Canadian Energy Markets Responding to Global Economic Turmoil

09/18
For immediate release
21 July 2009

Canadian Energy Markets Responding to Global Economic Turmoil

CALGARY - Despite price fluctuations over the past 12 months and the global economic slowdown, the National Energy Board (NEB) is reporting Canadians can expect to see energy prices balance supply and demand to 2020.

Fossil fuels will be the dominant source of energy supply, and there will be a continued shift from conventional oil and gas production to non-conventional sources such as shale and tight gas. Alternative sources of energy, such as wind, will also continue to grow - albeit from a lower base than conventional sources.

"Both industry and Canadians are adjusting to a changing energy environment," said NEB Chair Gaétan Caron. " Although there will always be uncertainties with major implications, our energy sector is keeping in balance with the current economic and environmental shifts."

The newly released 2009 Reference Case Scenario: Canadian Energy Demand and Supply to 2020 is an update to a 2007 study, Canada's Energy Future and reports on a range of issues and trends for the future of energy supply and demand in Canada. Slower economic growth, changes in prices and increased awareness of environmental issues will influence Canadian energy demand and supply over the next 10 years, however the markets will continue to function well and remain balanced.

Other key highlights of the report include:

• Continued growth of energy demand but almost one per cent lower than previously projected;
• Shifting production and supply from conventional oil and gas to unconventional and emerging energy sources including a notable increase in wind capacity; and,
• A shift toward cleaner electricity supply in Canada with hydroelectric, nuclear and natural gas capacity increasing, while coal-generated electricity declines.

As with past assessments, the Board undertook a consultative process in developing the report. Representatives of industry, environmental groups, government and interested stakeholders were engaged in consultation sessions held in early 2009. Comments received during these sessions helped shape the final document.

Celebrating 50 years of regulatory leadership, the NEB is an independent federal agency that regulates several parts of Canada's energy industry. Its purpose is to promote safety and security, environmental protection, and efficient energy infrastructure and markets in the Canadian public interest, within the mandate set by Parliament in the regulation of pipelines, energy development and trade. As part of its mandate, the NEB monitors the supply of all energy commodities in Canada and reports its findings. The NEB Internet site is regularly updated with new energy information for the Canadian public.

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For further information:

Tara Sukut
Communications Officer
National Energy Board
Telephone: 403-299-3930
Telephone (toll free): 1-800-899-1265
Telecopier: 403-292-5503
Telecopier (toll free): 1-877-288-8803
TTY (Teletype): 1-800-632-1663

Kristen Higgins (kristen.higgins@neb-one.gc.ca)
Communications Officer
National Energy Board
Telephone: 403-299-3122
Telephone (toll free): 1-800-899-1265
Telecopier: 403-292-5503
Telecopier (toll free): 1-877-288-8803
TTY (Teletype): 1-800-632-1663

Related documents:

• 2009 Reference Case Scenario: Canadian Energy Demand and Supply to 2020 - An Energy Market Assessment - July 2009 [HTML]
• 2009 Reference Case Scenario: Canadian Energy Demand and Supply to 2020 - An Energy Market Assessment - July 2009 [PDF 3415 KB]
• 2009 Reference Case Scenario: Canadian Energy Demand and Supply to 2020 - Appendices - An Energy Market Assessment - July 2009 [PDF 2015 KB]
• 2009 Reference Case Scenario: Canadian Energy Demand and Supply to 2020 - An Energy Market Assessment - July 2009 [ZIP 3208 KB]
  (Maintains links between report charts and their associated data, and between appendicies and data files.)
• 2009 Reference Case Scenario: Canadian Energy Demand and Supply to 2020 - Appendices - An Energy Market Assessment - July 2009 [ZIP 2645 KB]
  (Maintains links between report charts and their associated data, and between appendicies and data files.)

For a copy of documents:

The Publications Office
National Energy Board
444 Seventh Avenue SW
Calgary, Alberta
T2P 0X8
E-mail: publications@neb-one.gc.ca
Telephone: 403-299-3562
Telephone (toll free): 1-800-899-1265
Telecopier: 403-292-5576
Telecopier (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663