Canada’s Natural Resources - U of T Research€¦ · Canada Natural Resources and Energy Introduction • The natural resources sectors and earth sciences industries have been an

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Canada’s Natural Resources

and Energy

Sector Analysis

The University of Toronto

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Presentation Overview

1. Industry Overview

– Introduction

– Performance

2. Forest

– Sector Profile

– Performance

– Employment

– Trade

– Paper Manufacturing Sub Sector

- Introduction

- Employment

- Performance

– Wood Products Manufacturing Sub Sector

- Introduction

- Employment

- Performance

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Presentation Overview

3. Minerals and Mines

– Sector Profile

– Performance

– Employment

– Trade

– Mining and Quarrying Sub Sector

- Introduction

- Performance

4. Energy

– Sector Profile

– Performance

– Employment

– Trade

– Crude Oil Sub Sector

– Natural Gas Sub Sector

– Petroleum Sub Sector

– Electricity Sub Sector

– Renewable Energy Sub Sector

5. Emerging Trends

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Canada Natural Resources and Energy

Industry Overview


Introduction

• The natural resources sectors and earth sciences industries have been an engine of economic growth and job creation for generations

• In 2009 alone, the sectors generated 11 percent, or $133 billion, of Canada’s gross domestic product (GDP) and directly employed close to 759,000 people

• Natural Resources Canada (NRCan), a department of the Government of Canada, has a mandate to ensure the sustainable development and responsible use of the country’s natural resources

• Natural resources sector is classified as forests, minerals and metals, energy, and geomatics and geoscience – fundamental to the daily lives of Canadians

• As a leading exporter of natural resources and resource-based technology and knowledge, Canada contributes to the wellbeing of people in many countries and promotes the sustainable development of natural resources in today’s investment climate

5 Source: Canada Natural Resources: 2009

SECTOR FOREST MINERALS/

METALS ENERGY GEOMATICS & GEOSCIENCES

EMERGING TRENDS

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Industry Performance

In 2009, the sector generated 11 percent, or $133

billion, of Canada’s gross domestic product (GDP)




EMERGING TRENDS

The natural resources sector was a major contributor

to the Canadian economy with a GDP of $133 billion




EMERGING TRENDS

In 2009, the natural resources sectors (energy, forest

and mining) had a trade balance of $69.5 billion (33%)




EMERGING TRENDS

In 2009, the natural resources sectors played a

important role in GDP Employment, Trade and New

Capital Investments




EMERGING TRENDS

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Forest sector

Introduction

Industry classification – Forest Sector

12 Source: Datamonitor



EMERGING TRENDS

Canada’s Forest Sector is one of the leading sectors in

the world

• ƒCanada has 10 percent of the world’s forests

• Canada’s forest, other wooded land and other land with tree cover

are made up of 347.7 million ha (87.5 percent) of forest, 41.8 million ha

(10.5 percent) of other wooded land and 7.8 million ha (2 percent) of

other land with tree cover

• Annually, less that 1 percent of Canada’s forests are harvested; 0.7

million ha were harvested in 2008

• Revenues from the sale of timber from provincial and territorial crown

lands were estimated to be $0.7 billion in 2008




EMERGING TRENDS

Forest sector has three main subsectors, Solid wood

product manufacturing, Pulp and paper product

manufacturing and Forestry and logging

There are three main subsectors:

• Solid wood product manufacturing

• Pulp and paper product manufacturing

• Forestry and logging

14 Source: NRCAN- Natural Resource Canada



EMERGING TRENDS

The contribution of forest biomass to Canada’s

secondary energy use has increased from about 3.5%

in the 1970s to about 6.5% today

15 Source: NRCAN- Natural Resource Canada



EMERGING TRENDS

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Forest sector


Forest Sector contributes to 1.8% of the Canadian

GDP

• The forest sector’s contribution to the Canadian economy (GDP)

in 2002 constant dollars was $20.9 billion, or 1.8 percent, in 2009

• In 2009, shipments of pulp, paper and paperboard reached a

level of 21.1 million tonnes (t), a decrease of 16.1 percent from the

previous year

• Production of softwood lumber was 44.4 million cubic meters in

2009

• New capital investments totaled $1.6 billion in 2009: pulp and

paper product manufacturing industry, $0.9 billion (56.2 percent);

wood product manufacturing industry, $0.5 billion (31.3 percent);

and forestry and logging industry, $0.2 billion (12.5 percent)

• Revenue from goods manufactured was $60.8 billion in 2008




EMERGING TRENDS

Canada’s forest industry varies across the country

• Eastern Canada is dominated by pulp and paper product

manufacturing

• Western Canada is dominated by wood product manufacturing

• Quebec, Ontario and British Columbia have the greatest numbers

of forest workers

• The Atlantic Provinces, Quebec and British Columbia are the most

forest-dependent regions, with a large share of their economy

based on the sector




EMERGING TRENDS

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Forest sector

Employment

The Forest sector provides direct employment to 1.3 %

of Canadian work force

• In 2009, the sector provided direct employment for 195 300 people,

representing 1.3 percent of total employment in Canada: wood

industries, for 89 400 people; pulp and paper product manufacturing

industry, for 66 600 people; forestry and logging industry, for 28 300

people; and support activities for forestry industry, for 11 000 people

• Employment is spread across Canada but is primarily in Quebec (68

000 people), British Columbia (46 800 people) and Ontario (40 700

people)

• Wages and salaries for direct employment were $10.3 billion in 2008




EMERGING TRENDS

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Forest sector

Trade

Canada is the world’s largest forest product exporter

• ƒIn 2009, Canada was the world’s third-largest forest-product exporter

(8.3 percent)

• Forest products were a major contributor to Canada’s surplus balance

of trade in 2009 ($14.4 billion)

• The total value of Canadian forest-product domestic exports

decreased by 21.7 percent in 2009 to $23.6 billion

• British Columbia accounted for $7.5 billion (31.8 percent); Quebec,

$7.4 billion (31.4 percent); Ontario, $4.0 billion (17.0 percent); and

other provinces and territories, $4.7 billion (19.8 percent)

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EMERGING TRENDS

Source: Canada Natural Resources: 2009

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Paper Manufacturing subsector

Introduction

Ontario has the highest number of Paper

Manufacturing establishments

24 Source: Canadian Industry Statistics



EMERGING TRENDS

There is an average annual increase of 0.8% in the

number of establishments in the Paper Manufacturing

subsector but a decrease of 2.2% for last year




EMERGING TRENDS

The percentage of small and medium-sized businesses

that were profitable in the Paper Manufacturing

subsector in 2008 was 65.9%, with 34.1% of firms failing

to turn a profit

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EMERGING TRENDS

Source: Canadian Industry Statistics

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Employment

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The total number of employees in the Paper

Manufacturing subsector decreased on an average

by 4.8% between 2000-09. There was a decrease of

9.0% in employment between 2008 and 2009




EMERGING TRENDS

The number of production employees saw a decrease of

5.1% per year on average and a decrease of 9.9% in the

last year. Administrative employees saw a decrease of

3.9% per year and a decrease of 5.9%in the last year




EMERGING TRENDS

In the Paper Manufacturing subsector, total salaries

and wages paid to employees have decreased from

$5.2 billion in 2000 to $3.7 billion in 2009, an average

annual decrease of 3.4%




EMERGING TRENDS

Between 2008 and 2009 production worker wages decreased

by 10.5%. The salaries and wages of administrative workers, on

the other hand, declined from $1.3 billion to $1.0 billion.

Salaries and wages decreased by 6.5%




EMERGING TRENDS

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Performance

Net revenues in the Paper Manufacturing subsector

have decreased from $12.8 billion in 2000 to $833.9

million in 2009 or by 0.2% per year on average. In the

latest year net revenues decreased by 30.6%

33 Source: Canadian Industry Statistics:



EMERGING TRENDS

The decrease in GDP reported between 2001 and

2010 represented a compound annual rate of 2.7%.

Between 2009 and 2010, the total value-added of the

Paper Manufacturing subsector increased by 1.5%

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EMERGING TRENDS


Exports from Canada to US is way higher compared to

exports to other countries

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MINES ENERGY GEOMATICS & GEOSCIENCES

EMERGING TRENDS


Most of the exports happen out of the province of

Quebec

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EMERGING TRENDS


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Wood manufacturing subsector

Introduction

Ontario has the highest number of Wood Product

Manufacturing establishments




EMERGING TRENDS

The number of establishments increased by an

average of 4.5%. Over the most recent year, the

number of establishments decreased by 3.7%




EMERGING TRENDS


that were profitable in the Wood Product

Manufacturing subsector in 2008 was 73.2%, with 26.8%

of firms failing to turn a profit

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EMERGING TRENDS


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Employment

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The total number of employees in the Wood Product

Manufacturing subsector decreased by 4.3% over

2000-09 time span. There was a decrease of 14.3% in

employment between 2008 and 2009




EMERGING TRENDS

The percentage of employees that are production

workers decreased from 88.0% in 2000 to 82.0% in 2009. As a result, there was a relative increase in the

proportion of administrative workers




EMERGING TRENDS

The average annual salaries for employees of the

Wood Product Manufacturing subsector rose at an

average rate of 1.2% per year. There was a decrease

of 0.6% over the 2008-2009 period




EMERGING TRENDS

The salaries and wages of administrative workers, on

the other hand, grew at an average annual rate of

0.3%. Between 2008 and 2009, these salaries and

wages decreased by 13.1%




EMERGING TRENDS

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Performance

Net revenues in the Wood Product Manufacturing

subsector have not changed significantly




EMERGING TRENDS

The decrease in GDP reported between 2001 and

2010 represented a compound annual rate of 0.8%

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EMERGING TRENDS


Canada Exports mostly to US, but exports to China are

growing at a fast rate

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EMERGING TRENDS



British Columbia

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EMERGING TRENDS


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Minerals and Metals Sector

Introduction

Canada is one of the leading mining nations in the

world

• Canada is one of the leading mining nations in the world, producing

more than 60 minerals and metals

• In 2009, more than 220 principal producing mines (metal, non-metals

and coal mines), more than 3000 stone quarries and sand and gravel

pits, and about 50 non-ferrous smelters and refineries and steel mills

were operating in Canada

• Canada’s estimated mineral production in 2009 was $32.2 billion

• Nearly 80 percent of the total was accounted for by Ontario (19.7

percent), Quebec (19.3 percent), British Columbia (17.8 percent),

Saskatchewan (15.6 percent) and Newfoundland and Labrador (7.1

percent




EMERGING TRENDS

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Mining and mineral-processing industries generated

2.7 %of the Canadian GDP

• Mining and mineral-processing industries generated 2.7 percent of the

national GDP and contributed $31.9 billion to the Canadian economy

• Exploration and deposit appraisal expenditures were $1.9 billion, and

spending intentions for 2010 indicate an increase to $2.8 billion

• Capital investment spending in the mining and mineral processing

industries were $9.8 billion in 2009. Spending intentions for 2010 are

expected to reach $11.9 billion

• Gold was the top metallic mineral produced in Canada, with

shipments valued at $3.7 billion, followed by iron ore at $3.2 billion and

aluminum at $3.0 billion

• The leading non-metallic minerals were potash, which had a value of

$3.4 billion; diamonds, at $1.7 billion; and sand and gravel, at $1.5

billion. Coal was the top mineral produced in Canada, with shipments

valued at $4.5 billion




EMERGING TRENDS

In 2009, Canada exported minerals and metals worth

over $66 billion ($49 billion in metals, $12 billion in

nonmetals, and $5 billion in coal), accounting for 18%

of Canada’s total exports

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EMERGING TRENDS

Source: NRCAN, Natural Resources Canada

Value of Metallic mineral production is higher in

Canada

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EMERGING TRENDS


Production of Canada’s Leading Minerals

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EMERGING TRENDS


Production of Canada’s Leading Minerals

58 Source: NRCAN, Natural Resources Canada



EMERGING TRENDS

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Employment

The Mining and Mineral processing sector provides

direct employment to 2.1 % of Canadian work force

• In 2009, total direct employment in the mining and mineral

processing industries – 307 000 people – accounted for 2.1 percent

of Canada’s total employment.

• Approximately 51 000 people were employed in mining, 59 000

people were employed in smelting and refining, and 197 000 people

were employed in the mineral-processing and manufacturing

industries

• Wages and salaries remained competitive in mining and mineral-

processing industries, with 2009 average weekly earnings at $1,056




EMERGING TRENDS

The mining and mineral processing sector provides

direct employment to 2.1 % of Canadian work force

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EMERGING TRENDS


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Trade

Canada is one of the world’s leading exporters of

minerals and mineral products

• ƒCanada is one of the world’s leading exporters of minerals and

mineral products. These products make a significant contribution to

Canada’s international trade, accounting for 19.2 percent of

Canada’s domestic exports in 2009

• Canada continues to be the world’s leader in the production (by

volume) of potash, and it ranks in the top five countries for the

production of primary aluminum, cobalt, molybdenum, nickel,

platinum group metals, salt, titanium concentrate, uranium and zinc

• Canada ranks second in the world in value of diamond production

• Canada continues to be the third-largest producer of primary

aluminum in the world

• Mineral and metals products (including coal) accounted for almost 35

percent of coastwise shipping and more than 52 percent of

international shipping in 2007

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EMERGING TRENDS


Canada is one of the world’s leading exporters of

minerals and mineral products

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EMERGING TRENDS


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Mining and Quarrying subsector

Introduction

Ontario has the highest number of Mining, Quarrying

and Extraction establishments




EMERGING TRENDS


that were profitable in the Mining and Quarrying

(except Oil and Gas) subsector in 2008 was 78.0%,

with 22.0% of firms failing to turn a profit

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EMERGING TRENDS


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Mining and Quarrying subsector


Products are predominantly exported to US from the

year 2009 prior to that it was the UK

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EMERGING TRENDS



Ontario

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EMERGING TRENDS


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Energy sector

Introduction

Canada produces large quantities of energy for both

domestic consumption and export

• Canada has a vast and diversified portfolio of energy resources

• Taking advantage of this endowment, Canada produces large

quantities of energy for both domestic consumption and export

• In 2009, Canada’s production of “primary” energy – i.e. energy found

in nature before conversion or transformation – totaled 16,543

petajoules (PJ). Fossil fuels accounted for the greatest share of this

production, with crude oil representing 36.8 percent; natural gas, 37.7

percent; and coal, 8.2 percent

• Renewable energy sources were also important, with hydroelectricity

representing 7.9 percent; wood, 3.4 percent; and emerging forms

(e.g. wind, tidal and solar), 0.1 percent. Nuclear energy (generated

from the primary source of uranium) accounted for 5.9 percent




EMERGING TRENDS

Canada has the second largest oil resource base

second only to Saudi Arabia

• Crude oil reserves at the beginning of 2009 were estimated at 27.8 billion

cubic metres (bcm) – providing Canada with a resource base second only to Saudi Arabia

• Oil sands represented the majority of these reserves with 27.0 bcm, while conventional sources amounted to 0.8 bcm. The ultimate recoverable

potential from the Alberta oil sands is estimated to be more than 50.0 bcm

• Production of crude oil in Canada totalled 158 million cubic meter, or 433.1 thousand cubic meter per day, in 2009

• Conventional sources provided 51.0 percent of total production, while oil sands production, which has been growing in recent years, accounted for

the remainder

• About two thirds of crude oil production is exported, while the balance is processed by Canadian refineries into refined petroleum products, such as gasoline, diesel and heating oil




EMERGING TRENDS

95% of the Natural gas is from Conventional sources

• ƒNatural gas reserves at the beginning of 2009 totaled 1,754 bcm. Of

this amount, about 95 percent is from conventional sources, and the

remainder is from unconventional sources (such as coal bed methane

and shale gas)

• The total potential from conventional resources is estimated to be 10.1

trillion cubic metres (tcm), while recent estimates suggest that the

potential from unconventional resources is in the range of 10.7 to 26.8

tcm

• Marketable production of natural gas in Canada amounted to 147.5

bcm in 2009. Close to two thirds of this production was exported to

the United States (U.S.), and the balance was sold to Canadian

consumers




EMERGING TRENDS

Hydroelectricity represented 60.4 percent of total

generation in Canada

• Electricity generation in Canada amounted to 585 terawatt hours in 2009

• Canada’s abundant water resources provided a significant contribution in

this regard, as hydroelectricity represented 60.4 percent of total

generation. Other sources of electricity supply included coal (16.9 percent);

nuclear (14.6 percent); petroleum products, natural gas and waste (7.5

percent); and emerging renewable sources (0.6 percent), i.e. solar, wind

and tidal

• Quebec accounted for 33 percent of that amount (97 percent from hydro),

and Ontario accounted for 25 percent (56 percent from nuclear sources)

• On a regional basis, Alberta accounted for 64 percent of Canada’s energy

production. Other leading energy provinces were British Columbia (13

percent), Saskatchewan (7 percent), Quebec (5 percent) and Ontario (3

percent)

• Alberta is the leading producer of fossil fuels, Quebec is the largest

producer of hydroelectricity, and Ontario is the largest producer of nuclear

energy




EMERGING TRENDS

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Energy sector


Energy sector accounts for 6.7 percent of Canadian

GDP

• In 2009, the GDP of Canada’s energy sector – i.e. industries involved in the

production, transformation and transportation of energy – reached $80.2 billion (in 2002 constant dollars), accounting for 6.7 percent of Canadian GDP

• In 2009, new capital investments in energy-related industries represented 20.1 percent of Canadian investments

• The oil and gas extraction industry accounted for about half of this amount, while the electric power industry accounted for about one third

• The energy sector, excluding service stations and wholesale trade in petroleum products, provided direct employment for 257 462 people in

2009, or 1.8 percent of employment in Canada. In addition, service stations and wholesale trade in petroleum products provided direct employment for 96 199 people (0.7 percent)

• In 2009, energy accounted for 21.6 percent of merchandise exports. The energy trade balance ranked first as a contributor to Canada's positive

overall trade balance




EMERGING TRENDS

US is Canada’s biggest market for energy products

• ƒCanada is an open economy, and taking advantage of its sizeable

energy resources, it has become an important and reliable energy provider to the world. In 2009, Canada exported $77.9 billion of energy products, of which 97 percent was to the United States

• Exports of crude oil amounted to 109.2 million m3 in 2009, representing a

value of $42.9 billion. Canadian crude oil accounted for 21 percent of U.S. crude imports and held a 15 percent share of the overall U.S. market. Exports of refined petroleum products in 2009 totaled 24.4 million cubic meter, or $14.2 billion

• Canada exported 93.8 bcm of natural gas, all of it to the United States.

The value of these exports was $16.0 billion. Canadian natural gas accounted for more than 87 percent of U.S. gas imports and held a 13 percent share of the overall U.S. market

• Canada also imported $34.0 billion of energy products, mostly crude oil, refined petroleum products and natural gas




EMERGING TRENDS

US is Canada’s biggest market for energy products




EMERGING TRENDS

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Crude Oil, Natural Gas and Petroleum

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Production and Demand for Crude Oil and Natural

Gas depends upon how well the economy is doing



EMERGING TRENDS


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Crude Oil

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Canada is a leading oil producer in the world



EMERGING TRENDS


• Canada is the 6th largest oil producer in the world, and a price taker in a

global oil market

• Canadian crude oil is sold both domestically and in the US market at the world price

• Despite the fact that Canada is a major net exporter of crude oil, refineries in Atlantic Canada and central Canada continue to import

crude from producers overseas

• This occurs because of the low cost of moving crude oil by ship, and the relatively high cost of pipelining crude oil across Canada

• Some of the crude imported is re-exported to the US in the form of refined

petroleum products

• Canada consumes far less crude oil than it produces, and this situation is likely to continue into the foreseeable future. In 2009, Canada recorded a huge net surplus of more than 840 thousand barrels per day (kb/d). Nearly all crude oil exported from Canada was to the US market

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Between 2000 and 2009, Canadian demand for crude

oil ranged from 1.7 to 1.85 million barrels per day

(mb/d). Canadian demand for crude oil peaked in

2007, at 1.85 mb/d



EMERGING TRENDS


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Canadian crude oil production for the 1995 to 2009

period is growing quickly



EMERGING TRENDS


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The August 2009 merger between Suncor Energy and

Petro-Canada created Canada’s largest energy

company



EMERGING TRENDS


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Canada accounts for about 12% of the world’s

proved oil reserves, and 97% of Canadian

reserves are in the form of oil sands



EMERGING TRENDS


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The East Coast offshore areas represent about 31% of

conventional oil reserves. Canada’s remaining proved conventional oil reserves are located in Ontario, the

Mackenzie/Beaufort Area and the Mainland Territories



EMERGING TRENDS


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Canadian oil imports by source for 2008 and 2009



EMERGING TRENDS


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The lower revenue figures are not a reflection of less

product being exported, but of the lower price of

Canadian crude oil in 2009 compared with 2008



EMERGING TRENDS


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Natural Gas

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The Canadian natural gas market is affected by

market conditions in both Canada and the US



EMERGING TRENDS


• The Canadian natural gas market is part of a continental market, and

is affected by market conditions in both Canada and the US

• In this market, natural gas flows seamlessly across borders via

extensive pipeline networks connecting supply basins to demand

centers

• Regional prices, reflecting natural gas pipeline transportation costs,

are established within this market

• Unlike crude oil, there is no global price for natural gas

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Total North American demand for natural gas in

2009 was about 25.5 Tcf (trillion cubic feet) or

about 70 Bcf/d (billion cubic feet per day)



EMERGING TRENDS


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US production increased 5% largely on account of

surging shale gas production. Meanwhile, Canadian

production declined 4% owing to the maturing

Western Canada Sedimentary Basin (WCSB)



EMERGING TRENDS


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While there are hundreds of natural gas producers in

Canada, the top ten control 52% of production



EMERGING TRENDS


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US reserves are higher than Canadian Natural Gas

reserves. In 2008, Canada posted the largest net

reserve addition in over 25 years



EMERGING TRENDS


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The decline in export volume was the direct result of

falling Canadian natural gas production



EMERGING TRENDS


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Petroleum Products

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Petroleum Products market



EMERGING TRENDS


• Canadian petroleum product prices are essentially set in a global

market

• For example, Canadian wholesale gasoline prices are driven by US

benchmark prices, such as the New York Harbour price. These US

benchmark prices reflect the international crude oil price and such

factors as seasonal demand and inventory levels

• Canadian wholesale prices must remain competitive with these US

benchmark prices

• This is because if Canadian refiners’ prices (for products) are lower,

products will flow out of the country. If refiners’ prices are higher,

marketers will import lower priced products

• The price of crude generally drives the prices of refined petroleum

products. Despite this, crude oil and petroleum product prices can, at

times, move in opposite directions

100

The demand for refined petroleum products

in Canada fluctuates along with seasonal demand

(e.g. increased demand for gasoline during the

summer, more heating oil used in winter)



EMERGING TRENDS


101

Canada has four distinct supply/demand regions for

petroleum products: Atlantic Canada, Quebec, Ontario and

Western Canada. At times, product imports, exports and

interregional transfers play a significant role in balancing

supply and demand



EMERGING TRENDS


102

As both imports and exports have increased over the

last decade, net exports remain relatively unchanged

when compared to 2000



EMERGING TRENDS


103

Electric Power Generation, Transmission and

Distribution

104

Quebec is the largest producer of electric power in

Canada



EMERGING TRENDS


• In 2007, coal accounted for 76% of all the fuels consumed to generate

electricity in Canada and 35% of the cost of these fuels

• Conversely, natural gas accounted for 14% of all fuels consumed in 2007 but

48% of the cost of fuels used

• Alberta (45.2%), Ontario (26.1%), and Saskatchewan (14.3%) were the three

largest users of fuels for the production of electricity in Canada in 2007

• Overall, Alberta used 52% of all coal and 36% of all the natural gas consumed

in Canada for the production of electricity, while Ontario consumed 24% and

34% respectively and Saskatchewan consumed 17% and 9% respectively

• In 2007, Quebec was again the largest producer of electric power in Canada

generating 31.1% of all of Canada’s electric power and 49.7% of all hydro-

electric power. Quebec used only 2.0% of total fuels consumed for other forms

of electricity production

• Electricity generated by wind increased again in 2007, up 19.5% 2,925 GW.h

from 2,448 GW.h in 2006. This represents 0.5% of the total electricity generated

in Canada in 2007, up from 0.4% in 2006

105

Renewable Energy

106

Canada is a world leader in the production and use

of energy from renewable resources



EMERGING TRENDS


• Canada, with its large landmass and diversified geography, has

substantial renewable resources that can be used to produce energy; these resources include moving water, biomass, and wind, solar, geothermal and ocean energy

• Canada is a world leader in the production and use of energy from renewable resources. Renewable energy sources currently provide about

16% of Canada's total primary energy supply

• Moving water is the most important renewable energy source in Canada, providing about 59 percent of Canada's electricity. In fact, Canada is the second largest producer of hydroelectricity in the world

• Biomass is the second most important renewable energy source in Canada. The primary types of bioenergy include electricity and industrial heat from wood waste, space heating from firewood, and biofuels from agricultural crops

• While they are emerging sources, wind and solar energy are experiencing

high growth rates

107

Geomatics and Geoscience sector

Introduction

Geomatics and Geoscience provide a detailed

picture of the physical world

• ƒGeomatics and geoscience are complementary earth sciences that

provide a detailed picture of the physical world and our place in it

• Geomatics consists of products, services and tools involved in the

collection, integration and management of geographic data

• Geographic information can be retrieved from various sources,

including earth-orbiting satellites, ground-based instruments and

airborne and seaborne sensors. These data are transformed into

digital maps and other usable forms with state-of-the-art information

technology

• Geoscience includes geology, geophysics, geochemistry and

geodesy. It deals with all aspects of the physical earth, including

mineral and energy resources; hazards such as earthquakes, tsunamis,

landslides and space weather phenomena; and geological controls

on groundwater and climate




EMERGING TRENDS

It is used in forest management and energy and

mineral exploration to environmental stewardship,

emergency management and monitoring of

Canada’s territory

• Geographic information systems (GISs), global positioning systems

(GPSs), remote sensing, location-based services and technologies,

and Web-based services are growing rapidly, bringing modern

geomatics tools to the computers and cell phones of the average

citizen and small business

• Industry, governments and the public rely on geomatics and

geoscience information and technologies for many purposes, ranging

from forest management and energy and mineral exploration to

environmental stewardship, emergency management and the

monitoring of Canada’s territory and borders

• Canada’s resource-based economy depends on innovations in

geoscience for the life cycle of resource exploration, development

and rehabilitation. Modern geoscience has helped Canada become

a leading producer of diamonds




EMERGING TRENDS

110

Geomatics and Geoscience sector


Canada continues to be a world leader in

geoscience and geomatics applications and

technology

• Canada is a world leader in the niche markets of remote sensing data and

applications, including mapping from space, sea-floor mapping and

hydrography

• Canada is recognized internationally for developing customized GIS

applications for urban planning, agriculture, geo-marketing and natural

resources management

• Major international markets for Canadian geomatics firms include North

America, the Middle East and Latin America

• International demand for geomatics products and services will continue to

increase, stimulating the growth of the industry in the coming years

• Canada continues to be a world leader in geoscience and geomatics

applications and technology, principally in minerals and energy

exploration and development

• Canada provides much of the information, expertise and technology used

around the world for the responsible development of natural resources




EMERGING TRENDS

112

Emerging Trends

Emerging Trends in the Forest Industry Sector

• Industry transformation and a focus on innovation are leading to

improvements that will strengthen the competitiveness of Canada’s forest

sector in all areas

• Market challenges have been faced head on, and new market opportunities

are being targeted. Work is underway to identify both new products from fibre

and new markets for Canada’s traditional products

• Non-traditional products and services are the focus of intensive research and

development. Of particular note are those products and services derived from

forest biomass (for example, bioenergy, bioproducts and biochemicals).

Increased production of bioproducts is expected to give the industry a

significant boost in the highly competitive global marketplace

• The importance of environmental sustainability has been recognized across

the forest sector by government, industry and other players. Sustainable forest

management practices at every stage of production demonstrate responsible

resource stewardship and respond to the expectations of the new “green

movement” reality of today’s global marketplace

113 Source: NRCAN – Natural Resources Canada



EMERGING TRENDS

Emerging Trends in the Metals and Minerals Sector

• Looking ahead, the mining and mineral processing industries should

be an important source of economic growth in Canada

• As a result of expected relatively stronger prices, mines are projected

to open, re-open or expand production in Canada in 2010

• Export Development Canada forecasted that Canada’s exports of

ores and metals should rise by 10% in 2010

• According to a study by Informetrica, the mining and mineral

processing industries are forecast to grow by 6.4% y/y over the period

2010-13, which is double the expected growth rate of the total

economy

114 Source: NRCAN – Natural Resources Canada



EMERGING TRENDS

Canada’s conventional crude oil production will

decline over time, and oil sands production will

progressively make up a larger share of production

115



EMERGING TRENDS

Source: Trendwatch Series, 2010

All forecasts point to declining production of Natural

Gas in the coming years but recovering over the long

term

116



EMERGING TRENDS


China has drawn on its large foreign currency reserves

and cash to acquire stakes in Canadian-traded

natural resource companies

• In April 2010, the state-owned enterprise China Petroleum & Chemical

Corporation (more commonly known as Sinopec), one of the largest

integrated energy and chemical companies in China, offered to

acquire from ConocoPhillips Company its 9 per cent stake in Alberta

oil sands producer, Syncrude Canada Ltd. for US$4.65 billion

• This followed PetroChina’s August 2009 agreement to buy a 60 per

cent stake in two oil sands properties held by Athabasca Oil Sands

Corp. for $1.9 billion, and preceded the $817-million acquisition by

China Investment Corp. (CIC) of a 45 per cent stake in an oil sands

project held by Penn West Energy Trust, and a concurrent $435-million

investment for a 5 per cent stake of Penn West

• CIC had already made its mark in the Canadian mining sector earlier

this year when it acquired a 17 per cent interest in B-class shares of

Teck Resources Limited for $1.74 billion

117



EMERGING TRENDS


China has drawn on its large foreign currency reserves

and cash to acquire stakes in Canadian-traded

natural resource companies

Other significant transactions include:

• The signing of a memorandum of understanding between TSX-listed

Quadra Mining Ltd. and a subsidiary of State Grid Corporation of

China, the largest Chinese utility company and a major end user of

copper, to form a joint venture with respect to two of Quadra’s

properties which represent $900 million in assets

• The offer by Jinchuan Group Ltd., China’s largest producer of nickel,

cobalt and platinum, to acquire all common shares of Crowflight

Minerals Inc., a Canadian junior nickel producer, for $150 million

• The successful joint takeover bid by China’s Jilin Jien Nickel Industry

Co., Ltd. and Goldbrook Ventures Inc. of the junior nickel explorer

Canadian Royalties Inc. This was the first hostile takeover bid by a

Chinese company in Canada

118



EMERGING TRENDS


Canada’s Natural Resources - U of T Research€¦ · Canada Natural Resources and Energy Introduction • The natural resources sectors and earth sciences industries have been an

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