I would like to begin my address by thanking the Society of Petroleum Engineers for the opportunity to speak to your Annual Petroleum Engineers for the opportunity to speak to your Annual Conference about Canadian Natural Gas prospects and how they fit into the energy requirements of the North American continent over the next 20 years. It seems somehow an appropriate topic since the theme of this conference is "Energy Frontiers".
We in Canada are very optimistic about our future energy potential. We are one of the few industrialized countries which has potential. We are one of the few industrialized countries which has benefited materially from the increase in real energy prices over the past 10 years, there is some truth in the comment that if OPEC had not existed Canada would have had to invent it. The fact of the matter is that Canada is a country which has a very large resource base and has a very exiciting energy future if energy prices are high but we are energy paupers if energy is cheap and abundant.
Our energy supplies are high cost compared to the costs of producing oil in the Middle East and if cheap energy prices, producing oil in the Middle East and if cheap energy prices, such as prevailed over the 1950's and 1960's, continued through the 1970's or 1980's much of our energy resource base would not be economic: