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f you are seriously interested
in the overall energy situa-
tion in Canada, you may well
be a bit confused. Opinions
range from outright optimism
to hopeless gloom and doom.

As usual, the truth lies some-

where in between.

Canada has always been rich in
energy resources. Butit is true -
that our enormous and growing de-
mand is beginning to outstrip
available supply and oil imports are
increasingly costly. At the same
time, just the basic business of get-
ting the energy from its source
of supply, converting it to useable
form and bringing it to where
itis needed costs more and more
each year. And, of course, search-
ing for and developing new
resources Is extremely costly,

That, in the simplest possible
terms, is Canada’s overall
energy position, Now, slill keeping
to basics, here are short explana-
tions of where we stand on specifie
onergy resources.

OIL-OUR OWN
AND IMPORTED

Oil, right now, is our most critical
energy problem. We rely on it for
45% of our energy and the avail-

able supply from Canada's existing .

resources can no longer meet
national demands, About one-third
of the oil we use is imported. It is
increasingly costly and there is

always arisk of having it reduced ~
in an emergency.

ae

OTHER ENERGY
SOURCES

In 1977, the gross amount that
went out of Canada as a result
of huying foreign oil was 3 billion
dollars~ that's $480 per family
per year

Increasing world demand on
foreign oil sources could mean
that, in future, they will be unable
to produce enovgh oil to meet
world demand. Canada can't afford
to became over-dependent on
foreign oil. We have given a com-
mitment to hold imports in
1985 to one-third of our oil demand,
or 800,000 barrels a day, which-
ever is less.

If we do not conserve what we
have, and develop our own
resources or find alternative
supplies, we will be in an increas-
ingly high-risk position. We

have to develop new and difficult
resources such as the heavy oils
and oil sands.

While the oil sands deposits are
huge, the available supply is
small. Oil has to be separated from
sand in huge plants. The newly-
opened Syncrude plant cast over 2
billion dollars, yet will supply
only 7 percent of Canada’s daily oil
requirements, Further develop-
ment will be slow and costly,

Exploration for oil in the Arctic
and other frontier regions is
also expensive. And if major oil fmds
are made there the costs of pro-
thiction will be high.

As you are aware, the prices of
oil are higher now. And that’s
been a necessary change to assure
that the more expensive oil sources
can be developed, These projects,
such as the Syncrude plant,
wouldn't be possible without the
higher prices authorized by
federal and provincial governments.

NATURALGAS.

Natural gas accounts for 18% of -
Canada’s total energy consump-
tion, Recent exploration successes
in Western Canada and the -
Arctic Islands have resulted ina
brighter outlook for gas than
for oil. In fact, natural gas may be
vital aa a replacement fuel for oil.
However, in some places in
Canada, gas is not readily available
as a fuel, Pipelines will have tobe

~ -‘exterided to service these markets. a y

More high-cost exploration is-
still necessary. Development of
these frontier resources will be
extremely difficult and costly. We
should seek opportunities to
improve gas transportation sys-
tems, including an extension

of the natural gas pipeline east of
Montreal.

ELECTRICITY

Electricity is a versatile premium
energy, particularly suitable for
high-performance work such as
lighting and driving motors.

In Canada today, water gener-
ated power supplics more than 70
per cent of our electricity, or
about 4 of our total energy. The
great advantage of hydro power
is that it is a renewable source
of energy. However, many suitable.
hydro sites in Canada have already
been developed or are too remote
to be developed economically.
Thermal generation supplies the
other 30% of our electricity but
burning fossil fuels for electricity
creates a large energy waste factor.

So, in the future, as the
country's electrical demands con-
tinue to grow, hydro power will
account for a progressively smaller
portion of the total and more elec-
tricity will come from such sources
as coal, nuclear energy and forest
wastes, But conserving electricity
helps save dollars for the individ-
ual as well as the country.

The Wlerald, Friday, December 15, 1978, Page 11

PROBLEMS.

NUCLEAR POWER

CANADIAN COAL

Canada has designed and built the
world-famous CANDU nuclear
powor reactors for electricity, and
has substantial uranium deposits
for them. These CANDU reactors
are bused on a Canadian concept
which uses natural uranium as the
fuel while heavy waler moderates
the fission process, An advantage
of nuclear power is that it would
take less than 250 grams (about 4
pound) of uranium to produce
enough electricity for the average
Canadian household for one
year. At present, nuelear power
contributes about 2% of our
total energy, but aboul 27% of the
electricity consumed in Ontario,
While nuclear plants require a
very large initial investment,

. their delivered energy costs are

competitive with other enerpy

- sources, The 10 to 12 year lead time

for planning and construction is
similar with that for fossil electric
plants. However, the potential of
nuclear power, as with other energy
sources, must be balanced

against the social, economic and
environmental impacts of its
generation.

Canada has abundant coal deposits,
most af which are found in the
West and the Maritime provinces.
Major markets are in Central
Canada, however, and this means
high transportation costs, At
the present lime coal supplies
about 9% of total energy demands
in Canada, of which 3.6% is
from Canadian mines. The rest is
imported from the US.

The conversion of coal to a gas
or liquid fuelis an exciting,
area of research that promises to
increase its potential as a source
of energy. But coal pusification
and liquefaction are not expected
to have an impact on production
until the late 1980s, oh.

An example of a contemporary
use for coal is the eo-operatibn
between Nova Scotia unduNew
Brunswick and the federal govern-
ment in the development-tf :
local coal for use as a replaéement
for oil in generating electricity.

FUEL FROM BIOMASS

Mader science has a new term,
Biomass conversion, that means

the use of wood and organic mate-
rials to produce energy. Bacteria
that work on organic materials pro-
duce a gas that, when collected,
can be used as a source of energy,
or the biomass can simply be
burned as fuel. The possibilities
are oxtensive, especially in forestry.
Research on improved
methods of collecting and convert-
ing the biomass is necessary
in order to expand its role as a fuel
source, But it may contribute
as much as 7% of our total energy
within a decade. A new federal
program will assist forest industry
firms to convert their plants to
use forest wastes as fuel.

SOLAR ENERGY

Solar energy offers possibilities
for widespread use across Canada.
However, introduction of solar
technology will be a gradual pro-
cess. [t will not transform the
energy situation overnight. Popular
enthusiasm for solar heating
often tends to outrun current
technical and economic realities.
There's still a lot of industrial
development and testing to be
done to improve the efficiency and
decrease the cost of solar, home
heating.

There's also a need for laws to
protect the owner of a solar heated
house against assessment prac-
tices or shade which could render
his solar investment uneconomic.

Anew federal program.will
encourage establishment of a
strong Canadian solar equipment
manufacturing industry.

Between 1978 and 1983, the federal
government will purchase sub-
stantial amounts of Canadian solar
equipment for federal buildings
under a program known as PUSH.
(Purchase and Use of Solar
Heating.)

Solar cells can capture and
convert sunlight into electricity as
we saw in the operation of space-
craft. At the moment, however, the
cost of solar electricity would be
far higher than hydro electricity,

OFHER RENEWABLE
SOURCES —

The wind and the tides are two old-
fashioned but appealing potential ,
sources of energy, Windmills were
in use hundreds of years ago.
Modern windruills, some of novel
design, are being developed in
Canada and abroad. They are main-
ly suitable, at present, in remote
areas with high prevailing winds.
In the Maritimes, energy from
the Bay of Fundy tides may, in the
foresceable future, be developed
for the region, This could be impor-
tant in an area heavily dependent

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on foreign oil. The federal govern-
ment, in co-operation with the
provinces and private industry, is
supporting increased research

and development of these and other
renewable energy forms.

YOUR PART IN
ANSWERING THE
ENERGY PROBLEM

Energy security depends on all of
us. If 23 million Canadians each

do their part to help conserve the
energy we have, we're bound to
save a large amount. This will be
vital In keeping our oif imports,

and the cost to the nation, to a safe
level in coming decades. And it
simply makes sense to save energy.
When it comes to replacing
today’s barrel of oil tornorrow, the

* production cost will be several

times as high.

Per capita, Canadians use more
energy than any other nation.

Do we really need to use so
much? The potential for cut-
ting waste is large. Do your part
and you'll be saving money
for yourself and for the nation.
And you'll be helping assure
Canada a more secure future.

FOR MORE DETAI is |

ON CANADAS ENERCY |
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