Strategic Context

Vision, Mission and Values

Vision

Thriving, competitive, safe and environmentally responsible energy and mining sectors significantly benefiting all British Columbians.

Mission

The Ministry of Energy, Mines and Petroleum Resources facilitates investment in the responsible development of British Columbia's energy and mineral resources to benefit British Columbians.

Values

The following values define the Ministry of Energy, Mines and Petroleum Resources' management style and positions it to achieve its Service Plan goals and objectives.

Advocacy

The Ministry works with the energy and mining sectors, advocating their interests to broader stakeholder groups in a way that ensures the responsible and sustainable development of energy and mineral resources.

Integrity

The Ministry is committed to respectful, honest and ethical behavior in all its communications and actions.

Responsiveness

The Ministry is service-oriented and responds to the needs of its stakeholders and the public in a timely and effective manner.

Accountability

The Ministry is accountable to government and the public for the results identified in its Service Plan. The Ministry is effective and efficient in delivering timely services and implementing sound financial management.

Professionalism

The Ministry is committed to maintaining the highest levels of both technical competency and public service values, and encouraging innovation and creativity.

Partnership Building

The Ministry promotes teamwork, good working relationships and effective partnerships with others.

Planning Context and Key Strategic Issues

British Columbia is in the fortunate position of having abundant opportunities for energy and mineral resource development at a time when the markets for these commodities are forecast to continue to strengthen. Rising prices on international markets for coal, minerals, electricity, oil and natural gas are resulting in increased jobs, business opportunities and government revenue from the production and sale of these commodities from BC operations. At the same time, continued public ownership of BC Hydro's heritage assets and the BCUC's regulation of domestic rates under the heritage contract mean that electricity prices within British Columbia are among the lowest in North America.

Oil and gas activity levels remain robust in the British Columbia portion of the Western Canadian Sedimentary Basin with many companies pursuing BC's relatively unexplored oil and gas potential. Companies are still able to acquire substantial contiguous blocks of rights in BC, which is particularly valuable for those pursuing development of oil and gas resources, which require efficiencies of scale to be economic.

The recent resurgence in the BC mining sector reflects both the fact that BC is one of the richest mineral regions in the world and recent improvements in government policies, regulations and support for the mining industry. The significant international upturn in the mining industry, for all commodities, coupled with the growing economies of Asia, provides British Columbia with an opportunity to benefit from exploration investments and new and expanded mine developments.

British Columbia energy consumption continues to increase. The need to reduce demand growth, and manage the link between energy use, greenhouse gas emissions and air quality, will drive efforts toward greater energy efficiency and the development of cleaner sources of energy. Implementing policies such as "Energy Efficient Buildings: A Plan for B.C.", will help British Columbia achieve these goals. The responsible development of the Province's clean and renewable electricity resources is a key aspect of BC's energy future. British Columbia is currently a net importer of electricity and investments in generation within the Province will reduce exposure to price swings and security of supply issues associated with imports from neighboring jurisdictions.

Technology plays an important role in reducing energy use per capita or per unit of GDP, without sacrificing economic growth. Considerable opportunities exist to develop and commercialize new energy technologies and renewable energy sources such as clean coal, wind, geothermal, ocean energy, biomass, and biofuels.

Annually, the Ministry of Energy, Mines and Petroleum Resources assesses its risks and opportunities as part of the strategic planning process. Once these risks/opportunities have been identified they are addressed through strategies that result in successful implementation of the Ministry's goals and objectives for that given period. The following is comprehensive list of the aforementioned external and internal risks and opportunities.

External Risks and Opportunities

Availability of Investment Funds — Financial markets have moderately tightened and this could decrease the potential for the province to see increased spending and investment in some sectors in 2005/06.

Commodity prices — Commodity prices have a significant impact on investment levels but are completely outside of the control of the Ministry. The Ministry is focused on identifying the opportunities created by the high commodity price environment to accelerate responsible development in the near-term.

Competitiveness — Investment dollars move readily around the globe to the jurisdictions that provide the highest net returns for given levels of risk. The Ministry monitors changes in British Columbia's competitiveness as compared to other jurisdictions and implements strategies to maintain British Columbia's competitive position and investment attractiveness.

Weather and Climate — The weather can impact the demand for energy as well as the ability of industry to produce energy. For example, several years of low rainfall can mean reduced reservoir levels and reduced ability to generate hydro-electricity. Also, an early thaw in Northeast BC can mean a reduced window of operation for oil and gas companies.

Access to the Land-base — Access is essential in order for industry to explore for and develop British Columbia's rich mineral, small hydro, coal, geothermal, wind, and oil and gas resources, which are geographically distributed throughout the province. As industry moves into new areas and the level of activity increases, there are increased concerns expressed by First Nations, communities and individual residents about potential resource developments in their areas. In addition, land use decisions by government can have a significant impact on resource access by industry.

Skilled Workers — With the growing demand throughout Western Canada for both skilled and unskilled workers in the transportation and construction sectors, as well as the energy and minerals sectors, new strategies for attracting, training and retaining workers are required.

First Nations Consultation — There is a need to build new relationships with and capacity in First Nation's communities with regards to energy, mineral and petroleum exploration and development. The Ministry has a separate goal and strategies designed to address this in this Service Plan.

Community Engagement — In many areas of the province, communities are seeking earlier and more comprehensive information from government and industry regarding resource development proposed for their areas. In addition, many communities are actively looking at the opportunities open to them from proactive energy planning — ranging from energy conservation programs to the economic development opportunities associated with local resource development. The Ministry is developing and implementing a community engagement strategy to enhance public confidence, provide greater community benefits and increase investment certainty for industry.

Offshore Oil and Gas — Offshore oil and gas resources in the Queen Charlotte Basin, based on present estimates, could return tens of billions of dollars in revenues to the Province. However, the socio-economic impact of offshore oil and gas development on local values and existing commercial activities is undefined. The federal moratorium remains the primary obstacle to substantive progress in a number of areas including, seismic data collection, information dissemination, First Nations and community consultations, regulatory and management discussions and scientific studies related to offshore oil and gas.

North American Oil and Gas Supply/Demand — North American demand for oil and gas continues to increase while new supply opportunities are limited. This trend will continue to support the higher level of oil and gas prices over the next five years.

China/India — The emergence of China and India as major energy consumers has increased demand and prices in a wide range of resource commodity markets. For example China's growing steel demand has boosted the world demand for and price of metallurgical coal. As a result, coal companies have taken a renewed interest in BC's major coal deposits. Additionally, China is emerging as a new source of investment funds that can be attracted to BC.

Northern Natural Gas Projects — Completion of proposed arctic natural gas pipelines may result in a shift in oil and gas investment northward, and could temporarily dampen North American natural gas commodity prices as large amounts of natural gas are brought into southern markets.

Geoscience — Enhanced geoscience surveys are key to attracting more mineral exploration investments. Geoscience BC, a new non-government organization, is playing an important role in delivering geophysical and geochemical surveys in the province.

Environmental Concerns — Virtually all of the current provincial and federal interactions concerning electricity and alternative energy are significantly influenced by Canada's obligations under the Kyoto Protocol. This pervasive issue remains difficult for governments to manage because, while perceived by many as an environmental issue, the implications in the near term are largely economic. The timeframe for action, measured in decades, tends to challenge governments faced with more immediate demands for limited financial and public sector resources.

Technological Change — Technological innovation is seen as a key indicator of progress in the energy and mineral sectors. Many view it as a panacea for addressing escalating costs, enhancing energy security of supply and addressing environmental issues.

Aging Provincial Infrastructure — British Columbia's electricity generation and oil, natural gas and electricity transmission and distribution infrastructure is aging with many components nearing the end of their useful lives. Utilities will increasingly be faced with decisions regarding the ongoing maintenance of assets versus replacement.

Consumer Awareness — British Columbians generally do not recognize the influence their energy-use decisions have on provincial resource development, infrastructure management and energy policy.

Internal Risks and Opportunities

Collaborative Relationship with Industry — The Ministry has an exemplary relationship with key industry clients. This has allowed the Ministry to advance new programs and strategies promptly and decisively.

Staffing Challenges — The Ministry has highly motivated and skilled staff, but recruitment and retention remain a challenge for certain technical and professional positions. A qualified, effective staff is pivotal in developing productive relationships with communities, First Nations, industry, other agencies, local governments and environmental groups.

Internet-based mineral tenure acquisition and administration system — Implemented in early 2005, the system has been widely accepted as an excellent registry system which increases tenure security, allows easy access to data and provides administrative savings. Industry clients are responding by acquiring mineral claims at a record pace. Recent enhancements to the data systems for oil and gas tenure administration also add to the Ministry's ability to deliver efficient service to clients.

Online mine permitting — The Ministry is developing an online permitting system for mineral exploration that is harmonized with the new approach to multi-agency approvals.

Resource Information — BC's state-of-the-art mineral resource and geoscience databases and interactive mapping websites are seen as a significant positive factor in attracting exploration and investment in BC.

Regulatory Streamlining — The Ministry has reduced regulations to facilitate development while ensuring the integrity of environmental, health and safety standards.

Mountain Pine Beetle — The Ministry is looking to mitigate some of the negative effects of the Mountain Pine Beetle Epidemic by enhancing the opportunities to develop oil and gas basins and mineral deposits in areas impacted by the beetle.

Coalbed Gas — The Province will continue to promote and facilitate responsible coalbed gas development throughout British Columbia.