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Canadian refined petroleum products dominate fuel mix

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Hydrocarbon Engineering,

The National Energy Board (NEB) has released its newest report, ‘Canada’s Energy Future 2016: Province and Territory Outlooks’. Production of oil and gas in the Northwest Territories is expected to decline through 2040, with future discoveries and developments remaining a key uncertainty to energy supply and demand going forward. Diesel-fired generators remain the main source of electricity supply for most communities. The report highlights the diversity of energy/electricity sources across Canada for both the production and consumption of energy, including crude oil, hydro, natural gas and solar power resources.

In Yukon, projected energy use is the most volatile in Canada because of the mining sector. The fuel mix remains the most diverse of the three northern territories, adding more capacity through biomass, geothermal, hydro, wind and natural gas.

Nunavut’s energy demand increases moderately between now and 2040, with industrial demand growth driven by the mining sector. Refined petroleum products continue to dominate the fuel mix.

The report does not include the recent key climate change policy announcement made by various provinces as well as the federal government. An update to the national Energy Futures report will include an examination of these future policies and will be released later this year.

Report facts

  • The ‘Canada’s Energy Future 2016: Province and Territory Outlooks’ report is the first time the NEB has published detailed information comparing and contrasting long term energy outlooks across the provinces and territories.
  • The type of energy used to generate electricity varies substantially between Canadian provinces and territories, based largely on their accessibility to resources and historical infrastructure development.
  • For provinces with significant crude oil and natural gas production, prices, market fluctuations and infrastructure issues are all key determinants for future outlook.
  • The types of energy consumed by Canadians varies widely across the country, due to the availability and pricing of different energy types. For example, provinces with large hydroelectric infrastructure like Quebec and Newfoundland & Labrador tend to use more electricity relative to Western provinces where natural gas is used in greater quantities. In the North, petroleum products like fuel oil and diesel are used more.
  • The NEB consulted Canadian experts including environmental organisations, academics, provincial and territorial governments, industry and industry associations as the report was developed.

“Canada’s energy production and consumption picture is as vast and diverse as the country itself. Recognising this diversity will be critical as we deal with current energy market uncertainties and begin to implement the policies and technologies that will transform Canada to a low carbon future. The projections in this report serve as an important baseline for those discussions,” said Shelley Milutinovic, Chief Economist, National Energy Board.

Adapted from press release by Rosalie Starling

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