Canada is a model in the management of its natural resources. Third-largest electricity producer among OECD countries, third-largest gas producer in the world, and seventh-largest oil producer in the word, Canada is one of the rare countries in which the discovery of natural resources does not lead to economic or political instability.
No instability, and no waste. While the exploitation of natural resources has led to an increase in GDP of 47.8% between 1990 and 2004, end use has only increased by 22.9%. This low increase is due to Canadian determination to minimize waste and maximize energy efficiency. Nevertheless, the exploitation and close monitoring of energy resources is not synonymous with massive job creation.
In 2005, the number of jobs in this sector was 250,115 (not including gas station employees and petroleum wholesale sector jobs). So the number of jobs has been declining for several years now. It has even set a sad record in Quebec, representing only 5.6% of total jobs in the Quebec economy, its lowest rate since 1996. This recession is the result of changing needs. Nowadays, the energy sector has well-paid jobs, but mainly for highly qualified professionals with advanced skills in the application of technology.
In Canada, jobs in the energy and natural resources sector are distributed in four areas: forests, minerals, energy and geomatics and geosciences. Each of these areas includes a multitude of professions from the lumberjack to the engineering specializing in oil well drilling.
One of Canada's big advantages over other energy-producing countries is the diversity of energy sources and their distribution. Not only does the country have oil, gas and water in abundant quantities, but these sources are distributed throughout its entire territory. Quebec's water power and Alberta's oil sands are two examples.
Quebec hydro power
More than 95% of the energy generated in Quebec comes from hydro power. Hydro-Québec, the crown corporation in charge of harnessing water power and transforming it into energy, employs 23,000 people, with another 17,000 jobs directly or indirectly dependent on this sector. Aware of the importance of hydro power for the economy, the Quebec government is investing massively in this sector. In 2007, it made available $25 billion over a period of nine years to build new generating stations. This construction will create 10,500 direct jobs and 70,000 indirect jobs across the province.
Alberta's oil boom
The discovery of the world's second-largest oil reserves in Alberta has provoked a stampede towards the black gold. For three decades, the province has been the job creation leader in Canada. In 2003, the employment rate was 69.6%, with the number of jobs increasing by 48,000 in the same year. Seventy-five per cent of jobs in the oil and gas sector are located in Alberta. The result is that there are more jobs available in Alberta than people to fill them, with the Alberta government predicting a labour shortfall of 100,000 jobs over the next decade.
Renewable energy: a golden opportunity
Harnessing renewable energy sources is the biggest challenge facing Canada in the years to come. This energy represents 17% of Canada's primary energy supply, with its proportion increasing from one year to the next. According to Natural Resources Canada, wind and solar power are the renewable energy sources with the highest growth potential over the short and medium terms. Not only because the public sees them as an alternative to polluting energy sources, but especially because its availability (in the case of wind power) only depends on the wind. In 11 years, wind power generating capacity has increased tenfold, from 2,000 MW in 1990 to 20,000 MW in 2001. In 2002, 50 companies were directly linked to wind power, representing 300 jobs and annual sales of $18 billion. Industry Canada forecasts that 13,000 jobs will be created in this sector by 2012.
Interview with George Eynon, Vice-President of the Canadian Energy Research Institute (CERI), Calgary
Is the growth of this sector linked to the quantity of Canada's resources?
No, I don't think so. The level of demand in North America influences this sector's growth. Ninety-nine per cent of our energy exports are to the U.S. Accordingly, a decrease or stabilisation of the domestic U.S. market, as is the case now, results in a slow-down in the sector.
Which factors does the Canadian energy sector need the most?
The role of technology is increasingly important, in the exploration and production sectors in particular. With the discovery of the second-largest oil reserves in the world in Alberta, activity in the sector has greatly increased and led to the hiring of a large labour force to design mega projects. The replacement of this labour force may cause serious problems, however. In a few years, as is the case for many sectors, baby boomers will retire. For now, since there are not enough graduates to take their place, we will have to rely on the immigration of qualified workers to compensate for these massive departures. The Canadian energy sector must face the challenge of effectively combining the use of technology and labour.
How do you see this sector's future? Growth or stabilization ?
We will most probably reach a plateau of stabilization of activity in some 20 years, which will be due to the decrease in the cost-effectiveness of the equipment and the difficulty of finding qualified labour. International competition will also heat up in this sector.
What are the coming challenges of the Canadian energy sector ?
We will have to focus our efforts on the environmental impacts of this industry. Moreover, maintaining a high availability of inputs (equipment, material and labour) at a reasonable cost to develop major projects, in spite of the strong inflationary pressure of energy prices, will be a major challenge.