Search for "natural gas"

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Natural Gas in Canada

Natural gas ranks among the fastest-growing energy sources in Canada and is seen by many in the energy industry as a game-changer, a comparatively clean, low-cost and versatile fuel. It can directly generate power and heat and can be chemically altered to produce a wide range of useful commodity chemicals. It burns cleaner and more efficiently than other fossil fuels, releasing significantly fewer harmful pollutants into the atmosphere. Natural gas is colorless, odourless, shapeless, lighter than air and contains a mixture of several hydrocarbon gases, which are organic compounds consisting of some combination of hydrogen and carbon molecules.

The primary consumers of natural gas are the industrial (54.1 per cent), residential (26.6 per cent) and commercial sectors (19.3 per cent). Canada is the fifth largest natural gas producer after the United States, Russia, Iran and Qatar. Currently, all of Canada’s natural gas exports go to the United States through a network of pipelines, making Canada the largest foreign source of US natural gas imports. At the end of 2016, Canada had 76.7 trillion cubic feet of proven natural gas reserves and had produced 152 billion cubic metres of natural gas that year. It is forecasted that global natural gas consumption will double by 2035.

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Pipelines in Canada

Pipelines are systems of connected pipes used to transport liquids and gases — namely oil and natural gas — across long distances from source to market. More than 840,000 km of pipelines criss-cross the country, part of a larger oil and gas sector that employs between 100,000 and 200,000 Canadians. According to Natural Resources Canada, the sector earns the government an average of $19 billion in royalties, fees and taxes each year. It also contributes nearly 8 per cent of Canada’s gross domestic product.

Yet pipelines have also been controversial in Canada over fears that the fossil fuel use they facilitate could be significantly contributing to climate change. In recent years, Indigenous groups, environmentalists, municipalities, mayors and labour unions have opposed numerous pipeline projects they believe could contaminate local waterways through spills and leaks.

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National Energy Program

The National Energy Program (NEP) was an energy policy of the government of Canada from 1980 through 1985. Its goal was to ensure that Canada could supply its own oil and gas needs by 1990. The NEP was initially popular with consumers and as a symbol of Canadian economic nationalism. However, private industry and some provincial governments opposed it.

A federal-provincial deal resolved controversial parts of the NEP in 1981. Starting the next year, however, the program was dismantled in phases. Global economic conditions had changed such that the NEP was no longer considered necessary or useful. The development of the oil sands and offshore drilling, as well as the rise in Western alienation and the development of the modern Conservative Party of Canada, are all aspects of the NEP’s complicated legacy.

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TC Energy (formerly TransCanada)

TC Energy Corporation (formerly TransCanada Corporation) is a natural gas, oil and power-generation company headquartered in Calgary, Alberta. TC Energy owns more than 92,600 km of natural gas pipeline in North America and transports more than 25 per cent of the gas consumed on the continent. It also operates power plants and gas storage facilities. A public company, it trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbol TRP. In 2018, TC Energy registered $13.7 billion in revenue and $3.5 billion in profit and held $98.9 billion in assets. The company employs about 7,300 people, more than half of them in Canada.

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Mining

Mining is one of Canada’s primary industries and involves the extraction, refining, and/or processing of economically valuable rocks and minerals.

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Mineral Resources

Minerals are naturally-occurring, homogeneous geological formations. Unlike fossil fuels, such as coal, oil and natural gas, minerals are inorganic compounds, meaning they are not formed of animal or plant matter.

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Hydroelectricity in Canada

Hydroelectricity is energy produced from flowing water. The amount of energy produced depends on volume and speed: the more water moving at a fast rate, the more energy produced. For this reason, many hydroelectric stations are built near waterfalls. To produce energy, water is directed toward turbines — sometimes with the help of a dam — causing them to spin. In turn, the turbines make electrical generators spin and electricity is produced. It is a renewable, comparatively nonpolluting energy source and Canada’s largest source of electric-power generation.

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Northern Gateway Pipeline Proposal

The $7.9 billion Northern Gateway project was a pipeline proposal that Enbridge put forward in 2008. Northern Gateway would have carried diluted bitumen (“dilbit”) about 1,170 km from Bruderheim, Alberta to a terminal on the Pacific Ocean at KitimatBritish Columbia. Enbridge claimed that the project would create $1.2 billion in tax revenue for BC, as well as 560 jobs. The Federal Court of Appeal overturned the pipeline’s approval in 2016. That same year, the Liberal government of Prime Minister Justin Trudeau rejected the project.

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Commodities in Canada

In commerce, commodities are interchangeable goods or services. Many natural resources in Canada are viewed as commodities. They are a major source of the country’s wealth. Examples of commodities include a barrel of crude oil, an ounce of gold, or a contract to clear snow during the winter. Commodity products often supply the production of other goods or services. Many are widely traded in futures exchanges (see Commodity Trading).

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Sustainability in Canada

Sustainability is the ability of the biosphere, or of a certain resource or practice, to persist in a state of balance over the long term. The concept of sustainability also includes things humans can do to preserve such a balance. Sustainable development, for instance, pairs such actions with growth. It aims to meet the needs of the present while ensuring that future people will be able to meet their needs.

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Solar Energy

The energy contained in sunlight is the source of life on Earth. Humans can harness it to generate power for our activities without producing harmful pollutants. There are many methods of converting solar energy into more readily usable forms of energy such as heat or electricity. The technologies we use to convert solar energy have a relatively small impact on the environment. However, they each have disadvantages that have kept them from being widely adopted.

In Canada, the use of solar energy to generate electricity and heat is growing quickly and is helping reduce pollution related to energy production. Despite Canada’s cold climate and high latitudes (which get less direct sunlight than mid-latitudes), solar power technologies are used in many places, from household rooftops to large power plants. The Canada Energy Regulator (formerly the National Energy Board) expects solar power to make up 3 per cent of Canada’s total electricity generation capacity by 2040.

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Trans Mountain Pipeline Expansion Project

The Trans Mountain Expansion is a project to build about 980 km of new pipe, most of which will run parallel to the existing Trans Mountain oil pipeline. The new line will carry diluted bitumen, or “dilbit,” from Edmonton, Alberta to Burnaby, British Columbia. The expansion will increase the pipeline route’s overall capacity from 300,000 barrels per day to 890,000 barrels per day.

The project’s first owner, Kinder Morgan Canada, sold it to the Government of Canada in 2018. The Trans Mountain Expansion has been a focus of environmental and economic debates, as well as political conflicts. The $12.6 billion project is now under construction.