Julie Dill: “Energy Is Good for the Region…[and building]
a Strong and Sustainable Future”
Natural Gas Is Here, And
With It Energy Will Flow to the Great Lakes Region Increasing Not From Alberta
but from the Great Lakes Itself and the Northeast.
Julie Dill discussed the exciting times for Natural Gas in
the Great Lakes region. With UticaShale, “it’s abundant, it’s clean, it’s versatile” and can be used to build
stronger communities and nations.
But for this to be successful, Julie stressed the need for a
health bi-national relationship to handle power generation throughout the next
decades. She then reviewed other energy
projects with cross-border dynamics.
In particular, she has shown how the cross-border energy relationship
has changed, look at Spectra’s longstanding Dawn Hub
to its emerging NEXUS
Gas Transmission Project.
Julie Dill:
Natural gas dynamics “are ongoing tremendous transformational
shifts, much like the Saint Lawrence River and Great Lakes that have brought us
here today.”
“[M]ore than a century’s worth of supply…[or] even multiple
centuries of supply.”
“Canada’s sole market for export gas [the United States] now
has more natural gas than they do.”
“How do we respond to the changes and make the most of the opportunities
before us?”
“[W]hen it comes to energy no nation is an island…we’re
deeply connected and stronger together.”
Milos Barutciski: The Great Lakes Region Is Not Exploiting Its
Unconventional Natural Gas Energy Resources-North American Losing Its Competitive
Advantage and Region Is Missing the Boat on Economic and Job Growth
The Great Lakes Region
is missing out on Compress Natural Gas, which not only could propel North
America’s energy advantage, but deliver prosperity to the region.
U.S. verses other advanced economies are paying a 1/5 – 1/3
less for energy. “It’s a huge competitive
advantage.” The source: “unconventional sources” like fracking. And the Great Lakes region is a huge player
in this unconventional energy that gives North America this competitive
advantage.
What’s the next way in unconventional energy: Compressed Natural Gas vehicles.
“Compressed natural gas powers engines for vehicles [of all
types]…this technology is being commercialized by American companies, Canadian
companies…What is fascinating for me…a compressed natural gas vehicle reduces 10-30
percent reductions” in emissions.”
The problem: “What I
don’t see nearly as much as is U.S. and Canadian companies incorporating the technology…to
both reduce the cost of the energy…and, secondly, it also reduced emissions.”
“Astoundingly few” pilot projects to harness the advantages
of compressed natural gas.
Why? “A lot of
reasons…why that sector has both potential employment and export offshoots [is
one] that we’re not exploiting.”
So what's the solution? For us to get to CNG
vehicles we need the distribution centers that can use them. If industry leads the way, the government
must step in with smart regulation. And
if government leads the way, “but people say industrial policy is not a good
thing.”
But we need leadership, or this region will miss the boat on
incredible economic growth.
Note: Gov. Blanchard did note that Chrysler is moving on CNG vehicles in Europe; so, while more needs to be done, CNG has not been completely forgotten by America's auto industry. Then again, as Barutciski, Chrysler's shift towards CNG derived from its partnership with Fiat, an Italian car manufacturing that is leading the way on CNG.
Dr. Sara Seck: Balancing the Great Lakes Energy Potenial
With Great Lakes Water Stewards
Dr. Sara Seck
challenged conference participants to think through the impacts of North
America’s energy choices. In short, she
brought “the global commons” into the discussion of North America’s energy
future.
Can energy think
outside of the immediate future? “We
also have to think about..future generations.
Are we making decisions for our future…or 7 generations ahead?”
Does Canada and
America’s legal structure properly incentivize long-term, sustainable thinking?
“In Canada and the U.S. we do not have a constitutional protection for right to
the health environment.” Interestingly
dozens of other countries do have this protection.
“A Social License to
Operate” Is Needed. “Long-term
sustainability…must depend upon this integration [of economic, environmental,
and social groups].”
Regulation Spur
Energy Industry? Emerging markets “would
be appreciative of the innovation products we could offer.” The impact?
Better regulatory standards could make us the leader for new market
penetration.
Jatin Nathwani: We Need to Leverage Canada’s Green Energy
Advantage To America, and with it North America, to Have Energy and Lower
Carbon Emissions
Presented “Towards a Low Carbon Energy Future: Case for an Inter-Regional Trade Strategy,”
that highlighted Canada’s green energy advantage, the energy interconnectedness
between Canada and the United States that allows electricity trade but does not
incentivize it, and that with certain policy discussions the business of
electricity trade could lower energy prices and carbon emissions. What America and Canada have to do: Make energy hubs, remove transmission limits,
and upgrade their shared electrical transmission network.
Main takeaway: Over 50-70 years, North America can push coal
out of the energy using Canada’s electricity advantage and North America’s
natural gas advantage. But there are
considerable obstacles that keep total electricity trade between Canada and the
United States only a small percent of their total energy trade.
Key to North America’s Energy future: Trade.
“Enhanced electricity trade between Canada and US offers a
strategic environmental and economic advantage that would benefit the entire North
America economy.”
“Large scale trade in
electricity, across provincial and national boundaries, is a cost effective mechanism
for alignment of climate change policies require to transition to a low-carbon
energy economy.”
Why?
“Access
to a variety of fuel sources…reduces high and volatile prices.”
“Reserves
can be shared to address supply peaks or outages.”
How to make it cost-effective? Only North America integrates its power
strategy and becomes able to shift energy resources throughout the region
differing energy markets.
The problem: “A
dramatic shift away from the ‘provincial self-sufficiency paradigm,’ and policy
discussions to transform America and Canada’s already extensive electricity
ties by increasing transmission limits so that Canada’s clean energy can be
expanded and feed into North America through “interregional hubs” in Canada and
the United States.
One example: Muskrat
Falls. “We can do a lot more” if we
use the right infrastructure approach.
Background:
Pam Nowina, Executive Lead for Energy Policy, Mowat Centre
(chair)
Mr. Milos Barutciski, Co-Head of International Trade,
Bennett Jones LLP
Dr. Sara Seck, Assistant Professor, Western University Law
School
Dr. Jatin Nathwani, Executive Director, Waterloo Institute
for Sustainable Energy and University of Waterloo Professor
Julie Dill, President and CEO, Spectra Energy Partners
Since the Oil Embargo of 1973, we have been jerked around by OPEC. It’s been humiliating to watch our last eight presidents embarrass themselves railing at OPEC, but failing to make any progress towards cutting the OPEC chain. Now with natural gas, we can cut that chain. And we should, just because we can. We can’t bring peace to the Middle East, but we can finally tell OPEC, “You keep your 4 million barrels a day. We will keep our 350 million dollars a day.” Whether you were a fan of President Ford or President Carter, it would be immensely satisfying to cut that OPEC chain. All we need is for 23% of our cars to run on compressed natural gas (CNG). And for national pride: Iran has 2.9 million cars (23% of its fleet) running on CNG. If Iran can do it, surely we can do it. We will even save money. Two year pay back.
ReplyDelete