By Denis Stevens
When you turn on your stove or fill up your car, do you ever take a minute to wonder about where the energy actually comes from? Not that likely, although in this world of ever increasing expectations around affordability, environmental performance and security of energy, it might just be a good idea. Did you know that your neighbor to the north, Canada, is now the largest energy supplier to the U.S?
Growing this relationship makes sense.
The dynamism of the Canada-U.S. energy relationship is often forgotten as we charge our BlackBerrys or fill our vehicles; yet behind our wall plugs and under our gas pumps the footprint of Canada's energy relationship with the U.S. and with Oregon is clear.
Canada has an enviable supply of hydro, natural gas, oil, uranium and wind, and our exports are largely flowing south. We're the third largest producer of hydroelectricity in the world and almost all the electricity that the U.S. imports comes from Canada.
Canada holds the third largest reserves of oil after Saudi Arabia and Venezuela at 174 billion barrels. 80 percent of the world's known oil reserves are state controlled or managed by national oil companies.
However, the Government of Canada does not run our oil sector. We are not members of OPEC. And of the 20 percent of the world's oil supply that is openly accessible to market based development, 60 percent comes from Canada's oil sands.
Locally, Canada helps power Oregon's economy. Canada supplied about 10 percent of Oregon's oil in 2010. Oregon's largest source of oil remains Alaska, but the Canadian share is growing.
Canada also provides about 50 percent of Oregon's natural gas supply. The Pacific Northwestern states and British Columbia together operate and benefit tremendously from the Columbia River hydropower system.
Canada provides affordable, reliable, and sustainable sources of energy for Oregon and the rest of the United States. That is good for both countries. In fact, 8 million American jobs depend on trade with Canada. Our relationship is a good-news story given the geopolitical situation of many other major exporting countries, and the shared values Canadians and Oregonians hold regarding energy extraction and use.
Groups are actively campaigning against the construction of Keystone XL, a pipeline that would carry Canadian oil to the United States. There is no question that Keystone XL is a massive engineering project, but it has been subjected to a comprehensive environmental review, and will be going far beyond existing U.S. pipeline safety regulations.
As for projects in Canada's oil sands, these are also subject to extensive environmental and regulatory review. We manage water use by setting withdrawal limits from the river. We work with a wide range of stakeholders to regulate water quality, health, and to better understand aboriginal considerations. All land disturbed by the oil sands must be reclaimed by law. Between 1990 and 2008 GHG emissions per barrel of oil were reduced by 29 percent, and there are technologies under development that will further reduce emissions.
The oil sands are a key strategic resource, an economic engine contributing substantially to employment and GDP on both sides of the border. More than 900 American companies -- including at least 16 businesses in Oregon -- provide goods and services to the oil sands and create thousands of good jobs.
In short, expanding capacity and increasing deliveries from Canada's oil sands mean good things for Oregon workers.
Our two countries have signed on to exactly the same greenhouse gas emissions reduction targets, and Canada has adopted the tailpipe-emissions standard that originated in California. Canada already has a clean electricity system with fully 78 percent of Canadian electricity production derived from non-emitting sources such as hydropower and nuclear. Though Oregon is also endowed with hydropower, overall in the U.S. 70 percent of electricity comes from coal, natural gas or petroleum.
Given the integration and mutual benefits to both Oregon and Canada, the question really is how do we strengthen and further diversify this energy dialogue? Canada recognizes the environmental challenge before us and is acting to regulate and invest in science and technology improvements for energy production.
Unlike many energy exporters, we are committed to transparency in the way we assess energy projects. Canada is proud of its diversified energy relations with Oregon and the United States, and we look forward to debate and dialogue on the future of our energy partnership.
Denis Stevens is consul general of Canada in Seattle.