“Canada’s North is rapidly evolving, changing and positioning itself as a key economic leader of tomorrow. We’re poised for great things. Global economics are changing, new markets are growing - and the international focus is shifting North...” Premier Floyd Roland, Sept. 30, 2011 – Anchorage, Alaska
Premier Floyd Roland's address from a Panel Discussion: "Northwest Energy Resources in a Global Market" in Anchorage Alaska for the Energy Council general meeting. The Energy Council is a Dallas-based group comprised of representatives from 11 other energy-producing states, as well as five Canadian provinces and the South American nation of Venezuela.
(CAD)
I appreciate the opportunity to be a part of this panel this morning.
The subject of this discussion is one of particular interest to the Government and people of Canada’s Northwest Territories.
It is only recently that we have become recognized for our world-class inventory of energy resources.
In part, it explains why we are experiencing a renewed interest in the Arctic and in Canada’s North.
It is our view the world is only now realizing what we have always known to be true; that the Arctic holds a special and strategic place in the world – politically, environmentally and especially economically.
Certainly a lot of that has to do with our general resource base... and our energy resources in particular.
Our Territory is a natural extension of the economic powerhouse that is western Canada. We are a proud member of the Pacific North West Economic Region – and share the competitive advantage of natural resources.
The first discovery of hydrocarbons occurred in our Territory when Imperial Oil found the Norman Wells oilfield in the 1920s. To date, 1.2 billion barrels of oil have been discovered. The ultimate recoverable petroleum potential of our Territory has been estimated at over 81 trillion cubic feet of natural gas and nearly 7 billion barrels of oil.
Based on geological analysis by both the U.S. Geological Survey and our own advisors, the Arctic waters off the Northwest Territories have the oil potential to rival the Gulf of Mexico.
Our mines and mineral resources are also vast.
In the last decade, we have become better known for our diamond mines. Today, our three operating mines produce 15 percent of the world’s rough diamonds.
Within our borders, we also have an abundance of economically valuable metals, including: uranium, tungsten, lead, silver and zinc.
For a territory of only 42,000 people, we’ve made some remarkable potential.
And there is more to come...
Our rich and diversified resource base offers amazing opportunities for economic growth over the long term - an incredible competitive advantage in a world whose demand for resources, is increasing.
In addition to well-established “western” economies, we have emerging nations that are pursuing aggressive growth - positioning themselves as the “world’s factories” for consumer goods and textiles.
We have gone through a drastic global downturn. Although it will be a slow, gradual recovery, there will be a demand for resources - metals and minerals - but especially energy.
This demand is only going to increase. Estimates suggest the world’s population will rise to about 9.3 billion people by 2050.
And let’s face it, there are fewer and fewer places left to find those resources.
While the global demand for energy is rising – so too is the ever-increasing output of greenhouse gas emissions produced by our traditional methods of energy generation.
So much so, that in the past few years, the issue of Climate Change has also become an area of unprecedented national and international interest and concern.
As Northerners, we know all about it. We are the proverbial canary in the coal mine. Our geographic location has made us first-hand witnesses to the impacts of climate change.
We see it daily. We live with it...
And we have not missed the irony: that while, we must deal with changing seasons, rising temperatures and the reality of a melting Arctic ice cap, our untapped energy potential includes resources that could help us.
In fact they could help Canada, North America - and the world - achieve better environmental performance.
There is tremendous opportunity for our Territory to provide clean, renewable energy to communities and industry and potentially to other regions of Canada.
I would like to highlight two of these energy resources to you today...
The first is Hydro Electricity
The NWT has over 11,000 megawatts (MW) of hydroelectric potential, the vast majority of which is yet been developed.
Preliminary studies show we could generate electricity on the scale of James Bay or Churchill Falls using modern run-of-river technology that will limit environmental impacts. A relatively minor expansion of 56 megawatts of one of our facilities – the Taltson Hydro Generating Station would be the equivalent of replacing 114 million litres of diesel while removing 320 kilotonnes of greenhouse gas emissions annually.
The development of the Northwest Territories’ hydroelectric resources can and will provide a lasting legacy of clean, renewable power for the future - displacing imported fossil fuels and driving economic development through the provision of stable, affordable electricity.
Connecting our hydro with the broader electric grid will create a new sustainable power supply for export to our Canadian and American neighbours - energy we all need - and in a form that will help to reduce greenhouse gas emissions.
The second energy resource is natural gas.
Canada's Arctic contains one-fifth of the world’s untapped oil and gas.
A 2008 US Geological survey estimated the untapped potential of gas hydrates in the Arctic Ocean to be greater than all of the conventional oil, gas and coal reserves in the world.
The Canadian federal government has stated an objective of generating 90 per cent of Canada’s electricity from non-emitting energy sources by 2020...
President Obama has echoed that saying he wants Americans to be using non-oil energy sources for 80 percent of its electricity use by 2035.
To this day, the global impact of Hurricane Katrina’s devastation of New Orleans and the Gulf Oil disaster underscore our critical need for secure and dependable energy to power our every-day lives and our economies.
The marine transportation industry will be looking for alternative fuel sources within the 200-mile Exclusive Economic Zone by August next year when the EPA significantly tightens emissions standards.
Offshore resources are increasingly unreliable. Conventional basins are depleting.
This month we have witnessed political unrest on both sides of the 49th parallel – protesting the proposed expansion of the Alberta tar sands - and the proposed construction of the keystone pipeline.
People are concerned about the impact of energy use on the environment. They want to be sure their environment is protected. They want their air, water and land to be clean.
Part of the solution to this energy crisis is Arctic Natural Gas.
- Which if we can get to market - can help to meet the rising continental demand for energy.
- Which through a network of continental pipelines - will provide a secure, ready supply of energy for North American markets.
- It will add significant new volumes to the continent’s supply and work to lower the cost of gas to industrial and residential consumers in Canada and the US; and
- Arctic Natural Gas – that will help to slow the ever-increasing growth in greenhouse gas emissions from coal-fired electrical generation plants, and play a key role in reducing climate change.
Through the energy provisions of NAFTA - and a variety of inter-governmental agreements - Canada and the United States already enjoy a fully integrated energy market.
If all goes well, Canada’s Mackenzie Gas Project, with its proven reserves and 1100 mile pipeline along the Mackenzie Valley will be the first secure link to a solution for this energy crisis.
Our pipeline, and immediately following it - the Alaska Gas Pipeline are two phases of a single-minded objective that will secure the stable energy supply that is so desperately sought by the continental market.
Our line will link with existing Canadian pipeline systems in Alberta to create a virtual energy corridor from our back yard to Chicago, Illinois – It will open the door to a new era for the Northwest Territories economy and its people.
This will be one of the largest infrastructure projects ever built in Canada.
In light of the lingering downturn in our economy, the costs of constructing the Mackenzie Gas Project have fallen. Building now - while prices are soft - will line up the project’s completion with the full recovery of natural gas prices.
We can build low and sell high.
In these times - what better single effective economic stimulus project can there be?
The advancement of our Mackenzie Gas Project will provide lasting, enduring value to our country - $86.3 billion to the national economy.
It will provide incredible benefits across the country. Businesses and industries in other parts of the country will be called upon to supply material and services...meaning jobs and business opportunities for Canadians.
In total, building this Pipeline will create over 208,000 person-years of employment.
Talk about an economic shot in the arm for Canada.
And once finished, it will strategically position our country as never before. It will open up the North and make more exploration possible. It will spin off incredible economic activity, assisting all sectors. It will cement our position as an international resource producer. And it will assert our sovereignty over Arctic lands and resources in a real and tangible way.
Ladies and Gentlemen – it is always hard for me to convey the full extent on my Territory’s potential in the short time that is provided at events and conferences such as this.
In addition to hydro and natural gas:
the Northwest Territories is home to 12 per cent of Canada’s productive forested lands – the foundation of our emerging biomass industry.
The geothermal potential of our land is said to be immense.
Wind and solar energy is another important part of our long-term energy supply. Seasonally, we have plenty of both.
And, in recent years, we have advanced our development of rare earth metals – a key element in the creation of alternative energy products such as solar panels, rechargeable batteries, fuel cells and electric cars. All the stuff you need for a greener economy.
Let me leave with this thought.
Canada’s Northwest Territories is one of the world’s last stable and relatively untapped warehouses of energy in the world.
Moreover, the North’s development opportunities fit hand in glove with North America’s energy, environment and security objectives.
When you factor in the scale of resources in the Mackenzie Delta and the Beaufort Sea... and that the Mackenzie River offers a corridor linking the resources of Alberta, the resources of the NWT and the Arctic Ocean... you can easily see how the NWT is poised to be at the crossroads of some major trade flows.
The North is one of the last frontiers of Energy exploration and potential. And the prize is huge.
We’re eager to join in shaping a bold future in clean energy - a future in which our country plays a central role in the global economy and welcomes investment from around the world.
Canada’s North is rapidly evolving, changing and positioning itself as a key economic leader of tomorrow. We’re poised for great things. Global economics are changing, new markets are growing - and the international focus is shifting north.
By coming to Anchorage, and seeing how the energy resources have benefitted this state, it is easy to see why we are optimistic for our future.
Thank You