Strategic Context 
Strategic Context
British Columbia is in the fortunate position of having abundant opportunities for energy, mineral and petroleum resource development. The Ministry is committed to working with communities, industry, First Nations and environmental organizations to ensure that the continued economic growth and development of these sectors is socially and environmentally responsible. British Columbians are witnessing increased jobs, business opportunities and government revenue from the production and sale of energy, mineral and petroleum resource commodities.
Electricity prices in British Columbia are among the lowest in North America, thanks to continued public ownership of British Columbia’s heritage assets, which include historic electricity facilities such as those on the Peace and Columbia Rivers, the Government’s establishment of the Heritage Contract that ensures British Columbia ratepayers continue to benefit from the low cost electricity from these assets, and the BC Utilities Commission’s regulation of domestic rates.
The estimated onshore and offshore oil and gas resources of British Columbia are substantial. Onshore oil and gas activity levels remain robust in the British Columbia portion of the Western Canadian Sedimentary Basin. However, growth in exploration activities in some areas is expected to ease in 2008, as areas with known resource potential are secured through Crown sales.
The resurgence of the mining industry in the Province reflects the significant policy improvements made by British Columbia since 2001. Government’s focus continues to be on streamlining business in the province, without diminishing the high level of environmental stewardship as well as public and worker safety expected by British Columbians. Stronger mineral prices, largely driven by the emergence of robust Asian economies, provide excellent opportunities for mining in B.C., provided the Province remains competitive.
The Ministry assesses its risks and opportunities annually as part of its strategic planning process. Once risks/opportunities have been identified, they are addressed through strategies that result in the successful implementation of Ministry goals and objectives for that given period. The following is a discussion of the Ministry’s external risks and opportunities.
External Risks
Financial — Volatility in financial markets and commodity prices can have significant impacts on investment levels in the province. Canada has benefited from demand for copper, gold and oil from the U.S. and increasing demand from emerging economies such as India and China. The potential slowdown in the U.S. economy and the high Canadian dollar may reduce U.S. demand for Canadian energy exports.
Competition — Investment dollars move readily around the globe to the jurisdictions that provide the highest net return for given levels of risk. The Ministry monitors changes in British Columbia’s competitiveness as compared to other jurisdictions and implements strategies to maintain our competitive position and investment attractiveness. For example, the Ministry continues to streamline and update legislative and policy frameworks to minimize the regulatory burden while increasing British Columbia’s competitiveness.
Skilled Workers — The re-emergence of our mining sector and the rapid expansion of our energy sector has resulted in a growing number of permanent, well-paying employment opportunities for British Columbians. One of the challenges facing resource-based industries today is attracting young people into their workforces as the supply of older workers declines with the aging population. The BC Mining Plan and Energy Plan are implementing an approach to skills training and labour which focuses on attracting, developing, retaining, and informing workers about employment opportunities.
External Opportunities
Rutherford Creek, Pemberton, B.C.
Global Supply/Demand — The emergence of China and India as major commodity consumers continues to influence demand and prices in a wide range of resource commodity markets. China is also a potential new source of investment funds that can be attracted to British Columbia. The Ministry is fully engaged in the provincial Asia Pacific Initiative, aimed at positioning British Columbia as the preferred economic and cultural gateway between North America and the Asia-Pacific region. North American demand in the oil and gas markets continues to increase while new supply opportunities are limited. British Columbia will remain as a significant supplier of natural gas to North American markets. B.C.’s opportunity to supply minerals to the world is unprecedented as mineral prices and demand remain strong. As one of the richest mineral regions in the world, B.C. continues to access international opportunities through targeted overseas marketing.
New Relationship with First Nations and Community Consultation — British Columbia’s communities in resource rich areas continue to seek earlier and more comprehensive information from government regarding the development of resources in their areas. Many First Nations and communities are actively looking at the opportunities open to them to engage in proactive energy planning — ranging from energy conservation programs to economic and resource development. The Ministry is actively working with First Nations and will continue to work to enhance public confidence, identify ways to provide greater community benefits and increase investment certainty for industry.
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