Report on Results

Goal 1: To Increase Investment in Energy and Mining Resource Development in British Columbia

Core Business: Oil and Gas
Objective	Performance Measure	2003/04 Target	2003/04 Actual	Variance
Double oil and gas production in British Columbia by 2011.	Achieve a 26 per cent increase in oil and as production by the end of 2005/06.	Achieve a 4 per cent increase in oil and gas production over 2002/03 levels.	Target Not Achieved • 2.5 per cent decline in 2003 gas production. • 3.8 per cent decline in 2003 crude oil production.	• The volume of gas declined by (2.5) per cent.¹ • Crude oil declined (3.8) per cent.¹
	Achieve a 20 per cent increase in oil and gas exploration (drilling) activity annually for the next three years.	Achieve a 20 per cent increase in oil and gas exploration (drilling) activity over 2002/03 levels.	Target Achieved: • 56.0 per cent increase in oil and gas exploration (drilling).	• Target exceeded by 36.0 per cent.
Generate $20 billion worth of cumulative investment in the oil and gas sector by 2008.	Increase investment in the oil and gas sector.	Generate $3.3 billion worth of investment in oil and gas.	Target Achieved • $3.5 billion worth of investment in British Columbia's oil and gas sector.	• 16.7 per cent increase; achieved $0.2 billion more investment than the targeted $3.3 billion.


¹	The oil and gas sectors did not achieve a 4 per cent increase in oil and gas production due to high declines in the Ladyfern field. In 2002 Ladyfern represented 15 per cent of total raw natural gas production in the Province. That percentage fell to only 6 per cent in 2003. Crude oil production declines resulted from a significant shift away from oil exploration to natural gas exploration.

Core Business: Mining and Minerals
Objective	Performance Measure	2003/04 Target	2003/04 Actual	Variance
Increase mining exploration and development activity.	Achieve predetermined annual dollar amount.²	Realize a mineral exploration expenditure of $50 million.	• Preliminary figures indicate that exploration expenditures in British Columbia will reach $55 million.	• Initial figures suggest the target will be met.
	Realize $400 million in capital investment in new or existing mines in British Columbia by 2005/06.	Achieve $100 million worth of capital investment.	• This target will be exceeded as approximately $173 million of planned expenditure for calendar year 2003 has been reported by Eskay, Highland Valley Copper, Elk Valley Coal Partnership and Compliance Energy. Most has already been undertaken.	• Target exceeded by $73 million.


²	Error in the initial target stated in the 03/04 Service Plan due in part to the use of unstable preliminary statistics. Increasing BC's share of national exploration expenditures to 9 per cent was an unattainable and difficult to measure goal. The new performance measure represents a reasonable while ambitious appraisal that is more readily confirmed.

Core Business: Electricity and Alternative Energy
Objective	Performance Measure	2003/04 Target	2003/04 Actual	Variance
Stimulate investor interest in British Columbia's clean energy sectors.	Increase investment in British Columbia clean energy sector.	Achieve a 10 per cent increase in investment in BC's clean energy sector over the established baseline.	• More than 640 GWh of new clean electricity.³	Target exceeded by a factor of five.

Energy from non storage hydro, small hydro, biomass, and biogas projects that is sold to BC Hydro, as measured in giga-watt hours (GWh), has been used as a proxy for the amount of investment in clean and alternative energy. The 1999 baseline, established as a reference point for the province's 2002/03 – 2004/05 Strategic Plan, is 1115 GWh (Updated figure). A 10 per cent increase equates to 112 GWh of new clean and alternative electricity generation. In 2003/04, nine IPP projects began commercial operation, adding about 640 GWh per year of new clean and alternative energy. This is more than five times the 112 GWh performance target.

Core Business: Electricity and Alternative Energy

Objective

Performance Measure

2003/04
Target

2003/04
Actual

Variance

Implement provincial energy policy by 2004/05.

Implement provincial energy policy.

Implement legislation for a Heritage contract to keep electricity rates as low as possible.

Implement changes to the Utilities Commission Act to improve regulatory oversight by BCUC.

Implement legislation to create a separate Crown corporation for transmission.

• Implemented: Transmission Corporation Act; Utilities Commission Amendment Act; BC Hydro Public Power Legacy and Heritage Contract Act. In addition, several Orders in Council were passed to further implement these elements of the Energy Plan, and key agreements between BC Hydro and BC Transmission Corporation were developed and designated by Cabinet.

Target achieved.

Core Business: Offshore Oil and Gas

Objective

Performance Measure

2003/04
Target

2003/04
Actual

Variance

Facilitate the development of BC's offshore oil and gas resources in a scientifically sound and environmentally safe manner.

Implement components of offshore work plan.

• Apply principles of Provincial offshore perspective to development of a management and regulatory regime.

• Further advance the state of knowledge.

• Engage coastal First Nations and communities.

• Principles have been presented to the federal government.

• Stakeholders including coastal First Nations and communities have been engaged through various means including contribution agreements and fact finding missions.

Target achieved.