Report from the President

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1 Report from the President July 2017 This mid-summer President s Report provides you with: updates on two of our ongoing initiatives to commemorate Canada s 150 th anniversary, information on topics for energy policy research supported by the Energy Council at the Waterloo Institute of Sustainable Energy, and details on three upcoming Energy Council events in August and September: Meeting of US and Canadian Energy Services Industry Associations, August 9, Washington; Annual Energy and Mines Ministers Conference, August 13 15, St. Andrews, New Brunswick; North America Region Energy Forum, September 12, Santa Fe, Mexico. Young Energy Professionals Program Moving Ahead The eight participants in the Energy Council s Young Energy Professionals program and one of the three Canadians involved in the World Energy Council s Future Energy Leaders program met on July 26 by conference call to map out the first set of activities as this new program gets up and running. Young Energy Professionals from four of our member organizations have come forward to date: from Deloitte, KPMG, SaskPower, and Siemens. The good news this week is that a ninth person has joined the program. The discussion led to a number of suggestions which will guide the first few months of activities: Benefits expected from the program are: learning from the participants about their views on energy issues and their expectations for energy futures; providing an opportunity for the participants to meet and engage with Canada s energy leaders at the Energy Council s events and activities; and third, contributing to the development of the next generation of energy leaders. The participants are welcome to attend our events at a reduced registration rate; Making connections with similar programs which engage young professionals planned by other organizations and also within the home companies of the participants; Attending and speaking at others events and arranging videoconferences with other organizations were suggested as good ideas to pursue; Preparing an article for the Energy Council s series to commemorate Canada s 150 th anniversary. A conference call will be arranged in early August to discuss the expectations and possible topics; Organization of events for the participants by our Member organizations; and, Participating as members of the Energy Council s standing committees, such as the Communications, Energy Policy Research, Program, and Studies committees. We invite all members of the Energy Council of Canada to identify young professionals in their organizations who would be interested in participating in the Young Energy Professionals program. Please contact me if you have any questions about this new program for 2017.

2 2 Articles by Canada s Energy Leaders Commemorating Canada s 150 th Anniversary Next Postings on September 15 One component of the Energy Council s commemoration of Canada s 150 th anniversary of Confederation is the posting of articles by Canada s energy leaders on the general theme Energy in 150 and Beyond. The first five articles were posted on June 30 just before Canada Day 2017 at Many thanks to the authors for their interesting and informative articles. You are invited to contribute an article to this series. Please contact the Ottawa office for the author s guidelines. Energy in 150 and Beyond The next posting is planned for September 15. Energy Council Fellows, Three Research Topics Announced We have just heard from the managers at the University of Waterloo s Waterloo Institute for Sustainable Energy (WISE) office about the three research topics they have selected that will be the focus of study by the PhD. students receiving support from the Energy Council of Canada in : Carbon Management: Bridging to a Lower Carbon Energy Future, Methodology for improving the net environmental impacts of new buildings through product recovery management. The aim of this research is to add a Life Cycle Assessment (LCA) perspective, to the decision-making methodology for adaptive reuse in order to optimize the environmental and economic performance of this process. Intra-household Dynamics and Residential Energy Conservation Policies The proposed research will review and assess the contextual and social factors found to, or expected to, affect residential energy consumption and conservation at the intra-household level, and propose how intra-household factors might be applicable to better understanding the impact of residential energy conservation policies on energy use patterns in Canada and to improving the design of existing or proposed policies. Renewable Energy to Advance Off-Grid Community Sustainability: A Comparative Energy Policy Analysis between Alaska and Canada s North The first phase of the project will consist of a comparative renewable energy [RE] policy analysis between Alaska and Canada s territories. This phase of the project aims to identify policy factors which have successfully encouraged RE development in remote/off-grid communities throughout Alaska and to generate policy recommendations for Canada s North. The second phase of the project will consist of an empirical analysis focusing on how RE projects contribute to the sustainability of Northern communities. We will be reviewing these projects, and the status of the work by the students supported previously by the Energy Council, during the annual review meeting on November 17 at the University of Waterloo. The students currently studying as Energy Council Fellows are keen to engage with mentors working in the energy sector in our Member companies. A mentorship arrangement can be of real benefit to the student and to the mentor and their organization. The link and password to the mentor site are available from the Ottawa Office

3 3 Meeting of United States and Canadian Energy Services Industry Associations, August 10, Washington The Petroleum Services Association of Canada, Barry Worthington, Executive Director of the United States Energy Association, and myself have organized a meeting of associations representing the energy services sector in the U.S. and Canada to be held in Washington, DC on August 10. The purpose is to develop a strategy for informing the US Administration of the mutually-beneficial crossborder business relationships that exist between the energy services industries and the potential impact on the energy services sector from such things as BAT, Buy America, NAFTA changes, etc. We hope that the US energy services associations will be able to influence the Administration about the benefits arising from the status quo and the potential impacts of emerging policy initiatives. The workshop will bring together industry associations representing their members in the energy services sector from Canada and the U.S. and also representatives of the major energy industry associations. Confirmed speakers as of July 31 include: U.S. Energy Associations: Elizabeth Craddock, International Association of Drilling Contractors Jean Gould, Petroleum Equipment and Services Association Kenny Jordan, Association of Energy Service Companies Gerardo Uria, American Petroleum Institute Dena Wiggins, Natural Gas Supply Association Canadian Energy Associations: Mark Salkeld, Petroleum Services Association of Canada Mark Scholz, Canadian Association of Oilwell Drilling Contractors Kory Zwack, Canadian Association of Petroleum Producers Chris Bloomer, Canadian Energy Pipeline Association Tim Egan, Canadian Gas Association (tentative) Think Tanks: Hillary Novik Sandberg, Eurasia Group Benn Proctor, Wilson Centre. The draft workshop program starts with on opening presentation on the latest US policy developments, followed by remarks from the heads of energy services associations and energy associations from the United States and Canada, insights from the latest research, and then a facilitated discussion in the afternoon to develop an action plan

4 4 Annual Energy and Mines Ministers Conference, August 13 15, St. Andrews, New Brunswick We are looking forward to a first-ever interactive session with Canada s energy ministers at the 2017 Energy and Mines Ministers Conference (EMMC) being held in St. Andrews, New Brunswick on August To address the conference s Clean Growth theme, an Energy Brief entitled Clean Competitive Energy: Building Canada s Future has been submitted through a joint effort by the Canadian Association of Petroleum Producers, the Canadian Electricity Association, the Canadian Gas Association, and the Energy Council of Canada. The Energy Brief identifies five issues that we see as critically important to building Canada s energy future: Ensuring the competitiveness of Canada s energy sector and the competitiveness of companies that use energy commodities and energy services needs to be a top-of-page consideration for policymakers. The energy sector makes a very significant contribution to Canada s GDP, to our balance of trade, to jobs and to investment. Manufacturing and petrochemical industries depend on affordable energy supply as a key component of their operations. We recommend policy-makers careful consideration of the impacts on competitiveness for the energy sector and for companies that rely on energy and energy services. Positioning the energy industry in the evolving Canada U.S. energy relationship, in a manner that ensures the mutually-beneficial energy trade, cross-border collaboration by energy services industries, and two-way energy investment, is an immediate focal point for governments and industry. Although uncertainty remains around the details of upcoming NAFTA negotiations and policy initiatives such as the Border Adjustment Tax and Buy America, it is essential that we sustain the excellent efforts to date by federal, provincial and municipal governments, and industry to inform and build support with their U. S. counterparts. Fostering innovation to cost-effectively drive further improve the environmental performance of the energy system. There is no question that innovation is an essential pathway to find practical, and cost effective, solutions to environmental issues and crafting ways to deliver clean energy supply and clean energy services in the future. Recognizing that many programs and initiatives are in play to strengthen innovation in the energy sector, we call on governments to develop effective and creative mechanisms to facilitate closer collaboration amongst the players in the innovation system. Moving ahead on major energy projects which have been recently approved must be based on an inclusive and robust dialogue involving Indigenous communities and relevant stakeholders. We see such next steps as an opportunity to apply what has been learned about working in a manner based on honour, trust and respect with Canada s First Nations and also communities impacted by the project. We see this as a key ingredient to Canada s nation-building efforts. Furthering the dialogue on the future process for assessment of environmental and other impacts associated with major energy projects. Looking ahead, we will be working with governments by providing industry s feedback on reports which propose reforms to processes involved in assessment of impacts from energy projects and modernization of regulatory practices. Bridging these five issues are three broader themes which have emerged during our preparatory discussions. These themes will be the guiding elements for follow-up to the outcomes from this year s EMMC discussions

5 5 First, is deepening the collaboration between policy-makers and industry. We believe that each has an important role to play and that the best results will be achieved by working together. The interactive session on August 14 is a further step in this direction. Second, working more closely with Canada s First Nations is critically important through relationships based on honour, trust, and respect. We believe that this approach will foster genuine, value-based cooperation between Indigenous Peoples, governments, and energy companies. This theme is most relevant for two of our key issues - the next steps on major energy projects and crafting a comprehensive and inclusive approach to assessment of all aspects of energy projects. Third, we believe that we must never lose sight of consideration of what is in the best interests of Canada, all things considered. Governments always have this as an over-riding consideration for their jurisdictions; we believe that a national perspective is needed by all governments and industry as energy decisions are made. As our Energy Brief concludes, without this outlook, Canada risks becoming a nation that cannot build a clean, competitive energy future. The energy sector is a key contributor to Canada s economy, to our balance of trade, to the flow of revenue to governments, and to employment and investment. This creates an imperative to pay close attention to the energy issues and opportunities at hand. We see action on each of the five issues and follow through on the three broader themes as key elements in moving ahead. North America Region Energy Forum, September 12, Santa Fe, Mexico The North America Region Energy Forum has been organized jointly by the Mexican World Energy Council Secretariat, the United States Energy Association, and the Energy Council of Canada. The timely theme of this annual trilateral event is Regional Collaboration on Climate, Clean Energies and Environmental Issues. Four topics will be pursued in panel sessions: Medium and Long-Term Energy Scenarios for North America; Technologies for GHG Reduction; Climate Change Policies; and Energy Trade in North America The Forum will be opened by Mexican President Enrique Peña Nieto. Bob Hanf, Executive Vice President, Stakeholder Relations and Regulatory Affairs, Emera Inc., and North America Region Vice Chair, World Energy Council will open and close the event. An excellent line-up of co-hosts and panelists will address the four topics. Confirmed Canadian speakers include: Christyne Tremblay, Deputy Minister, Natural Resources Canada; Colin Andersen, Chair, Energy Council of Canada; Guy Bruce, Vice President, Special Projects, SaskPower; Siegfried Kiefer, Chief Strategy Officer, ATCO Ltd. & Canadian Utilities Limited, President, Canadian Utilities Limited; Tom Scarinci, Global R&D Leadership, Siemens Power and Gas Division; and, Oskar Sigvaldason, President, SCMS Global

6 6 They will be joined by colleagues from the United States and Mexico: Francisco Barnes, past Deputy Secretary for Planning, Energy Secretariat and past Commissioner of the Energy Regulatory Commission; Gerry Cauley, President & CEO, North American Electric Reliability Corporation; Ged Davis, Executive Chair, World Energy Council Studies Group; Jaime Hernandez, CEO of CFE, the Mexican National Utility, President, Mexico s World Energy Council Secretariat; Mike Howard, President, Electric Power Research Institute; Rodolfo Lacy, Deputy Secretary for Planning. Environment and Natural Resources Secretariat Adam Sieminski, Centre for Strategic and International Studies, formerly Administrator, US Energy Information Administration; Edgar Ubbelohde, past Chairman of the Board ( ) of the Mexican Chamber of Electrical Manufacturers; and, Pamela Venzke, Managing Director, Global Government Affairs & Policy, GE Power. Following the Forum, the World Energy Council will host the World Energy Leader Summit (WELS) on September 13. Further details will be available soon on the WELS program. An invitation has been sent to all members of the Energy Council of Canada and those in our energy community to attend this trilateral event. Outreach on Behalf of the Energy Council In keeping with the season, it was a pleasure to represent the Energy Council of Canada at the Fourth of July Garden Party hosted at the residence of the incoming US Ambassador and the Fête Nationale hosted by the Government of France on July 14 at the Ambassador s residence. With best wishes for a great summer, Graham Campbell President, Energy Council of Canada - 6 -

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