The
Canada West Foundation has released a report that delves into the
world of natural gas, explaining its economic benefits for Canada
over the past 50 years, and its value as a foundational fuel for
our energy systems going forward.

Sound policy decisions will ensure that natural gas continues to
be a cost effective and stable energy alternative as we move toward
a carbon reduced future, says the Foundation.



target=”_blank”>Seismic Shifts: The Changing World of Natural
Gas by href=”http://cwf.ca/about-us/staff/f-michael-cleland”>Michael
Cleland, Nexen Executive-in-Residence, examines the future of
natural gas from the perspective of both consumers and producers.
Natural Gas accounts for about one-quarter of Canadian energy end
use as well as a growing share of fuel for power generation.

Canada’s natural gas world is changing:
potentially underpinning a truly sustainable twenty-first century
energy revolution, potentially growing bigger as we reach to other
markets, and continuing to generate economic opportunities and
fiscal returns to governments. Natural gas has been good for Canada
for over half a century. With sound public policy, it will continue
to be good for Canada far into the century ahead.

Seismic Shifts concludes that natural gas is not a
“bridging” fuel, but rather a stable foundational fuel that will
remain a part of the energy mix in the future.



“Although the energy landscape in Canada is shifting with new
technologies and resources, the future of natural gas is extremely
positive for consumers. Lower costs underpin the competiveness of
the Canadian economy, and in addition to being affordable, natural
gas is abundant and reliable and can significantly reduce the
environmental impact of the energy system,” author Michael Cleland
explains.

“While the producer’s perspective is less optimistic, Canada
needs to look at both internal policies and Asian export
opportunities to remain in the game.”



The Seismic Shifts paper outlines several policy
directions that need to be discussed when outlining future policies
that deal with this resource. These include:

• 
  
  reaffirm the basics-markets
  work and we should be cautious about calls from interest groups for
  governments to somehow fix things; 
  
  
  
  
  
  



• recognize natural gas as a foundation of a sustainable
  energy future-including one in which greenhouse gas emissions are
  steadily declining; 
  
  
  
  



• keep the consumer front and centre and make sure energy
  policy emphasizes consumer value, safety, reliability,
  affordability and choice;   
  
  
  
  



• approach carbon management through pricing rather than
  regulation-in an even-handed carbon pricing environment, natural
  gas is a strong competitor that will contribute to reducing
  Canada’s greenhouse gas emissions; 
  
  
  
  



• be adaptable to future uncertainties-avoid trying to pick
  winners and use performance measures in preference to specified
  technologies when designing programs or regulations;
  and 
  
  
  
  



• help Canadian producers to deal with our competitiveness
  challenges by facilitating access to Asian markets, making
  environmental approvals more efficient, and ensuring that fiscal
  regimes are competitive in a Canada-US context.

“Natural gas is abundant, has relatively low emissions and may
be the only part of the energy system not facing increasing
commodity costs in the coming decade,” said Cleland. “It is a
natural foundation fuel in an increasingly carbon constrained
world.”

Since the policy foundations for natural gas were laid in the
mid-1980s, supply sources, markets, environmental imperatives and
technologies have changed. Up to this point, Canada has benefited
from a successful natural gas industry, and with some refining and
additions to existing policies, has the ability to succeed in the
future. 



This report is part of the Canada West Foundation’s href=”http://www.cwf.ca/powering_up” target=”_blank”>Powering Up
for the Future Project, which focuses on public policy
challenges at the interface of the economy, the environment and
energy.

To download href=”http://cwf.ca/CustomContentRetrieve.aspx?ID=4051653”
target=”_blank”>Seismic Shifts: The Changing World of Natural
Gas or any other Canada West Foundation paper, visit href=”http://www.cwf.ca./”>www.cwf.ca.