- Jan 2022
- Aug 2021
will reduce overall natural-gas usage by about 70 percent in buildings that install them,
Quebec's plan to encourage hybrid heating (electric + gas) will cause a dramatic increase in gas bills:
Reducing the quantity of gas commodity consumed does not reduce the largely fixed costs of gas delivery. Thus, in order to ensure revenue neutrality and adequate utility cost recovery, a 70% reduction in the quantity of gas delivered will require a 333% increase in the per-unit cost of gas delivery. This increased cost will, of course, be offset by reduced expenditure on the gas commodity. However, If we make the reasonable assumption that today's costs are evenly split between commodity and delivery, a 70% reduction in gas consumption will require a new per-unit price of delivered gas which is at least 182% of the current price with a reduction to 8.25% of the commodity's share of costs. Gas consumers will be paying for pipes, not gas... (I'm not sure what todays cost split is in Quebec. If it's 60% delivery, the price will rise to 212% of today's cost. If it is only 40%, the price will rise to 151% of today's. )
However, it is likely that if the per unit cost of gas increases by the amounts calculated above, a great many gas users will realize that the cost/kWh or BTU of heating with electric heat pumps is lower than that for gas. Thus, it is likely that gas abandonment will increase over the current rates. While environmentalists will welcome increased gas abandonment, it should be recognized that it will create additional pressure to increase the per-unit cost of gas delivery which will, of course, encourage even more abandonment. The result will be a gas death-spiral.
The Quebec approach is unlikely to lead to good outcomes.
- Mar 2017
oil and gas and mineral wealth,
The Arctic is home to a plethora of resources; it currently produces one tenth of the world’s oil and one fourth of its natural gas. Commercial extraction of oil started in the 1920s in Canada’s northwest territories. In the 1960s, large hydrocarbon fields were found in Russia, Alaska, and the Mackenzie Delta in Canada. The last several decades have produced billions of cubic meters of gas and oil in these countries in addition to Norway. The Canadian Arctic holds 49 gas and oil fields in the Mackenzie River Delta and 15 are located on the Canadian Arctic archipelago. There are also 11 offshore fossil fuel fields that were discovered in Barents Sea between Russia and Norway. North of the Arctic Circle, mostly in western Siberia, more than 400 onshore oil and gas fields have been found; roughly 60 of these fields are notably vast while a quarter of them are currently inoperable.
In addition to fuel sources, there are also extensive deposits of minerals in the Arctic, predominantly in the most developed part of the region, the Russian Arctic. It contains copper, silver, zinc, molybdenum, gold, uranium, tungsten, tin, platinum, palladium, apatite, cobalt, titanium, rare metals, ceramic raw materials, mica, precious stones, and some of the largest known deposits of coal, gypsum, and diamonds. The North American Arctic, on the other hand, holds iron, nickel, copper, and uranium. It is important to note, however, that many of the known mineral reserves have not been extracted due to the high cost and their inaccessibility.
"Natural Resources / Arctic." / Arctic. February 21, 2017. Accessed March 08, 2017. http://arctic.ru/resources/.