DS

THE REVIEW

Wednesday, September 29, 1982

You -hear.a lot about. the
recession. and .. inflation these
days. But what ever happened to
the energy crisis?

It’s nearly. ten years since the |
1973 Arab oil embargo set off the
so-called energy crisis. Have all
our energy problems -now: sud-
denly disappeared? a
looked:

Actually, if you've
beyond... the. main — headlines,
~-you’ve probably’ noticed’a

number of news items. about

energy during the last six fou

or so, like:

e People are driving less in B. c.,
and gasoline consumption is
down.

® B.C.. Hydro: has Seunchead a
number » of large proposed
power projects.

© A large: liquefied: natural gas
plant is to be built in Prince

Rupert.
© Severe instability continues in.
the Middle East.

_. These and other stories say a_
lot: about B.C.’s current ‘energy

~ situation...

Take © our lower gasoline
consumption, for. example.: It’s

part of a worldwide reduction in

servation” a
recession. ;

and: natural ei : ie

the: use of oil and oil products.
This drop in: oil demand isthe.
result: both of increased con-
-and.- the:

countries are now scrambling. to.

sell their Surplus; and at reduced .
‘prices: 3) ;

- While: we can take Shore ‘term
advantage: of this: situation, we.

can’t count on lower oil prices to -
“lasts or.

imported.
secure.

“The: current

Inthe: recession,» few ‘people.

can afford to make all the desired
changes. So while sel!- sufficiency,
-remains the. long- term goal, in =
bad economic times we may have |
a Jittle. more slowly and.

hy How and-ask’ fo

“current.
‘Oil- producing.

economic —

downturn has. thrown: abitofa —
-twist into this: strategy. It costs
money: to become self-sufficient. fee
Changing over to other. fuels —
such: as: replacing an oil furnace
“with a natural gas one. — - requires _ ‘
an investment... ees

forest,

retain more of our options.
Fortunately, B.C. has far more
energy: options than most other
places in the world. Although we
have to import over 75 per cent of
the large oil supply we-still use,
we do have four other, abundant

energy resources: ~natural gas,
coal, hydroelectricity, and wood
waste. We can also. exercise
greater. energy efficiency and
begin to: use. new. energy
technologies. -

Even though B.C. is well

endowed with energy, each of our
~-resources. has some questions
_ attached to it, particularly.in light

of the current economy.
Natural Gas

Over the years, B.C. has relied:

‘on gas exports to finance the
-investment necessary for: natural. -

gas exploration and development

in this province. Until recently,

B.C. has produced about twice as
much gas as we needed ourselves.

~The: surplus was exported © v ia

pipeline totheU.S. .
‘With. the ‘recession and ‘the

drop’ in U.S. oil prices, B.C.’s

American: market for. gas. has

-been-cut'in half. This has. puta”
- strain on provincial. revenues and ~

hurt private Bas producers: as

well.

This loss in gas ‘sales Aight: be _
- more than made up for by several
"projects, including the. recently ©

announced _ plan to- build oa”

liquefied gas. plant near. Prince

Rupert. The plant. would «use gas
from Alberta and B.C., and the.

- product . would | be shipped to
‘supplies fo. 4
The continued ©

Coal LE ae
“Coal. ‘has: remained: a. bright
Spot in: B. Cy 's economy, while the.

Korea,
Europan countries. |.
At ‘current production

and several

rates,

B,C. has ‘enough coal to’ last. at
‘least several centuries, But

ree’ demonstration ‘of a
ad stove. We have: the full Kishor: Stoves
And Wo. cs pe. to show how one. can ‘cut this.

“FISHER, ers oe
ot FOR THE i

~ several. of ts:

hearings to ‘elect one of several. nee
: companies | applying to build the _

yaro | and it
pipe ine.

interest

“mining” cand: natural. gas "
‘industries: have all been in’ a _
‘slump. ‘Major new coal contracts.
~ recently: have been: signed: with.
Japan,’

a “gome:

our ‘production = is
mostly to Asian
where it is used to
electricity and. smelt

nearly all
exported’ —
countries,
generate
steel.

We could use coal ourselves to
produce. electricity, “but. many
people: are. concerned about air
pollution:
plants can be built today. under
standards that virtually eliminate

pollution. ‘But.the cost of these -

pollution controls might make
the ‘plants: more. expensive ‘than

other kinds. of . generating
facilities: Es
B.C.» Hydro. had’ proposed

building the province’s first coal-
fired electric plant at Hat Creek,
the site of one of the world’s
thickest. coal deposits. The
project» has’ been postponed: a
number of times, however, and
its future is uncertain.

Hydroelectricity

B.C. is unique in that nearly all

our electricity is. generated. by.
Unlike..thermal:::

water . power.
generation, hydro power is clean
and renewable. But it has-its:own’
environmental .
namely, the flooding of valleys.
Because the best potential
hydro sites are mountainous and.
-distant- from ‘most towns.-and .
“cities, long, ‘costly. transmission
- lines are also required. . reat
“The current: recession. has”
ecised B.C. Hydro. to. ‘postpone.
pr posed .
hydroelectric projects, ‘including ~

Site C on.the Peace River and the.
Sukine: Bkuts and Liard ‘projects

Another problem’ facing B. Cs
ustomers is: higher
es. Inflation, rising -
rates, ‘and the : lower
“Canadian dollar are alli increasing —

electricity.

the. financing costs of Hydro's Spee

- large construction debt.

- These costs, “plus the i increasing
“taxes. and fees (such as: water “USE:
charges) ‘that. Hydro. pays to
governments, must all-be' passed
-on.to customers. in the. form: of.
_ higher prices,

» Current. restraints: may.

Coal-burning power

problems. anes

: ‘has’

‘hold -
increases back, but the .

The B.C. Energy Picture

é 23.3% Imported Oil
-— 326.4PIJ

Energy from
B.C. Resources
Hydroelectricity 13.7%

16 1%

>

Natural Gas 32.4%

1073.2PJ Oil and LPG 9.4%
~ Wood. Waste L7G

«Coal 27.4%

Energy
- Used

2s for work.
or heat,

36.3%
SO79PI

Energy =

: Lost of
no in transmission, : 30. 3 % >
“vansportation, : - 424.7PJ a

~~ & conversion:

ie Les ees Exported
ad Petajoule (Ph) + = 160. 740 barrels of oil or. no Coal 61. 1%. Saton terete
~ equivalent energy: : : Natural Gas 37. 6% ~—-467.3P). an

-< Source: Ministry of Energy, Mines and o
if Petroleum Resources, June. [st:, :

Electricity aS 1.3% a

Right now, pares Bevoee enerey
na -ateatest(: _potential