Manufacturing News from the Engineered Designer Perspective

US energy self-reliance, pipeline uncertainty put Canada’s energy sector at risk

There are more warnings from the Conference Board of Canada regarding Canada’s energy sector. Two obstacles stand in the way of Canada’s energy producers: growing production of oil and gas in the United States, and continuing uncertainty over pipeline capacity. The future success of Canada’s energy sector depends on gaining a growing share of America’s “energy import pie” while diversifying into global markets. oil-imports-US-Canada-IEA-EDIWeekly

A senior economist in forecasting and analysis at the Conference Board of Canada, Glen Hodgson, said in a statement that the surge in production of tight oil and gas south of the border has raised domestic production by 40 per cent from 2008 levels. This added domestic production means that the US will be able to cut its oil imports by half by the year 2020, according to International Energy Agency forecasts. As Canada has provided 20 per cent of those imports into the US, such a cut could be a major problem for Canada. Canada has become so reliant on the American market to absorb its exports that a change in that relationship could be devastating.

The growing US energy self-reliance poses a “huge challenge” to Canadian producers, who need to secure “enhanced” access to the American market in the short term by building the Keystone pipeline, Hodgson argues, though approval of that controversial and much-delayed pipeline is not Canada’s to give. He sees a two-part,  longer-term strategy that first expands access to global markets and second maintains that share of the US market. In order to accomplish the first of these goals, Canada needs to make it a “top national priority” to develop “a diversified energy transmission infrastructure.” The second part of the strategy, maintaining and expanding share of the US market, also requires adequate infrastructure—pipelines—but also what he calls a “social licence to operate,” meaning that Canada must demonstrate a “regulatory alignement” with the US, a commitment to sustainable energy development, particularly in the area of greenhouse gases.

In its just released Canadian Industrial Profile: Spring 2013, the Conference Board says that pipeline delays are also a threat to services companies that supply the energy producers. These companies are already seeing a decline in business, the report says. Support services such as welding, electrical contractors, pipe fitters and structural steel are pulling back, and will “most likely hesitate” to hire staff pending a guarantee that the pipelines (Keystone, Northern Gateway) will be built. Industry profits will rise, however, thanks to growth in prices.

More Great Stories
SpaceX launches Immarsat 5 F4: continuing the Elon Musk tradition of innovation with commercial payback
Currently, as I write this, the Immarsat-5 Flight 4, livecast via YouTube (below) is at an altitude [more]
Richard Browning invents super human 450 km per hour “Iron Man” flight suit (video)
The idea of having superhuman capabilities, especially the ability to fly, has captivated us since a [more]
Clean technologies for mining: Green Mining’s time has come
In the United States, metal mining "creates nearly 30% of all the toxic releases measured annual [more]
3D printing, or additive manufacturing, becoming more mainstream across many manufacturing sectors
Additive manufacturing, otherwise known as 3D printing is growing in practicality and popularity. In [more]
Is Clean Diesel a myth, or a yet-to-come promise?
Four big cities have already moved to ban diesel from their cities: Paris, Madrid, Athens and Mexico [more]
Auto Sales Down Again for Big Car Makers
Demand is down again for automobiles in April, after an already weak March 2017. Overall, in Apr [more]
Technology that could help save the earth: Carbon Capture and Storage
No one technology can "save the earth" but, since carbon dioxide emissions are one of the major caus [more]
Creative work skills helping drive the 4th Industrial Revolution, the fusion of biological, digital and physical
The fusion of three worlds — biological, digital and physical — gave rise to the massive potenti [more]
3D printed homes in 24 Hours — printed on site: printed villas, offices and floating saunas?
3D Printing's potential has hardly been tapped. NASA has programs in place to 3D print components fo [more]
Wind capacity reaches 82,183 megawatts in US, enough to power 24 million homes
The United States is chasing after wind-friendly Europe and Asia. With wind power generating more po [more]
Vitamin-derived battery created by U of T chemists
The search for better batteries has taken another step forward with the work of chemists at the [more]
Tesla is now the number one valued carmaker in America, jumping ahead of GM
  No one could argue that Elon Musk's visionary approach to automobile engineering made [more]
Manufacturing continues to grow but exports decline, increasing Canada’s trade deficit in February
Canada’s manufacturing sector continued to grow in March according to the Markit Canada Manufa [more]
“Fireworks” in Canada’s economy as GDP rises 2.3 per cent in January
Canada’s economy grew at an annualized rate of 2.3 per cent in January, reports Statistics Can [more]

Other Popular News and Stories

  • Canadian oil production up; producers turning to railways for shipment
  • BC refinery close to financing deal
  • GM investing $250 million at Ingersoll plant
  • Skilled labour shortage in world oil industry: report
  • Volkswagen to produce super-efficient hybrid
  • Japex to buy into west coast LNG development
  • Bombardier holds update on CSeries aircraft
  • Canada keeping up pressure on US for Keystone XL approval
  • Bombardier nearly ready to flight test CSeries
  • Miners struggling with higher costs, lower prices
  • Canadian business, except energy, had profitable Q4: Statistics Canada
  • Russian leasing company orders 42 CSeries jets from Bombardier
  • Economy managed slight growth in Q4, but shrank in December
  • FTG Aerospace to supply avionics to Rockwell Collins
  • Clean energy expected to surge as pv costs drop
  • Manufacturing the sole industry showing job losses in February
  • DART Aerospace re-branding itself to reach wider markets
  • SPPCA's new landing gear facility opening in Mississauga
  • Pratt & Whitney Canada announces helicopter engine contracts
  • RV industry has growing role in Canada's economy: study