Energy

By: Kevin, Tamir, and Arnie

Introduction

• Canada is one of the largest or second largest per capita users of energy in the world for the following reasons.

• we live in northern climate with cold temp for most of the year.

• industrial economy uses a great deal of energy• energy is cheap in Canada

How is energy used

• Industrial = 30%Transportation = 29%residential = 18%commercial = 18%agriculture = 3%public administration = 2%

Types of industries

• Canada’s Coal • Oil and gas– The Creation of Oil and gas– Searching for Oil and Gas– Recovering Oil and Gas– Sources of Canada’s Oil and Gas

• Electricity – Hydroelectrity – Thermoelectricity – Nuclear Electricity

Types of industries

Coal• Types of coal :• Anthracite coal- formed under great pressure. It is shiny and hard,

rich in carbon,clean burning, and used mainly for commercial and residential heating

• bituminous coal- formed under less pressure than anthracite. Softer and with more imourities, burns with a smoky flame. It is used as fuel for plants, but substantial amounts are used for heating and for fuel in manufacturing industries.

• Coke is known as metallurgical coal because it is used in the production of metals.

• Lignite coal- formed near the surface of earth where the pressure of the overlying sediments was relatively low. Often called brown coal, lignite is soft, inexpensive =, and filed with impurities.

Types of industries

• Canada's coal industry• Most of Canada’s coal is mined in British

Columbia, Alberta and Saskatchewan • Coal industry contributes about $4.5 billion to

the GDP and provides +55,000 jobs• Most of coal mined is now exported to major

steel producers

The Mackenzie Gas Project• About 2.5 trillion cubic meters of natural gas (about 20% of Canada’s

reserves) in the Mackenzie River Delta and Beaufort Sea area• In 1970s, a pipeline idea was proposed to carry natural gas from the

delta and Beaufort Sea area, to go down through the Mackenzie River Valley– It was not built

• 2001 – Imperial Oil, ConocoPhillips Canada, Shell Canada, ExxonMobil Canada and the Aboriginal Pipeline Group (APG) proposed the Mackenzie Gas Project – TransCanada Pipeline joined the groups in 2003

• Mackenzie Valley Pipeline (MVP) would move natural gas 1400 Km from natural gas fields in the delta and Beaufort Sea are to Northern Alberta

The Mackenzie Gas Project Con’t

• Project would cost about $7 billion and it would need 1300 workers

• Not all Aboriginal Peoples support the project. They think that they are “selling out” their traditional values, and by sending so many workers could cause social problems

• In 2006-2007, the National Energy board held public hearings, but they did not come to any agreements with APG

• The companies believed that communities along the pipeline had demands that were too high. So, the project was delayed and expected to be built in 2010/2011

Types of Electricity• Hydroelectricity• Advantages• No fuel to buy = cheap plants• No air pollution or CO2 produced because no burning of fossil fuels• Uses renewable resource (flowing water)• If there I a reservoir, it can be used for recreational activities • Disadvantages• Since Plants are costly to build• suitable sites are far from locations that need electricity, costly transmission lines must

be built• All large sites near population centres are developed• Flooding dams destroy environment or local areas• Flooding could cause dangerous chemicals to be released from rocks under the reservoir• The changed seasonal pattern of water flow of the river below the dam may affect the

ecology and animal habitats

Electricity Cont’d• Thermoelectricity• Steam produced by burning coal, oil, natural gas, wood or garbage powers the

turbines in the thermo-electric generating station• Advantages • Able to be placed near population centres where electricity is needed, lowering the

distance and costs for transmission lines• Plants can be built near fuel available locations, making fuel transportation

cheaper, and production cost of electricity lower• Plants are cheaper to build than HGS or NEGS • Disadvantages • Fuel costs are high and increasing• Non-renewable resources (oil, coal, natural gas) will run out• Coal-burning thermal-electric plants produce a lot of air pollution, and the burning

of fuels contributes to global warming• Coal and oil produce the gases responsible for acid rain

Electricity Cont’d

• Nuclear Electricity• Nuclear-electric plants also run on steam, but it is produced by fission (breakdown)

of radioactive uranium atoms. Boiling water creates the steam to turn the turbines• Advantages• Transmission costs are low because plants can be placed where energy is needed• Operating costs are relatively low, especially in beginning of operations• Canada has a good supply or uranium • Plants don’t produce pollution or CO2 • Disadvantages• Construction costs are high• Radioactive fuel is harmful to human health and must be cared for with great care• No permanent solution has been developed for disposing waste products, so they

have been hazardous for 100,000 years• Old reactors are unreliable, so plants must be renewed or replaced for huge costs

Electrical Production

• In different parts of Canada, a wide variation of electrical generation is used

• Ontario uses a large amount of energy generated by the three types of plants

• There are no more large undeveloped hydroelectric sites in Ontario– To fulfill demands for more electricity in the future,

thermal-electric or nuclear-electric plants will have to be built, or we’ll even have to import energy from other provinces, or build other types of generators (eg. Wind power)

Getting Electricity To The Market

• Generating stations direct energy to power grids, which transmits the electricity to cities, towns, large industries, etc.

• Provincial and state grids are linked within north America, so electricity can be transferred to other province or even the United States

• Electricity is one of Canada’s greatest exports• Independence of Canadian and American power grids

was on August 14, 2004, when a power station in Ohio failed and wiped out the energy in northeastern U.S. and southeastern Canada

The Business of Energy

• The Business of Energy• In 2003, energy system (major part of Canada’s economy)

were responsible for 6% of GDP and provided 230,000 jobs• Investments in energy projects totalled to 16% of all of

Canada’s investments• Canada has been a net exporter of energy since 1969

– More than 90% goes to U.S.– Canada exports the 4 major types of energy

• Natural gas• Oil• Coal• Electricity

Trade in Electricity

• Canada and the U.S. “trade” electricity together often, Canada sells electricity to the us in the summer for air conditioning and u.s sells electricity to Canada in the winter for heating. All of this is done by high voltage transmission lines

Trade in Natural Gas

• The main way to bring natural gas from one place to another in great amount is by underground pipelines. There is a big pipeline built for Canada to U.S or vis versa. It was built in Alberta, B.C, and Saskatchewan to U.S.

Trade & Trends• Trade in oil• Crude oil is an export and import in many countries. It is usually carried by

supertankers; as a result Canada has a lot of imported oil. Canada and U.S do have a pipeline for crude oil.

• Emerging trends• Supertankers might have a bigger role because china wants to buy Canadian oil.• Canada is relying less on imported oil due to oil resources off the east coast of

Canada.• Looking toward the future• Our affluent country depends on energy resources, but these are not

renewable resources and will run out. We have to understand that we have to use our sources properly to last us in the future. One more thing we have to do is find renewable resources.

Offshore oil: Hibernia

• In the 1960’s several oil rigs were drilling in the sea bed for oil and natural gas. Five discoveries were made: two gas fields on the Scottish fields located 250 km off the coast of Nova Scotia and three oil fields on the great banks of Newfoundland. Hibernia is the largest oil field.

Exploration

• Chevron Canada had a promising drill in the Great banks. • In 1984 mobil oil put nine drills in the area which let geologists

put it on a map.• In 1985 the geologist’s findings made a joint federal-provincial

environmental assessment panel which asked if the oil drilling project on the great banks is good for the environment.

• In 1990 the geologists found that it was ok and approved a 25 year lease to Hibernia management and development company (HMDC).

• This let a joint operation of several oil companies to operate there. It started in 1997.

Geology and production

• Due to the deepness the Hibernia is not being extracted.

• Hibernia is 215 km southeast of st.johns and is in about 80 metres of water.

• There are two sandstone formations deposits; one is called the Avalon, which is 2400m below sea level and easier to drill because it’s not too deep. The other is called Hibernia, which is in high quality but is very deep, 3700m to be exact.

Drilling platform

• Due to dangerous weather there is a report of a capsizing platform, the Hibernia is built with protective measures.

• The platform is made of two parts: The topside Production Facilities and the gravity base structure (GBS).

• The topside consists of living quarters, production equipment, lifesaving tools such as lifeboats, and cranes.

• The GBS has shafts which go to the floor slab to the roof holding the topside facilities. In the GBs is a tank that can hold 1.3 million barrels of crude oil.

• In case of an iceberg accident, the GBS has 16 concrete teeth around it and can absorb an impact of 1 million tonnes.

Transhipment of oil• The oil is held within the GBS and a shuttle tanker comes and takes a

maximum load to shore into another tank until it is put in the market.

Environmental protection• There was an examination of Hibernia on the biological and physical

environment of the grand banks.• The examination resulted in many new safety procedures which include:• Weather resistance,• Shuttles being reinforced, • Ballast and cargo have been separated so no cargo mixes with the ballast

water,• a shutdown procedure,• coast guard regulations,• and environmental damage classes for personnel.

Impact on Newfoundland

• In 1991-1995 2500 people were employed 78% to bull arm construction.

• Many people were trained and some were upgraded in their skills and were used somewhere else.

• During the developmental stage there were many job opportunities, but now, there is less.

• In the future, the royalties from the oil could be in billions of dollars which will be given to the government for the Newfoundlanders use.

•

In closing

• Hibernia was just the start, later on in 2002 people started drilling at the site called Terra Nova, 35 km southeast of Hibernia.

• Then the White Rose field was being drilled in 2005.• Since there has been a decline of jobs in

Newfoundland and Labrador, the oil rigs have been a big job maker.

• The Newfies hope that the Great banks oil field is a new era for jobs to come over the years.

Conclusion

• Energy, coal and oil industries provide a large amount of Canada’s work force

• Without energy or electricity, our economy would not have the technology we have today

• Energy contributes a large amount to our economy

• Coal from the industries causes pollution, which furthers global warming

Who did what?• Kevin – Introduction

• Coal• How energy is used?• Canada's coal industry

• Tamir – The Mackenzie Gas Project• Electricity• Hydroelectricity • Thermoelectricity• Nuclear Electricity• Electrical Production In Canada• Getting Electricity To The Market

• Arnie – The Business of Energy• Trade in Electricity • Trade in Natural Gas• Trade in Oil• Emerging Trends