An Analysis of Factors Affecting Energy Resources in Canada - Report

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This report provides a comprehensive analysis of the factors affecting energy resources availability in Canada, examining the country's position within the Organisation for Economic Cooperation and Development (OECD). It delves into the economic, technological, political, and climatic factors that influence energy availability, including economic problems, low technology levels, energy reservoir evaluation, political and regulatory aspects, and climatic variations. The report also explores the Intended Nationally Determined Contributions (INDCs) and the barriers hindering their implementation, such as low technological know-how, demeaning policies, unique market needs, political intervention, and low management standards. Furthermore, it investigates trends and targets in resource allocation, technological advancements, and socioeconomic impacts, providing a detailed overview of the Canadian energy landscape and its challenges.
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Factors Affecting Energy Resources Availability in Canada
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FACTORS AFFECTING ENERGY RESOURCES AVAILABILITY IN CANADA 2
Executive Summary
This paper considers the background presented in the introduction section in order to
analyse stakeholders from Canada as part of the Organisation for Economic Cooperation and
Development. Most importanty, the analysis of the paper seeks to exhibit an understanding of
different factors that affect energy resources availability and managemet. Furthermore, the paper
extends towards looking at the impact that these have on the rising energy demand from Canada.
Some of the areas of target includes trends and targets in terms of allocation of resources,
technical advancement, and the social economic impact. Besides, the paper evaluates the barriers
that hinder Canada to achieveINDC as explained the rest of this paper.
The findings shows that several factors affect energy resources and availability in
Canada. They include economic problems, low levels of technology, evaluation of energy
seservoir, political and regulations, and variations in climate. Secondly, the INDCs also
experiences anumber of barriers such as low levels of technological know how, demeaning
policies and regulations, unique market needs, political interventions, and low levels of market
standards.
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FACTORS AFFECTING ENERGY RESOURCES AVAILABILITY IN CANADA 3
Table of Contents
Executive Summary.....................................................................................................................................2
1. Introduction.........................................................................................................................................5
2. Canadian Energy Resources Overview.................................................................................................5
3. Factors Affecting Energy Resources Availability in Canada..................................................................6
3.1. Economic problems.....................................................................................................................6
3.2. Low Technology Levels................................................................................................................6
3.3. Energy Reservoir Evaluation........................................................................................................7
3.4. Political and Regulatory Aspects..................................................................................................7
3.5. Climatic Variation.........................................................................................................................7
3.6. Environmental regulations...........................................................................................................8
3.7. Few Energy Generating Companies.............................................................................................8
3.8. Population Class Variation...........................................................................................................8
3.9. Poor Management Planning........................................................................................................9
3.10. Companies view on Energy Management................................................................................9
3.11. Energy Historical Background..................................................................................................9
4. Trends and Targets in Allocation of Resources..................................................................................10
5. Trends and Targets in Technological Advancement..........................................................................10
6. Trends and Targets on Socioeconomic..............................................................................................11
7. Barriers to Indented Nationally Determined Contributions (INDCs)..................................................12
7.1. Low Technological Know How...................................................................................................12
7.2. Demeaning Policies and Regulations.........................................................................................12
7.3. Market Needs Uniqueness.........................................................................................................12
7.4. Low Management Standards.....................................................................................................13
7.5. Political Intervention..................................................................................................................13
7.6. Lack of Implementation of Environmental Conservation Mechanisms......................................13
8. Conclusion.........................................................................................................................................13
Bibliographies............................................................................................................................................14
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FACTORS AFFECTING ENERGY RESOURCES AVAILABILITY IN CANADA 4
1. Introduction
Energy resources are beneficial in our daily activities. Several factors affect energy
resources available and thus raising their demand level. Management regulation and policies
towards energy exploitation affect its availability. Some of these strategies hinder technological
usage in the energy exploitation due to environment conservation. All this contributes to a
deficiency in energy resources due to the low rate of its exploitation. The factors affecting energy
availability are commonly found in the members of Organizational for Economic Cooperation
and Development (OECD). Canada is an example of a country under OECD with diverse factors
affecting energy availability. Currently, the Intended Nationally Determined Contributions
(INDCs) are a major benchmark for measuring COP21 progress and planning processes. Many
INDCs are directly backed by already existing national legislation or policies. Moreover, several
INDCs provide information on processes towards new legislation and policies, triggered by the
preparation of the INDCs. While the level of ambition and the degree of advancement in national
climate policies vary, all Parties mentioned that their INDCs are based on, among others,
existing policies or ongoing national processes, as well as on experiences with implementing the
Convention and its Kyoto Protocol
2. Canadian Energy Resources Overview
The initial crude oil production in the year 1998 increased oil levels in Canada. The
synthetic crude and asphalt generation also increased. In the year 1995, low crude prevailing
market prices reduced the conservative substantial crude oil generation. This was as a result of
the suspension of crude oil exploitation in various wells due to massive losses. The fall in crude
oil prices was due to poor management originating from economic and political disparities.
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Electricity in Canada reduced to some extent from the higher levels witnessed between 1999 and
2002. The fall in electricity level was due to the closure of five nuclear energy stations in Ontario
due to low technology (Tolba 2001, p. 48).
3. Factors Affecting Energy Resources Availability in Canada
3.1. Economic problems
The economic instability in Canada resulted in low crude oil prices. The companies
which were carrying on the exploitation of crude oil closed due to losses. Poor management of
these companies made them unable to operate under the unstable economy. This resulted in the
low amount of crude oil available in the market. Many people in Canada depended on crude oil
for commercial use due to its low prices. The economy widened the gap between supply and
demand whereby demand exceeded amount (Dunlap 2014, p. 71). The impact of crude oil rising
demand brought adverse economic effects in Canada. Some of the results include the closure of
industries which depends on crude oil for operation. Another consequence was a rise in crude oil
related manufactured products due to its unavailability.
3.2. Low Technology Levels
The use of ancient technology techniques affects energy resources availability in Canada.
The five nuclear energy stations in Ontario closed due low technology affected energy
availability. Nuclear power is highly depended on residents in Canada because of it economical.
Many people used it for daily activities. The closure of these stations has reduced energy
availability by 21% in Canada. Similarly, technology significantly contributed to nuclear energy
supply and demand imbalance. It has impacts in the country since many people depend on
atomic energy from various regions. Due to this high growing atomic energy demand, Canada is
forced to import nuclear energy from neighboring countries such as the USA (Ziemba, Schwartz
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FACTORS AFFECTING ENERGY RESOURCES AVAILABILITY IN CANADA 6
& Koeninsberg 1980, p. 32). The importation of nuclear power from the USA is very expensive
and affects the country’s economic status.
3.3. Energy Reservoir Evaluation
The exploration and location of underground energy such as hot springs need advanced
technology due to the presence of sands and shales. Hot springs help greatly in the production of
electricity in many parts of the world. It helps to reduce energy demand currently observed. Due
to the existence of low technology in Canada, the country is unable to discover and exploit
underground sources of energy. It has increased electrical power availability in Canada and thus
raising its demand (Dunlap 2014, p. 81). The increased demand for electricity coupled with less
supply has induced several impacts. Firstly, Canada hires technologically skilled experts from
other countries to assist in underground exploitation of energy which is expensive. It makes the
entire process of generating electricity valuable. The cost is transferred to everyday users who
find it costly.
3.4. Political and Regulatory Aspects
The existing energy legislatures and policies in Canada affect its availability in many
regions. The law imposes onerous taxation on imported to respective users. The regulations also
go against energy importation from other countries claiming that it lowers economy. The policies
only allowed the USA to be the only supplier of electricity to Canada yet it’s not enough.
(Amman & Wilson 1981, p. 61). Therefore, with the imposition these legislations hindering
importation of power, it has increased its unavailability. The impact of this is that it has led to
low industrial revolution due to lack of energy in many regions.
3.5. Climatic Variation
The four seasons of the year affects energy resources availability in Canada such as
electricity. During the dry season, the water levels go down which reduces the amount of
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FACTORS AFFECTING ENERGY RESOURCES AVAILABILITY IN CANADA 7
electricity generated. The less electricity fails to meet the current demand in the country. It
makes results great economic impacts to industries relying on electric power for operation and
consequently losses (Kotter 1993, p. 81).
3.6. Environmental regulations
Canadian set policies on ecological conservation prohibit underground exploration of
energy resources. This reduces the number of sources used to generate power thus making
energy unavailable. The limited sources of energy make the country not to meet the demand.
The only option which remains to cope with this order is to import power. Importation due to
environmental regulations has an impact since it contributes to stranded country’s economic
growth.
3.7. Few Energy Generating Companies
The existence of few companies to produce energy in Canada gives rise to power
unavailability. The supply of electricity by these groups fails to meet the existing demand from
the general population. This has called for the implementation of regulation supporting power
rationing. It has also given rise to energy overreliance from the USA which is costly (Kotter
1993, p. 117). The impact of this similarly makes energy expensive for use in the country. It has
also affected economic growth in the country significantly.
3.8. Population Class Variation
Majority of Canada population demands and prefers nuclear power because it’s cheap,
but it’s unavailable. It has made Canada aim at generating atomic power to meet this demand.
This affects energy resources availability since the country should focus to create more of
already existing energy sources. This has impact other types of energy like electricity whereby
people fail to use it frequently which becomes a wasted resource (Clarke & Trinnaman 2004, p.
54).
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FACTORS AFFECTING ENERGY RESOURCES AVAILABILITY IN CANADA 8
3.9. Poor Management Planning
This is where the Intended Nationally Determined Contributions (INDCs) affects energy
availability. The poor management planning affects energy availability in Canada in many ways.
Firstly, establishment management policies like the prohibition of energy importation make the
available energy not to meet its demand. Secondly, the country energy management team doesn’t
focus on new innovative ways to generate power but dwells on the existing ones. This makes it
difficult to meet the current energy demand. Thirdly, the country’s prohibition of underground
energy too reduces the amount of electricity available. All these have impacts in the state. The
banning of underground energy exploitation leads to unbalanced regional development since
some regions have no access to the current energy (Grainger 1978, p. 27).
3.10. Companies view on Energy Management
There are uncoordinated communication and support by the governmental energy
department with the generation companies. This comprises embezzlement of funds meant to
upgrade energy production sector as a guideline in INDCs. The misuse of these resources by
management official makes it difficult for the industry to grow (Ebenhack 1995, p. 35).
Therefore, this makes energy availability in Canada to be less. This misconduct influences the
energy sector significantly. It makes the companies borrow interest funds from external sources
which after paying leads to low-profit generation.
3.11. Energy Historical Background
Canada started with the generation of unrenewable sources of energy. Unrenewable
sources of energy mean they are depleted upon usage. This made the country to have low energy
availability since the historically invented sources of energy could not meet demand. The
continuation in offering the same kind of power until today has also contributed to energy
unavailability. If the renewable source is in existence today, Canada could not have any shortage
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FACTORS AFFECTING ENERGY RESOURCES AVAILABILITY IN CANADA 9
of energy. The impact of this wrong invention choice is that the nation uses a lot of money to
generate the unrenewable power, unlike the renewable one which is cheap (Abbasi & Abbasi,
2011).
4. Trends and Targets in Allocation of Resources
During the year 1998, Canada had an equal distribution of crude oil to many parts. Due to
the emergence of low prices, the allocation collapsed indefinitely later. This was followed by
people shifting to electricity usage in 1999. The closure of the five nuclear-generating stations in
Ontario made Canada start importing energy from the USA to ensure efficient allocation.
Currently, Canada targets to remove barriers to underground energy exploitation. This will
increase the energy level available in the country and thus enhance equal distribution in all
regions (Tolba 2001, p. 76). The state through its management team targets to explore on other
possible energy sources to meet the current demand. Due to unavailability of energy resources in
some regions, Canada targets to collaborate with the bordering countries for power supply to
help meet the demand. Application of technology is essential for efficient allocation of resources.
Therefore, Canada targets hiring more expertise to assist in energy resources allocation in all
parts. Canada also aims at the use of solar and wind energy as outlined in the INDCs. These are
cheap renewable sources of energy in and which can be used everywhere since they are natural.
The implementation and practice of this idea will ensure the equal allocation of energy resources
in the whole state.
5. Trends and Targets in Technological Advancement
During the year 1998, Canada was using outdated technological skills in the generation of
energy. This old technology never met the energy demand in the country. Later on, during the
scientific revolution, energy production mechanisms were improved through borrowing of skills
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from already developed countries. Currently, Canada targets to establish learning institutions to
help deal with the technological problems associated with energy productions. Due to the state
need to become technologically industrialized, it plans to recruits more specialists to share skills
with the local learners (Ziemba, Schwartz & Koeninsberg 1980, p. 98). Technological growth
goes in hand with the availability of advanced technical appliances. Therefore, Canada has also
put into consideration acquiring of all necessary mechanical devices to enhance energy
generation. The nation also aims at the use of technology in creating cheap energy resources such
as solar and wind power. The two as mentioned in the INDCs is primarily natural and available
in all parts of the world. The practice of this idea will diminish energy resources problems in
Canada.
6. Trends and Targets on Socioeconomic
This regards consideration of both the society and economy when it comes to energy
resources. People in the community mainly used crude oil as the primary source of energy. Due
to its unavailability, they migrated to electricity. The economic status in Canada based on power
was growing well before the fall in crude oil prices. The economy went down such that the
country could not afford technology for production of electricity in Ontario. The importation of
energy later lowered the economy significantly. Canada targets to meet the current energy
demand existing in the society. The state also plans to reduce the cost of all the available sources
of energy to ensure affordability by all people. On the economic side concerning energy
resources, the nation anticipates generating local power to cut down the cost of importation. It
also aims at increasing the budget on energy generation to stabilize the industry which further
will make more income. The state also has an objective in the invention of cheap sources of
energy like wind energy. Cheap source of energy will ensure affordability and reduction in
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power production. Both the society and the economy are the main aspects of energy production
in Canada (Amman & Wilson 1981, p. 57).
7. Barriers to Indented Nationally Determined Contributions (INDCs)
7.1. Low Technological Know How
This lead to the gradual attainment of the INDCs like the discovery of more sources of
energy and also storage methods. Technology is very crucial in the alignment of demand to
supply when it comes to energy distribution. Therefore, it’s minimal, or absence makes it hard
for the alliance. The achievement of the INDCs needs availability of local technology which is
cheap, but Canada depends on external one (Grainger 1978, p. 49). The lack of modern
technological appliances has also made it difficult for the nation to realize the set INDCs.
7.2. Demeaning Policies and Regulations
Most of the energy regulations and policies don’t target at achieving the INDCs but going
against them. Like the policy on environmental conservation limits the available energy
production sources. This makes it difficult for the nation to build a high availability of energy as
stated under the INDCs (Kotter 1993, p. 87). The regulation to some extent prevents invention to
energy resources production. For example, if underground energy could be exploited in Canada,
technicians could ensure high generation of power through utilization of acquired skills.
7.3. Market Needs Uniqueness
This affects the dimensions of energy supply and demand. Power supply and demand
alignments are significant targets in the INDCs. Majority of the people in Canada demand
nuclear energy which is unavailable in the country (Ebenhack 1995, p. 65). This makes it
difficult to equalize its supply to its demand. Therefore, the specific requirement is a significant
barrier to the attainment of the INDCs.
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7.4. Low Management Standards
The achievement of the INDCs needs the practice of high management standards. Energy
management practices in Canada are deficient (Clarke & Trinnaman 2004, p. 61). The
management puts measures which hinder increase in energy levels. Some of these policies as
pre-mentioned before include, restriction in the importation of energy from other states.
7.5. Political Intervention
The political rules in Canada differ with the required political regulation in the INDCs.
This becomes a significant challenge since they instead make it hard for energy to be fully
available in Canada. Policies like the need for using local power without enough availability and
technology for its generation is a barrier to INDCs (Dunlap 2014, p. 71).
7.6. Lack of Implementation of Environmental Conservation Mechanisms
Some of the policies to INDCs prohibit the use of some of the energy resources which
affect the surroundings negatively. INDCs recognize usage of all types of energy to meet the
customer's demand (Brown 2002, p. 56). Therefore, with the lack of conservation measure to
ensure that the use of all sources will be environmentally friendly is a barrier.
8. Conclusion
Energy resources are essential for human survival. The factors affecting energy resources
bring challenges to its availability not only in Canada but many parts of the world. The set
Intended Nationally Determined Contributions (INDCs) must be considered and reviewed for
energy resources availability. Canada energy resource availability plans don’t put into
consideration of the INDCs. Brown (2002) postulated that for energy availability efficiency to
be realized, the primary consideration is to consider demand to avail enough supply. The supply
is dependable on some factors irrespective of the location. Some of the elements as discussed
above are, technological advancement, review of policies and regulation. They also range from
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customer preference determination to invention of reliable energy resources. The management
plans and strategies also contribute to energy availability. Due to Canada being technologically
challenged, it needs to focus on sources of energy which are self-sufficient and require fewer
skills.
Bibliographies
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and pollution. New Delhi, PHI.
Amman, F. M., & Wilson, R. (1981). Energy Demand and Efficient Use. Boston, MA, Springer
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Brown, C. E. (2002). World energy resources: International Geohydroscience and Energy
Research Institute ; with 44 tables. Berlin [u.a.], Springer.
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Beres, S. (2011). Energy resources: around the world. Pelham, NY, Benchmark Education Co
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Mcdonald, L. (2010). Energy resources. Pelham, NY, Benchmark Education.
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