Transcript CLF - tier.org.tw

Canadian Energy
Emergency Response
›› APEC Energy Working Group
Vancouver, Canada 9–13 May 2011
2
Purpose
 To describe Canadian government responses to
domestic and international oil supply disruptions
 To indicate the authorities available to the
Minister of Natural Resources Canada (NRCan)
 Outline of current activities
3
Under Canada’s Constitution Act

Federal government
 Policies of national interest
(economic development;
security; and S&T)
 Frontier lands resource
management
 Corporate taxation policies
 Management of uranium and
nuclear power
 International and inter-provincial
trade, commerce and
environmental impacts
 National Energy Board
(NEB) as Federal Regulator
 Duty to consult First Nations

Provincial governments
 Resource ownership within
provincial land borders
 Manage pace and extent of
resource development
 Manage and regulate intraprovincial energy infrastructure
 Intra-provincial electricity and
natural gas utility regulation
 Manage intra-provincial trade,
commerce, and environmental
impacts
 Taxation and royalty powers
4
Shared powers …
 Federal and Provincial governments
 Work together to get overall policy and fiscal framework
consistent and stable
 Share responsibility for environmental assessments of major
projects where federal ‘triggers’ are impacted
 However, provinces can, amongst other things,
 Regulate commodity prices within their borders
 Control the rate of resource extraction - surge production and regulate use
5
On-Going Security Activities
 NRCan works with:
 The private sector, provincial and territorial governments,
energy regulators, and industry to take the steps necessary
to assure the integrity of critical energy facilities
 The U.S. and Mexico on international initiatives for North
American critical energy infrastructure protection and
emergency management
 Public Safety Canada to implement the National Strategy
and Action Plan for Critical Infrastructure
6
Emergency Management in Canada

The Emergency Management Act requires each Minister to identify
risks to their responsibilities and develop plans to mitigate those
risks

Public Safety Canada’s Federal Emergency Response Plan (FERP)
coordinates a whole-of-government response during an emergency
for all-hazards

A FERP annex; Emergency Support Function 4 - Energy Production
and Distribution (ESF 4):
 Identifies NRCan as the lead federal department on energy emergencies
 Highlights roles and responsibilities of key stakeholders during an energy
emergency
7
Emergency Management at NRCan

Strategic
NRCan
EMPD
(Department-level)
 Provides the governance structure
and roles within NRCan during an
emergency

Operational
NRCan Emergency
Management Plans
(Sector-level)
Tactical
Standard Operating Procedures
(Branch/Division-level)
Emergency Management Planning
Directive (EMPD)
Emergency Management Plan 8:
Energy Supply Disruption (EMP 8)
 Identifies stakeholders, jurisdictions,
responsibilities, activation and
response capabilities specific to an
energy emergency

Standard Operating Procedures
 Contact lists
 Support specific situations e.g.
International Energy Agency
8
Canada is a Dual Market …
 Canada is a major net oil exporter – not required by
International Energy Agency (IEA) to hold a Strategic
Petroleum Reserve
 But… 43% of domestic refinery receipts are imported these are declining as east coast production ramps up,
and Ontario refineries process more oil sands derived
crude
 52% of oil imports come from OPEC countries (such as
Algeria, Saudi Arabia, Iraq); and,
 21% of oil imports come from the North Sea
 Adequate commercial stocks available (next slide)
9
Domestic Supply Disruption …
 At local or regional level …
 Industry has primary responsibility and works market
mechanisms and transactions to meet needs
 Price response
 Product swaps
 Imports
 Industry has commercial stocks to draw on:
 About 10 days of crude oil stocks for refineries
 About 40 days of finished petroleum product stocks
10
If Industry Cannot Manage Domestic Outage…
 Provinces are required to take all reasonable steps to
minimize energy consumption and secure alternative
energy supplies
 To do this, the province would likely have needed to
declare a state of emergency, and exercise its own
emergency powers
 If necessary, Federal emergency powers can be used but
require broad provincial consultation to ensure situation is
a “market failure”
 This situation has never occurred
11
International Oil Supply Disruption
 IEA would choose the level of response
 Canada would:
 At a minimum maintain export flows at pre-crisis levels as
part of our supply contribution
 To do this:
 For global shortages up to 2 MM bpd, Canada will decrease
domestic use through policy driven demand restraint and
other measures
 For global shortages in excess of 2 MM bpd, Canada will
contribute additional supplies to the extent possible – via a
surge or increased production and other measures
12
In Cases Of Severe Shortage,
A State Of Emergency Could Be Declared…
 If international (or domestic) shortage is severe and poses
national economic concerns, Canada can declare:
 A National Emergency under the Energy Supplies Emergency Act
and use the Energy Supplies Allocation Board (ESAB)
 ESAB has broad-ranging powers to control all aspects of crude oil and
petroleum product movements, including:
 Redirecting crude oil to ensure that all refiners experience similar shortages
 Directing companies to draw down inventories to meet a short-term shortage
 A Public Welfare Emergency under the Emergencies Act and use
Emergency Orders and Regulations (EMORS)
 The government could order the requisition, use or disposal of property
including energy commodities
13
EMORs vs. ESAB
EMORS
 The preferred response tool for an
oil disruption in a declared state of
emergency
 Only response option for natural gas
 Offers the flexibility of tailoring the
response to the circumstances
 Can be implemented quickly in
response to a higher probability
short-term disruption.
ESAB
 Commonly referred to as the federal
government’s emergency response
mechanism
 Designed to respond to the kind of
major long-term disruption of world
oil markets of the 1970s
 Regulations are quite elaborate, and
cumbersome
Depending on the circumstances and the required action, the Minister of
NRCan would suggest the most appropriate instrument to use
– the Energy Supplies Emergency Act or the Emergencies Act
14
Decision Process
Minister of NRCan would
 Provide advice to Cabinet and Prime Minister on the need
to declare an energy-related national emergency
 Given circumstances, decide which instrument should be
used –The Energy Supplies Emergency Act or The
Emergencies Act
 Recommend appropriate regulation(s)
15
Summary
 Canada has a diverse mixture of energy products to rely upon
(uranium, coal, hydro, natural gas, oil)
 Canada is a significant supplier and consumer of energy
 Canada’s federal government holds significant emergency
powers to address energy supply disruptions
 But first, we work with and encourage voluntary solutions by
Industry and the Provinces to address energy supply disruptions