, services and tools involved in the
collection, integration and management of geographic data
Geographic information can be retrieved from various sources,
including earth-orbiting satellites, ground-based instruments and
airborne and seaborne sensors. These data are transformed into
digital maps and other usable forms with state-of-the-art information
technology
Geoscience includes geology, geophysics, geochemistry and
geodesy. It deals with all aspects of the physical earth, including
mineral and energy resources; hazards such as earthquakes, tsunamis,
landslides and space weather phenomena; and geological controls
on groundwater and climate
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
108
It is used in forest management and energy and
mineral exploration to environmental stewardship,
emergency management and monitoring of
Canada’s territory
•
•
•
Geographic information systems (GISs), global positioning systems
(GPSs), remote sensing, location-based services and technologies,
and Web-based services are growing rapidly, bringing modern
geomatics tools to the computers and cell phones of the average
citizen and small business
Industry, governments and the public rely on geomatics and
geoscience information and technologies for many purposes, ranging
from forest management and energy and mineral exploration to
environmental stewardship, emergency management and the
monitoring of Canada’s territory and borders
Canada’s resource-based economy depends on innovations in
geoscience for the life cycle of resource exploration, development
and rehabilitation. Modern geoscience has helped Canada become
a leading producer of diamonds
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
109
Geomatics and Geoscience sector
Industry Performance
110
Canada continues to be a world leader in
geoscience and geomatics applications and
technology
•
•
•
•
•
•
Canada is a world leader in the niche markets of remote sensing data and
applications, including mapping from space, sea-floor mapping and
hydrography
Canada is recognized internationally for developing customized GIS
applications for urban planning, agriculture, geo-marketing and natural
resources management
Major international markets for Canadian geomatics firms include North
America, the Middle East and Latin America
International demand for geomatics products and services will continue to
increase, stimulating the growth of the industry in the coming years
Canada continues to be a world leader in geoscience and geomatics
applications and technology, principally in minerals and energy
exploration and development
Canada provides much of the information, expertise and technology used
around the world for the responsible development of natural resources
SECTOR
FOREST
Source: Canada Natural Resources: 2009
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
111
Emerging Trends
112
Emerging Trends in the Forest Industry Sector
•
•
•
•
Industry transformation and a focus on innovation are leading to
improvements that will strengthen the competitiveness of Canada’s forest
sector in all areas
Market challenges have been faced head on, and new market opportunities
are being targeted. Work is underway to identify both new products from fibre
and new markets for Canada’s traditional products
Non-traditional products and services are the focus of intensive research and
development. Of particular note are those products and services derived from
forest biomass (for example, bioenergy, bioproducts and biochemicals).
Increased production of bioproducts is expected to give the industry a
significant boost in the highly competitive global marketplace
The importance of environmental sustainability has been recognized across
the forest sector by government, industry and other players. Sustainable forest
management practices at every stage of production demonstrate responsible
resource stewardship and respond to the expectations of the new “green
movement” reality of today’s global marketplace
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN – Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
113
Emerging Trends in the Metals and Minerals Sector
•
Looking ahead, the mining and mineral processing industries should
be an important source of economic growth in Canada
•
As a result of expected relatively stronger prices, mines are projected
to open, re-open or expand production in Canada in 2010
•
Export Development Canada forecasted that Canada’s exports of
ores and metals should rise by 10% in 2010
•
According to a study by Informetrica, the mining and mineral
processing industries are forecast to grow by 6.4% y/y over the period
2010-13, which is double the expected growth rate of the total
economy
SECTOR
FOREST
MINERALS/
METALS
Source: NRCAN – Natural Resources Canada
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
114
Canada’s conventional crude oil production will
decline over time, and oil sands production will
progressively make up a larger share of production
SECTOR
FOREST
Source: Trendwatch Series, 2010
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
115
All forecasts point to declining production of Natural
Gas in the coming years but recovering over the long
term
SECTOR
FOREST
Source: Trendwatch Series, 2010
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
116
China has drawn on its large foreign currency reserves
and cash to acquire stakes in Canadian-traded
natural resource companies
•
•
•
In April 2010, the state-owned enterprise China Petroleum & Chemical
Corporation (more commonly known as Sinopec), one of the largest
integrated energy and chemical companies in China, offered to
acquire from ConocoPhillips Company its 9 per cent stake in Alberta
oil sands producer, Syncrude Canada Ltd. for US$4.65 billion
This followed PetroChina’s August 2009 agreement to buy a 60 per
cent stake in two oil sands properties held by Athabasca Oil Sands
Corp. for $1.9 billion, and preceded the $817-million acquisition by
China Investment Corp. (CIC) of a 45 per cent stake in an oil sands
project held by Penn West Energy Trust, and a concurrent $435-million
investment for a 5 per cent stake of Penn West
CIC had already made its mark in the Canadian mining sector earlier
this year when it acquired a 17 per cent interest in B-class shares of
Teck Resources Limited for $1.74 billion
SECTOR
FOREST
Source: Trendwatch Series, 2010
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
117
China has drawn on its large foreign currency reserves
and cash to acquire stakes in Canadian-traded
natural resource companies
Other significant transactions include:
• The signing of a memorandum of understanding between TSX-listed
Quadra Mining Ltd. and a subsidiary of State Grid Corporation of
China, the largest Chinese utility company and a major end user of
copper, to form a joint venture with respect to two of Quadra’s
properties which represent $900 million in assets
• The offer by Jinchuan Group Ltd., China’s largest producer of nickel,
cobalt and platinum, to acquire all common shares of Crowflight
Minerals Inc., a Canadian junior nickel producer, for $150 million
• The successful joint takeover bid by China’s Jilin Jien Nickel Industry
Co., Ltd. and Goldbrook Ventures Inc. of the junior nickel explorer
Canadian Royalties Inc. This was the first hostile takeover bid by a
Chinese company in Canada
SECTOR
FOREST
Source: Trendwatch Series, 2010
MINERALS/
METALS
ENERGY
GEOMATICS &
GEOSCIENCES
EMERGING
TRENDS
118