Energy Hydrocarbons


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  • Energy Hydrocarbons

    1. 1. End Use of Energy and Hydrocarbons Energy Council of Canada Val Mirosh, Vice President – NOVA Chemicals President, Olefins & Feedstocks Mont Tremblant June 19, 2006 NOVA Chemicals
    2. 2. Outline <ul><li>Acknowledgements </li></ul><ul><li>Role of energy in Canada </li></ul><ul><li>Canadian manufacturing sector </li></ul><ul><li>Energy issues for Canadian end users </li></ul><ul><li>Opportunities in Canada </li></ul><ul><li>Path forward </li></ul>
    3. 3. Key Canadian Energy Milestones of the 20 th Century <ul><li>Canadian railway </li></ul><ul><li>Energy pipelines </li></ul><ul><li>Open markets, technology and energy </li></ul><ul><li>efficiency </li></ul>
    4. 4. Natural Gas Prices 1930 - 2003
    5. 5. Natural Gas Consumption by Sector (N.A.) Source: US Energy Information Administration
    6. 6. Profile of the Canadian Economy Source: Canadian Manufacturers and Exporters
    7. 7. Value-added Manufacturing in Canada Source: Canadian Manufacturers and Exporters
    8. 8. Petrochemicals Upgrade Value of Canadian Resources <ul><li>Value of polyethylene produced in Canada from ethane has ten times the value of an equivalent value of gas. </li></ul>
    9. 9. Proven Natural Gas Reserves – YE 2003 Russian Federation 1,659 Tcf Iran 942 Tcf Qatar 910 Tcf UAE 214 Tcf Saudi Arabia 236 Tcf USA 185 Tcf Canada 59 Tcf Algeria 160 Tcf Venezuela 147 Tcf Nigeria 176 Tcf Iraq 110 Tcf Indonesia 90 Tcf Australia 90 Tcf Malaysia 85 Tcf Norway 87 Tcf Other FSU 322 Tcf Trinidad 26 Tcf Source: BP Statistical Review of World Energy, June 2004 Total World Proven Natural Gas Reserves = 6,205 Tcf China 64 Tcf
    10. 10. Natural Gas Costs around the World, Average 2005 ($US per million BTUs) Sources: Bloomberg, Economic Times, EIA, Fertecon, Financial Times, Pace, Platts, World Bank; compiled by ACC
    11. 11. Natural gas prices since 1990
    12. 12. Canadian Energy Research Institute “ the real danger is for widespread manufacturing shutdowns…
    13. 13. CIEC Studies Impact of Higher Energy Prices <ul><li>What the Study Told Us </li></ul><ul><li>Fuel use is down but fuel bills are up </li></ul><ul><li>Efficiency is up, but total costs are going up too </li></ul><ul><li>International competitiveness is suffering; things will get worse as business cycle progresses </li></ul><ul><li>Already companies are looking offshore for new investments, as growth and profits are squeezed </li></ul><ul><li>Federal and provincial governments must act in coordinated fashion to address competitiveness impact </li></ul>
    14. 14. Energy Efficiency – One of the top Reasons for Capital Investments in 2005
    15. 15. Polyethylene New Capacity 2004-2007 <ul><li>Year Region Company Product Capacity (MM lbs ) </li></ul><ul><li>Europe TVK, Hungary HDPE 440 </li></ul><ul><li> Basell, Germany HDPE 700 </li></ul><ul><li>Middle East Amir Kabir PC, Iran LL / HDPE 960 </li></ul><ul><li>Petrokemya, Saudi Arabia LL / HDPE 1,760 </li></ul><ul><li>Sonatrach, Algeria HDPE 240 </li></ul><ul><li>Asia Daqing PC, China LDPE 440 </li></ul><ul><li>Total 2004 4,540 </li></ul><ul><li>2005 Europe Tarragona, TG, Spain LLDPE 660 </li></ul><ul><li>PKN Orlen, Poland HDPE 700 </li></ul><ul><li>Borealis, Austria HDPE 770 </li></ul><ul><li>Latin America Rio Polimeros, Brazil LL / HD 1,190 </li></ul><ul><li>PEMEX, Mexico LDPE 140 </li></ul><ul><li>Middle East Maroun PC, Iran HDPE 660 </li></ul><ul><li>Petkim, Turkey LDPE 270 </li></ul><ul><li>AryaSasol PC, Iran LD/HD/MDPE 660/660 </li></ul><ul><li>Laleh PC, Iran LDPE 660 </li></ul><ul><li>Qatar Petrochemical, Quatar LDPE 440 </li></ul><ul><li>Asia BASF / Yanzi PC, China LDPE 880 </li></ul><ul><li>NPC - Thailand HDPE 550 </li></ul><ul><li>Secco (BP JV), China LL / HDPE 1,300 </li></ul><ul><li>Total 2005 9,540 </li></ul><ul><li>2006 Europe Turkmengas, FSU LL / HDPE 440 </li></ul><ul><li>Latin America PEMEX, Mexico LLDPE/HDPE 880 </li></ul><ul><li>Middle East Simorgh, Iran LDPE 660 </li></ul><ul><li>Jam Petrochemical, Iran LL / HDPE 660/660 </li></ul><ul><li>Asia Gail, India HDPE 220 </li></ul><ul><li>Jilin PC, China HDPE 660 </li></ul><ul><li>Nanhai PC, China HDPE/LDPE 440/550 </li></ul><ul><li>Lanzhou PC, China LDPE 440 </li></ul><ul><li>Total 2006 5,610 </li></ul><ul><li>Europe Huntsman, UK LDPE 850 </li></ul><ul><li>Middle East Equate PC, Kuwait LL / HDPE 990 </li></ul><ul><li>Total 2007 1,840 </li></ul><ul><li>Total 21,530 </li></ul><ul><li>Source: CMAI, Chem Systems and NOVA Chemicals </li></ul>
    16. 16. Opportunities for Canada <ul><li>Canada’s energy resources </li></ul><ul><li>Reliable and stable energy supply and pricing </li></ul><ul><li>Coordination of Canadian energy policies </li></ul><ul><li>New technology </li></ul><ul><li>Regulatory streamlining and efficiency </li></ul><ul><li>Optimal use of energy sources </li></ul><ul><li>Energy infrastructure is the key </li></ul>
    17. 17. Canada’s Energy Resources 432 252 Uranium (thousand tonnes) 79 7 Coal (billion tonnes) 1,550 – 28,600 - Hydrates >500 - Tight Gas 528 <1 Coal Bed 227 54 Conventional 2,805 – 29,855 54 Natural Gas (Tcf) 315 174 Oil Sands 37 4 Conventional 352 176 Crude Oil (billion barrels) Rmg . Resource Reserves
    18. 18. Path Forward <ul><li>Encourage development of new sources and types of energy within Canada </li></ul><ul><li>LNG terminals in Canada </li></ul><ul><li>Expedite Arctic gas pipeline projects </li></ul><ul><li>Encourage development of new energy technologies – clean coal, biomass, wind, etc. </li></ul><ul><li>Continued conservation of efficient use of natural gas and hydrocarbon resources </li></ul><ul><li>Develop a coherent Canadian energy strategy recognizing we are competing in a global market </li></ul><ul><li>Optimize the exploitation and use of Canadian energy recognizing value add potential </li></ul><ul><li>Develop our energy infrastructure to keep pace with energy development </li></ul>