Energy & Infrastructure
Natural resources are, and will continue to be, a crucial component of the economic well-being of British Columbians. To advance BC's prosperity, we must responsibly develop new forms of energy resources and build the necessary infrastructure to connect them with global markets. The Council’s work supports the efforts of businesses and governments to develop resource projects, energy systems and transportation networks in a way that minimizes the environmental impacts and maximizes economic benefits for communities and BC’s job creators.
Finlayson & Mullen Op-Ed: Without pipelines, Canada's prosperity is on the line (Troy Media & Vancouver Sun)
When it comes to reaching new energy markets, Canada lags dangerously behind the Americans, who have aggressively expanded their oil and gas industry and built the infrastructure necessary to support it.
There are approximately 840,000 kilometers (km) of pipelines in Canada — 25,000 km of feeder lines, 250,000 km of gathering lines, 450,000 km of distribution lines, and 117,000 km of transmission lines. They carry oil, refined petroleum products, and natural gas. The National Energy Board directly regulates ~73,000 km of this pipeline network; the provinces are largely responsible for everything else.
To Pipeline or Not to Pipeline
As a major player in the global energy sector with a large and diverse endowment of natural resources, Canada must find ways to get our energy and other products to market. This is a task we are failing to do.
Finlayson Op-Ed: Economic silver linings for Canada in the Trump cloud (Troy Media)
Donald Trump’s surprise victory in the Presidential election, coupled with continued Republican control of both branches of the U.S. Congress, heralds significant changes in American policy in the domains of trade, immigration, foreign affairs, energy and taxation, among other areas. Many Canadians are understandably uneasy about the direction America may take under new leadership. At a minimum, Mr. Trump’s political ascendancy injects added stress and uncertainty into an already fragile and unsettled world.
Woodfibre LNG: Unlocking BC’s Natural Gas Assets
Statement from BCBC on the authorization of the Woodfibre LNG project
Book Review: Power Density, A Key To Understanding Energy Sources and Uses
Power density—expressed in a form that accounts for the spatial requirements of energy extraction, conversion, and use—is critical to understanding paths forward for energy transitions
BCBC applauds PNW LNG Decision
The Business Council of British Columbia welcomes today’s approval of the $11.4 billion Pacific Northwest LNG processing plant by the Federal Government, which comes after a thorough environmental assessment process.
Letter to the Honourable Catherine McKenna re Pacific Northwest LNG
On September 22, 2016, Greg D'Avignon, President and CEO of the Business Council wrote to the Honourable Catherine McKenna, Minister of Environment and Climate Change, regarding the Pacific Northwest LNG project.
New Regional Effort Aims to Establish Cascadia Innovation Corridor
British Columbia and Washington leaders come together to strengthen collaboration, create cross-border opportunity
Finlayson Op-Ed: How Canada can put its economy back in gear (Troy Media & The Province Newspaper)
“Building an economy that works for the middle class” is the preferred mantra of the Trudeau government now ensconced in Ottawa. Rarely these days does one encounter a federal government news release that fails to tout the benefits of a thriving middle class. The term “middle class” itself, however, is never defined, making it difficult to know if progress is being made in delivering on what the government describes as its most important objective.
On at least some measures, the middle class in Canada actually looks to be doing reasonably well. Take incomes, for example. From 2010 to 2014, the total pre-tax income of the typical family – defined, statistically, as the “median” family consisting of two or more related persons – rose from $80,900 to $87,000, in constant 2014 dollars. This amounts to an increase (after inflation) of 7.5 per cent over four years – a decent gain.
SPEAKING NOTES: Trans Mountain Ministerial Panel Review Economic Roundtable
Greg D'Avignon's presentation to the Trans Mountain Ministerial Review Economic Roundtable on August 16, 2016
Finlayson Op-Ed: Green energy future a long way off (Troy Media and The Province)
Some Canadian environmental groups claim the world is in the midst of a dramatic move toward carbon-free forms of energy. The implication is that Canada – one of the world’s largest producers of oil and natural gas – should quickly abandon the fossil fuel economy and quickly embrace renewable energy as the only pathway to a prosperous future.
Important shifts in energy production and consumption patterns are undoubtedly underway. However, the timing of any overall global energy revolution is likely to be considerably slower than many believe. Rising global energy demand, and the tens of trillions of dollars of embedded capital that underpin current energy production and consumption systems, are among the factors that stand in the way of rapid change.
The International Energy Agency on Canada
Every year the International Energy Agency reviews the energy sectors of five OECD countries. The second report for Canada, Energy Policies of IEA Countries Canada 2015 Review, was recently published, drawing on data up to 2013. Overall, the IEA’s analysis provides a valuable summary of the history, context, opportunities and challenges around energy production and use in Canada, including the impacts of changing global oil prices.
Is BC Really a Laggard on Climate Change?
In recent months, a number of groups have been advancing the message that BC is falling behind other jurisdictions in adopting policies to address climate change.
We find the claim deeply misleading.
On any reasonable assessment, BC remains a North American pacesetter on a number of important aspects of climate policy, with industry and government continuously improving policies and operational efficiencies through the availability of new innovations.
D'Avignon Op-Ed: Trade deals, infrastructure, national climate framework key for B.C. business (The Hill Times)
Today, some 40 business, First Nations, and community leaders from British Columbia are in Ottawa. Here’s how we can work together with the federal government.
D'Avignon Op-Ed: LNG deals good for jobs, economy, climate (The Vancouver Sun)
Recent news that two agreements have been reached for the production and sale of made-in-British Columbia Liquefied Natural Gas (LNG) adds to the momentum of positive job and economic growth in the province. These export agreements also underscore the role that B.C. and our locally-based companies are playing in providing cleaner burning fuels to growing markets abroad as jurisdictions in Asia and elsewhere transition over time to lower-carbon energy sources.
British Columbia is home to some of the largest and most productive natural gas fields in the world. Since the late 1980s, we have benefited enormously from this resource in terms of jobs, investment and government revenue. For example, when natural gas prices were high in 2005-06, the provincial government collected enough gas royalties to fund the entire post-secondary education system.
RELEASE: BCBC supports NEB decision which provides pipeline safety, supports the BC and Canadian Economies
Thorough process provides next step in achieving needed market access
The Business Council welcomes the decision of the National Energy Board (NEB) today approving, with conditions, the Trans Mountain pipeline project.
“The approval of this project, after a long and thorough independent process – and despite opposition from some in and outside the province – is a positive development. The NEB carefully reviewed the technical, environmental and social evidence and concluded that the project is safe and provides important benefits for BC and Canada,” said Greg D’Avignon President and CEO of the Business Council of BC. “The Trans Mountain pipeline expansion is of vital importance to the Canadian energy sector – our country’s number one export industry. It is also important for BC, which depends on Alberta for transportation fuels and benefits from Kinder Morgan’s operations in this province through tax contributions, jobs and spin-off business for small and large companies.”
Investment Survey Signals Continued Weakness in Capital Spending
Statistics Canada’s just released capital expenditure survey confirms that the negative fall-out from sluggish energy and materials markets continues to take a toll on business investment across the country.
Peacock Op Ed: Consideration for Transit: More People are Settling in Surrey than any other B.C. City (Surrey Business News)
Which B.C. city has experienced the largest population increase since 2011? Most readers will not be surprised at the answer: Surrey. Between 2011 and 2015, more than 43,000 additional people became residents of Surrey, which translates into an average of 900 more people per month over the past four years. During the same period, the City of Vancouver recorded the second biggest absolute population gain of just over 29,000, followed by Coquitlam (+14,000), Richmond (+11,700) and Langley District (+10,600).
Finlayson Op-Ed: Commodity Slump weighing on Canadian and global economies (Troy Media)
The ongoing decline in the U.S.-dollar prices of most internationally traded commodity products has hit Canada’s economy hard, depressing incomes, triggering layoffs and capital spending cuts by hundreds of resource companies (and their suppliers), and hurting business and consumer confidence across swathes of the country. It’s important to realize that the commodity carnage isn’t restricted to oil. It’s also affecting natural gas, coal, base metals, potash, various industrial raw materials, and some segments of the agri-food sector. Lumber prices have also beaten a hasty retreat in recent months.
D'Avignon & Finlayson: If we don't supply oil, others will (Vancouver Sun)
It is time for a mature conversation on oil exports, against the backdrop of the economic reality we face in Canada and around the world. Simply put, the evidence confirms that all of us will continue to need all forms of energy, including oil, over the coming decades. For Canada, the key question is whether we want to have the option to safely export our oil to global markets other than the United States, currently our only customer, and which pays less than the world market price and requires less of our product each year. In 2013, energy made up one-quarter of Canada’s merchandise exports, of which oil and gas constituted the vast majority. Finding ways to access the world market for our country’s biggest export industry should be a priority for all governments in Canada.