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Energy Sector
The energy sector is a leading economic force in
Calgary, a unique city in Canada where Canada�s oil and
gas energy sector is concentrated.
The energy sector is composed of oil and gas companies,
coal and electrical power generation companies, as well
as pipeline and power distribution companies. In the
late 1990�s deregulation in the energy sector in Alberta
removed boundaries between producers, sellers and buyers
of energy.
New technological advancements in the energy sector made
possible the exploitation of non-conventional resources
to produce synthetic oil from the Alberta Oil Sands (located
near Fort McMurray, in Northern Alberta) and to produce
natural gas from coal deposits.
Advances in electrical power technology made possible
more efficient use of coal, natural gas and oil fuel in
co-generation plants throughout Alberta. Co-generation
plants use the energy from burning gas, coal or oil fuel
to heat water and create steam to run the electricity
turbines. The efficiency of the co-generation plants
resides in the reuse of the cooler waste steam redirecting
it as hot water to heat nearby communities or nearby
industrial operations.
The energy sector contributes to growth in other
sectors, generating employment in related business
services, high technology/information technology and
manufacturing.
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What types of trades and professional occupations are in
the energy industry sector?
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Oil and Gas Industry
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Coal � Electric Energy
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Major Long-Term Energy Projects
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Trends that Impact on the Energy Sector
What types of trades and
professional occupations are in the energy industry
sector?
The energy sector in Alberta employs one in every six
Albertans. A list of specific occupations in the energy
sector, including utilities, is available at the website
of the Alberta Learning Information Service - ALIS:
select the option:
Occupations by Industry Search - Oil and Gas, Utilities.
In addition to the specific list of occupations in the
energy sector, there is a large number of professionals
and support staff working for energy companies in more
general areas such as: finance and accounting,
information technology, health and safety, human
resources, marketing and sales, public relations. These
professionals and support staff have developed work
experience that is particular to the needs of the energy
sector. For occupations such as accounting and health
and safety, there are specific training courses designed
for the oil and gas industry.
Oil and Gas Industry
The City of Calgary forecasts an annual average
employment growth of 0.1% for the oil and gas industry
(including mining), for the period: 2003 to 2009. Some
additional growth in employment opportunities may be
expected after the year 2005, as a consequence of
increasing retirements. A new trend of people continuing
to work after the retirement age may lower the number of
expected vacant positions due to retirement.
The oil and gas industry is one of the largest employers
in Calgary, maintaining the third highest position in
the number of career ads posted in the
Calgary Herald
newspaper during the first nine months of the 2003.
Increasing work opportunities in this industry are
fuelled by relatively stable higher oil and natural gas
prices.
Oil and gas production achieves full economic value
through exports to large energy markets in Western and
Midwest United States. This is the role of major oil and
gas pipeline companies operating in Western Canada,
linking to United States pipeline hubs.
Pipeline companies that have offices in Calgary, are
as following:
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Alliance Pipeline Ltd.
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ATCO Pipelines
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BP Canada Energy Company � Canada
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Enbridge Pipelines Inc. � Canada, Shipper Services in
Calgary
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Foothills Pipe Lines Ltd.
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TransCanada PipeLines Ltd.
Coal � Electric Energy
Alberta has 70% of Canada�s coal reserves and produces
each year 30 to 35 million tons of coal. Therefore, in
Alberta, a province with a limited amount of water, coal
is one of the most important sources for electric power
generation. �Approximately four-fifths of the coal
produced in Alberta is used as fuel for electricity
generation in the province, to heat buildings in
agricultural operations and as an important source of
energy in cement manufacturing and other industrial
processes�. Source:
Alberta Department of Energy
One of the largest Canadian coal producers has several
coal mines in Alberta and has the corporate head office
in Calgary:
Fording Canadian Coal Trust.
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2003 FACTS OIL AND GAS, MINING: Calgary Economic
Region Operations
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5.6 % of the total employment demand was in oil and
gas, including mining
35,400 people represent the total employment demand
in the oil and gas, in Calgary
0.1 % annual average employment growth rate
forecasted for Calgary operations
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READ MORE�Oil and Gas Industry Overview � Exploration,
Production and Pipelines
*Canadian
Energy Pipeline Association
*Canadian
Association of Petroleum Producers
*Government
of Alberta Department of Energy
Major Long-Term Energy
Projects
Most of the long-term projects in the energy sector are
taking place throughout Alberta, and one of the most
active regions is the Alberta Oil Sands project near
Fort McMurray, in Northern Alberta.
As domestic needs for electric energy are growing, it is
anticipated that the electric power grid will continue
to expand based on corporate investment. Since 1998 new
electrical power generation increased by about 30% the
capability of the power generation system in Alberta,
representing more than $2 billion in private investment.
In addition, there is over 5,400 MW (Mega Watts) of new
capacity that has been proposed.
In Alberta, the oil and gas industry, including mining
recorded a lower unemployment rate of 3.6% when compared
to the 4.6% unemployment rate in all industries (October
2003).
READ MORE�Alberta Economic Development -
Inventory
of Major Alberta Projects Oil, Gas and Oilsands
Trends that Impact on the
Energy Sector
Trends with Positive Impact:
*Demand of energy continues to grow, increasing reliance
on oil and gas and other fossil fuels in North America
and globally.
*Future expansion of power plants to accommodate energy
demand in Alberta and exports.
*Technological advancements allow for economic
production from the Alberta Oil Sands (Fort McMurray)
and coal bed methane.
*Record low interest rates increase affordability for
capital spending on equipment, pipeline construction and
plants.
*High value of the Canadian dollar combined with high
oil and gas prices resulted in record revenues for oil
and gas companies.
*Desire to increase reliance on northern oil and gas
resources may open opportunities for Albertan companies
to produce and deliver natural gas to United States
(Alaska pipeline).
*Availability of a highly educated workforce for the
energy sector: Calgary has the highest educated
population in Canada with more than 60% of people with
post-secondary education
Trends with Negative Impact:
*Higher uncertainty about the global political and
economic outlook, and in particular the growing
instability in the oil-producing region of the Middle
East
*The high value of the Canadian dollar combined with
high-energy costs, create a difficult economic climate
for Canadian manufacturers.
*Globalization of businesses and especially the
migration of Canadian and American manufacturing
operations to other parts of the world to allow for lower
production costs.
*Impending gas emission controls and other regulatory
measures may contribute to increasing extraction and
refining costs in the energy sector.
*Declining reserves of conventional oil and natural gas
in Alberta.
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