Thank you for the opportunity to address your committee and also to answer your questions. I hope I can add some value to the work of the committee. I have submitted a short brief to the committee on what I wanted to address, so I'll keep my comments fairly brief.
I'll introduce my organization, mention the importance of diversifying our markets, and then speak to responsible action on the environment and climate change, the critical importance of innovation, and how all of this ties into energy security.
First, our organization, Alberta Innovates - Energy and Environment Solutions, is one of four new provincial corporations launched by the Alberta government in January 2010 under the Alberta Innovates banner. We serve as the technology arm of the Alberta government in energy and environment. We're a successor to two previous organizations stretching for over 36 years. We've had a big presence in the area of energy and environment for some time now.
Our mandate is to position Alberta for the future in energy and environment. We do that by identifying, evaluating and selecting technologies and partners, and that's important. We've built the domain expertise and the competitive intelligence tools to be able to do that. We invest in or fund research and technology with industry, the federal government, and international collaborators.
A recent supplement in The Globe and Mail provides an example of the work we've been advancing. I'm going to table that supplement; I know it needs to be translated.
As well, I'm tabling our annual report, more than anything else to provide you with some idea of the work we're doing and further details on the impact of our work.
I want to discuss broader energy markets. I'll use the example of the forestry industry in B.C., which for a decade has been trying to move away from just the North American market. It has recently achieved a big breakthrough in penetrating the Chinese market. The demand in China was always there, but one had to be persistent and overcome the cultural barriers of using wood for building houses.
In Canada we have growing oil resources. In fact, we are the only developed country that can dramatically increase its oil production, not only from oil sands, but also increasingly from tight conventional oils, the so-called shale oil that's found in Manitoba, Saskatchewan, and Alberta. Production has already started in Manitoba and Saskatchewan, and in Alberta to some degree.
Unfortunately our only market is the United States. That market is reaching a saturation point and is forecast to stagnate as we move forward. It is crucial for Canada that we focus our efforts on diversifying our markets, with special emphasis on Asia, China, Korea, and Japan. Not only is this important; it is also becoming very urgent.
The second point I want to make is about responsible action for the environment. Societal expectations are such that when we're considering economic development, we do that with what is best for the environment. It's no longer just companies wanting that: society expects us to do it. In the oil sands, Canada is most vulnerable on the environment, and there are many organizations working hard to balance environmental stewardship with economic reality. For example, the Alberta Chamber of Resources, which I believe is next on your agenda, has led a comprehensive land use initiative that allows forestry companies and energy companies to work together side by side to integrate their operations so as to minimize the footprint on the land.
If we are to be successful on the environmental front, technology will be a key. I believe our future successes will come from what our past successes have come from, and that is a strong government and industry partnership based on a clear business case and a well-articulated implementation strategy.
New technology creates risks for companies in financial markets. I've provided a graphic representation showing the length of time—20 to 30 years—that it takes to bring new technology to market in the resource sector, much longer than in any other sectors. The time lag does create a high risk profile, and the financial commitment required to overcome these long periods is quite substantial.
We believe that the role of government is to work with industry to reduce the risk of adapting new technology, especially next-generation technology.
The final point on technology is that there is a need for significant investments in sectors where Canada has a natural advantage. These investments need to be focused and sustained over long periods of time because of the length of time it takes to bring what I've called “game-changing technologies” to market. We cannot achieve our environmental targets without changing the game.
My final point is on energy security. My bias, if you like, is that energy security cannot be separated from our energy resources, which are vast; our economy, which is heavily dependent on the energy sector and the resource sector; and our environment, which gives us the social licence to operate.
In all of these—energy, economy, and environment—technology is the glue if we are to be competitive, maximize the value of our resources, and mitigate environmental issues. I believe the government's role is to set the boundary condition and to intervene to ensure the technology is available in an acceptable and affordable manner.
Thank you.