Given the extent to which it permeates our daily lives, energy has come to dominate the economic, social, and political agenda in western Canada.

To improve our understanding of the role that energy plays in shaping our present and future, the Canada West Foundation is releasing a new publication on April 19th, 2012 called State of the West: Energy – 2012 Western Canadian Energy Trends.

Through a combination of data, figures and analysis, this document will provide an overview of provincial energy systems in western Canada – including the current state of energy production, consumption and other related activity and impacts. While no publication could ever hope to provide a complete picture of energy in western Canada, the goal of State of the West: Energy is to provide a one-stop information resource on the subject, informing the debate surrounding energy policy in the West, and providing context both to where we are today and where we may go in the future.

Over the course of the next few weeks I will be writing about some of the information and key findings presented in each of State of the West: Energy’s main sections. This blog looks specifically at the first of those sections – Energy Production and Reserves.

The western provinces dominate most forms of energy production in Canada. In total, 86.8% of national primary energy production in 2010 came from the West. The region accounted for 89.3% of Canada’s crude oil recovery; 97.2% of natural gas extraction; 98.2% of natural gas liquids (NGLs) production; and 100% of coal mining. Primary electricity – that which is not generated by the consumption of other fuels – is the only form of primary energy production not dominated by western Canada; about 21.6% of national primary generation comes from the West. (Refer to Figure [1])

However, these figures mask considerable differences in resource endowments and production levels across the West. Alberta is, without question, Canada’s energy superpower, producing more energy than all other provinces and territories combined. It is Canada’s largest producer of conventional crude oil, synthetic crude, natural gas and natural gas liquids, and the second largest producer of coal, behind BC.

Perhaps more importantly, Alberta is only beginning to scratch the surface of its massive oil sands reserves – one of the largest crude oil deposits in the world. Only about 10% of the crude oil in the oil sands is considered to be recoverable using current technologies, but even without counting the remaining 90%, Alberta ranks third in the world in overall crude oil reserves, behind only Saudi Arabia and Venezuela.

Although none of the other western provinces have energy deposits on the scale of Alberta’s oil sands, each has specific, and significant, resource strengths, not to mention considerable untapped potential in a range of energy types. BC is the West’s second largest energy producer, largely on the strength of metallurgical coal production and its rapidly-growing natural gas industry. BC accounted for 46.2% of all coal and 21.2% of all natural gas produced in Canada in 2010. Moreover, its estimated recoverable gas reserves are rising quickly as technological advancements unlock the potential of its on-land and offshore unconventional natural gas fields. BC is also an important producer of hydroelectricity. (Refer to Figure [2])

Saskatchewan is Canada’s third largest energy-producing province, with an energy makeup similar to that of Alberta, although on a smaller scale. Saskatchewan’s heavy oil accounts for 15.5% of Canada’s total crude oil production. The province is also home to significant coal deposits, as well as undeveloped potential in oil sands, unconventional natural gas and some hydroelectricity generation. Perhaps more important than all these, Saskatchewan holds the world’s third largest uranium reserves and is the second largest producer of uranium in the world.

For its part, Manitoba’s total energy production levels are well below those in the other western provinces. However, Manitoba has well-developed hydroelectricity capacity and is second only to Newfoundland and Labrador in terms of per capita hydroelectricity generation. Manitoba also has opportunities to further develop its crude oil industry. The Bakken formation, which on its north end straddles Saskatchewan and Manitoba, is a potentially vast deposit of sweet, light crude oil.

In addition to these conventional forms of energy, the western provinces are also exploring alternative and renewable energy sources. Alberta has the third-largest installed wind power capacity in the country and Saskatchewan is also a major producer on a per-capita basis. Although small, wind capacity in BC has more than doubled since 2010. Further expansions, including a tidal energy pilot project on Vancouver Island, are being explored.

All the components of a strong energy system are present in western Canada. The energy picture in each province is unique, but their strengths are complementary. To capitalize more fully on that strength requires closer cooperation in energy production and distribution across the West. Long-term policy goals such as reducing greenhouse gas emissions, increasing energy efficiencies, or decreasing the cost of resource extraction are best accomplished in a cooperative environment and through greater coordination of energy policies across the region.