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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.

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