Sources of Energy
| High-voltage pylons in a suburb of Athens. In the summer, if power consumption is high because of the scorching heat, the city faces blackouts. (AP Photo/Thanassis Stavrakis) |
Introduction
CBC News Online | Updated April 13, 2006
Energy is the lynchpin of modern industrial society, enabling us not only to light our homes and drive our kids to school, but to power factories and heat offices, creating jobs and wealth.
Until recently, most Canadians took it for granted that there would always be an ample, affordable supply.
A string of hurricanes that extensively damaged American oil production facilities in the Gulf of Mexico in the late summer of 2005 showed how volatile the market can be: gasoline prices spiked across the continent, hitting as high as $1.39 per litre in the wake of hurricane Katrina. That storm knocked out much of the United States' drilling capacity in the Gulf of Mexico and left southern refineries unable to turn crude oil into gasoline and home heating fuel for extended periods.
Facts and fears left some gas stations in Canada and the U.S. critically short of fuel, a reminder that the long lineups for fuel from the 1970s could return. Add to that an ever-increasing demand for oil from the world's two most populous nations – India and China - and you have a recipe for volatility.
Ask 10 oil industry experts how much oil is left in the world and you might get 10 different answers. Nobody knows for sure. What they do know is that as the world's supply of oil is depleted, there is only one way for prices to go – up.
Market turbulence is not just limited to oil. Increasingly, natural gas and electricity prices are under pressure. Most new homes in Canada rely on natural gas for heat. And in electricity-hungry Ontario, the province is relying more on natural gas to produce power as it weans itself off coal-fired generators.
Canada is slowly becoming a net importer of natural gas.
The summer of 2005 was one of the hottest on record in much of the country. That put the electricity grid under pressure in Ontario. The province had to buy power from the United States at a rate much higher than what it was charging people and businesses.
On April 12, 2006, the provincial government announced substantial increases in electricity rates – as much as 15 per cent. At the same time, the province announced rebates for people who replaced old air conditioners with newer, energy- efficient models. There would also be incentives for people to install programmable thermostats and to get rid of old, inefficient "beer fridges."
"It's cheaper to save a kilowatt than to generate a kilowatt," Ontario Energy Minister Donna Cansfield said. "Conservation is an important component of our energy plan, and this program will help reduce peak electrical demand and save energy over the hot summer months, but more importantly save people money."
As well, rising prices have persuaded governments, businesses and consumers to take a renewed interest in other energy sources, such as nuclear power, solar energy, wind power, biomass and harnessing the energy of tides. Technological advances in all those fields are beginning to make these options less costly and more reliable, although obstacles still remain.
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