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INDUSTRY SPOTLIGHT THERACE TO MARKET Canada's energy sector is eager to get into new global markets, but creating the right regulatory environment will require input from many players. By Jeremy Hainsworth With federal and provincial governments agreeing that Canada has the potential to be one of the world's great powerhouses, but one in need of a national energy policy, the country's top companies in the sector are wondering what role they can play in shaping future regulatory and compliance standards. "With our country's unique capac- ity to innovate and build a reliable and resilient energy sector, Canada has great potential to help meet Canada's and the world's energy needs," said federal Natural Resources Minister Joe Oliver after Canada's energy ministers met in Kananaskis, Alta., in July. "Collaboration will put us in a better position to harness our country's energy potential, grow our status as an environmentally responsible energy supplier and user, and create more prosperity and jobs for Canadians." Areas of possible collaboration identi- fied by ministers at the meeting includ- ed regulatory reform, energy efficiency, energy information and awareness, new markets and international trade, and smart grids and electricity reliability. The min- isters noted that over the past year, all levels of government continued to improve regulatory review processes and reaffirmed their commitment to working toward the 28 • OCTOBER 2011 shared objective of one-project/one-review for environmental assessments and associ- ated regulatory processes. This to position Canada for long-term growth and job cre- ation while maintaining the highest stan- dards of environmental protection. It's a set of issues that changes depend- ing on the energy sector companies oper- ate in, but, as David Emerson, the former federal cabinet minister who chairs the Energy Policy Institute of Canada, point- ed out in The Globe and Mail recently, there is a need for the entire country to address issues such as carbon pricing and energy exports, which in the East tends to be electricity instead of crude oil. But it's not just crude and electric- ity that are fueling Canada's burgeon- ing energy market. Wind, thermal, solar, natural gas, and other forms of energy need to be factored into a national energy policy. That creates an environment ripe for a regulatory hurdles race as in many cases there's both federal and provincial obstacles to jump over in approval pro- cesses that can often hinder rather than help the final goal of accessing markets. A number of companies are currently sitting on projects to get oil and gas prod- ucts to market, among them Enbridge Inc., with its Northern Gateway Project INHOUSE to ship oil through the British Columbia port of Kitimat, and Apache Corp. seek- ing to ship liquid natural gas, also through Kitimat. Governments play a key role in devel- oping and implementing public policy to realize an effective Canadian energy strategy, according to Dave Collyer, pres- ident of The Canadian Association of Petroleum Producers. However, he says market forces must be the key determi- nant in decisions on energy supply, trans- portation, and use, both domestically and in Canada's trading relationships. He says the key players in creating that regulatory environment need to be at the table with broad participation from all players. "Responsible environmental perfor- mance, including reductions in green- house gas emissions, is an important ele- ment in the energy strategy, but it should not be the overriding driver," Collyer says. "A robust energy strategy must concur- rently advance economic growth, envi- ronmental performance, and energy security and reliability — the three Es." A Canadian energy strategy comprised of these key elements would build on Canada's current strengths, keep options open, and focus on the many areas of