Natural Resources Canada
Symbol of the Government of Canada

Office of Energy Efficiency Links

 

Office of Energy Efficiency

Menu

Industrial Consumption of Energy (ICE) Survey – Summary Report of Energy Use in the Canadian Manufacturing Sector, 1995–2009

PDF Version | Table of Contents | Next Page

2 Executive summary

The Industrial Consumption of Energy (ICE) survey is an annual survey of Canada’s Manufacturing sector. This summary report examines energy consumption patterns for the Canadian Manufacturing sector from 1995 to 2009, using the results of the ICE survey.

The following are some of the key findings from the 2009 ICE survey:

  • The 2009 energy consumption of the Manufacturing sector was 11 percent, or 240 petajoules6 (PJ), lower than in 2008. From 1995 to 2009, the Manufacturing sector’s energy use decreased by 18 percent (or 445 PJ), which is approximately equal to the energy used in offices across Canada in 2008 for space heating, space cooling, lighting, water heating, as well as operating auxiliary equipment (such as computers) and motors.7

  • According to Statistics Canada, weakened global and domestic demand for manufactured goods continued to drive down capacity utilization rates.8 Of the 21 subsectors in the manufacturing sector, 18 registered lower industrial capacity utilization rates in 2009 than in the previous year.9

  • Although there are 21 subsectors within the Manufacturing sector, 4 subsectors accounted for 76 percent of all energy consumption of the sector in 2009 – Paper Manufacturing (NAICS 322), Primary Metal Manufacturing (NAICS 331), Petroleum and Coal Product Manufacturing (NAICS 324) and Chemical Manufacturing (NAICS 325). This summary report examines key findings among these four subsectors.

From 1995 to 2009

Table 1 compares energy consumption, output (as measured by gross domestic product [GDP]10) and energy intensity11 of the overall Manufacturing sector and the four greatest energy users of the sector from 1995 to 2009. It shows that from 1995 to 2009, energy consumption in the Manufacturing sector decreased while its production increased; this resulted in an improvement in energy intensity.

Table 1. Comparison of energy consumption, GDP and energy intensity of the Manufacturing sector and selected subsectors, 1995–2009

  Total Manufacturing (NAICS 31–33) Paper (NAICS 322) Primary Metal (NAICS 331) Petroleum and Coal Product (NAICS 324) Chemical (NAICS 325)
Change in energy consumption -17.9% -41.1% -16.7% 25.2% -14.2%
-445.0 PJ -370.4 PJ -84.3 PJ 73.8 PJ -39.4 PJ
Change in GDP 4.5% -18.8% 4.1% 12.9% 6.0%
$6.3 billion $2.0 billion $0.3 billion $0.4 billion $0.7 billion
Change in energy intensity -2.5% -27.4% -20.0% 10.9% -19.1%

The Paper Manufacturing subsector’s energy consumption declined by 370 PJ (or 41 percent) between 1995 and 2009. This was the largest decrease among the four subsectors. It was also the only subsector that experienced a decrease in GDP (19 percent) during the period. This is partially a result of the closing of many pulp and paper plants over the last few years.

The Petroleum and Coal Product Manufacturing subsector shows the only increase in energy use of the four subsectors – increasing 74 PJ (or 25 percent). It was also the only subsector that experienced an increase in energy intensity (11 percent) during the period. This could be due in part to the introduction of federal regulations aimed at reducing air pollutants.12 Adhering to these regulations required further refinement of crude oil by the petroleum refineries, which in turn required more energy. These regulations are discussed further in Section 5.3.1 of this summary report.

From 2008 to 2009

In 2009, the Manufacturing sector continued to face the impact of the recession late in the year (third quarter). This resulted in decreased output and energy use. Since output fell more quickly than energy use, increases in energy intensity were witnessed in almost every Manufacturing subsector. Table 2 compares energy consumption, output (GDP) and energy intensity of the Manufacturing sector as a whole, as well as the four selected subsectors, from 2008 to 2009.

Table 2. Comparison of energy consumption, GDP and energy intensity of the Manufacturing sector and selected subsectors, 2008–2009

  Total Manufacturing (NAICS 31–33) Paper (NAICS 322) Primary Metal (NAICS 331) Petroleum and Coal Product (NAICS 324) Chemical (NAICS 325)
Change in energy consumption -10.5% -8.5% -20.0% -1.8% -7.3%
-240.5 PJ -49.4 PJ -105.1 PJ -6.6 PJ -18.9 PJ
Change in GDP -12.7% -13.3% -25.1% -0.8% -10.3%
$21.3 billion $1.3 billion $2.9 billion $30.0 billion $1.5 billion
Change in energy intensity 2.5% 5.6% 6.7% -1.0% 3.3%

Petroleum and Coal Product Manufacturing was the only subsector analysed in this report with a decrease in energy intensity from 2008 to 2009.

6 See Appendix A, Glossary, for a description of petajoule.
7 Natural Resources Canada, Energy Use Data Handbook, 1990–2008, Commercial Sector, Table 1, oee.nrcan.gc.ca/corporate/statistics/neud/dpa/tableshandbook2/com_00_1_e_4.cfm.
8 See Appendix A, Glossary, for a definition of capacity utilization rate.
9 Statistics Canada, The Daily, June 11, 2009, www.statcan.gc.ca/daily-quotidien/090611/dq090611a-eng.htm. “Manufacturers lowered their use of production capacity in the first quarter [of 2009] to 65.9%, down 7.8 percentage points from the fourth quarter of 2008. This was the largest quarterly decline on record for the entire manufacturing sector.”
10 In this report, GDP figures are reported in constant 2002 dollars. See Appendix A, Glossary, for a description of GDP.
11 Energy intensity is the amount of energy use per unit of activity. See Appendix A, Glossary, for a more in-depth description.
12 Environment Canada, Fuel Regulations, 2009, www.ec.gc.ca/energie-energy/default.asp?lang=En&n=EE068DA8-1.

Previous Page | Table of Contents | Next Page