(Word Count)Notes for a Speech by

The Honourable Joe Oliver, P.C., M.P.
Minister of Natural Resources

Canada’s Emergence as a Global Energy Superpower

Research Institute of Economy, Trade and Industry (RIETI)Tokyo, Japan

November 11, 2011

Check against delivery

-2Introduction

Thank you, Mr. Nakajima [Chairman of RIETI]. Good afternoon, ladies and gentlemen.

I’m pleased to have this opportunity to address such a distinguished and respectedgroup and thank the Research Institute of Economy, Trade and Industry for inviting meto speak.

The independent research and analysis done by your Institute provides a valuable
service in today’s complex, interconnected world. Your advice and perspective helps
shape public policy decisions.

First, as Japan continues to recover from the tragic earthquake and tsunami that hit
Tohoku last year, I want to convey on behalf of all Canadians convey our heartfelt
sympathy and admiration for your dignity and resourcefulness. As you may know westayed and our citizens expressed their solidarity with the Japanese people in tangible
ways and in their thoughts and prayers.

In that regard, earlier today I was proud to announce that Canada, the Government ofBritish Columbia and Canada Wood Japan are contributing up to $4.5 million towards areconstruction project that will involve Canadian wood products and Canadian wood
frame building expertise in partnership with Japan’s construction industry.

During the past week, I’ve been in Beijing, Tianjin, Shanghai and Tokyo to promote
Canada, our natural resources, and our engagement with Asian partners.

Today, in keeping with that theme, I would like to talk about three things:•Open trade and investment;•Energy diversity and security; and,•Innovation and technology

Open Trade and Investment

-3Consider the depth of our involvement in each other’s country. Last year, the total valueof our bilateral trade approached $23 billion. 1 Your exports to Canada, for example,
totaled $13.4 billion 2, making us Japan’s fourth-largest export market. 3

By 2010, foreign direct investment stocks between Canada and Japan had reached $16billion. 4 That makes Japan the sixth-largest foreign investor in Canada. 5

It’s no wonder there is such strong investments between our two countries. We offer
one of the world’s most welcoming environments for investment. In fact, Forbes
magazine recently named Canada as the best place in the world to do business.

We have an open and transparent regulatory system, the lowest taxes in the G7 andrules that do not discriminate against foreign investors.

We offer stability and predictability – two pillars that underpin a sound and growing
economy.

We also have a resilient economy that weathered the global economic recession better
than any other G7 country.

The key to our success has been the attention we’ve paid to the basics – ensuringsound fiscal and economic fundamentals to support a strong and resilient economy.

Thanks to our prudent approach to fiscal management, Canada was in a strong position
when the recession hit in 2008, with the lowest net debt-to-GDP in the G7.

The world reinforced Canada’s standing last week when Mark Carney, Governor of theBank of Canada, was appointed chair of the Financial Stability Board by the G8 member
countries.

1

Minister Fast Q and A, $22.6 billion
NRCan Country Profile 2011
3
Minister Fast Q and A
4
Statistics Canada, Table 376-0051, Foreign Direct Investment in Canada by CountryMinister Fast Q andA
5
Statistics Canada, Table 376-0051, Foreign Direct Investment in Canada by Country
2-4The Board has been given a broad mandate to promote international financial stability.
The Government of Canada believes that Mr. Carney has much to offer, as the world
strives to achieve a more stable financial system.

China and Canada have long recognized that our trading relationship benefits bothcountries, and needs to be deepened.

That’s why, last February, we announced we will study the potential for a formal
economic partnership agreement.

The study is now nearly complete, and it’s my hope it will lead to a formal agreementthat will continue our rich history of collaboration.

One key area for collaboration will be in the energy sector.

Energy Diversity and Security

As Japan contemplates its future energy choices, like other nations around the world,energy security will be a critical consideration.

In that critical dimension, Canada can be your partner.

Whether it’s natural gas, oil or alternative energy, Canada is emerging as a global
energy superpower.

We are the world’s third-largest producer of natural gas and hydro-electric power andsixth-largest producer of oil. We rank third in terms of proven oil reserves, right after
Saudi Arabia and Venezuela. We have abundant renewable energy resource potential
and knowledge, including wind, marine and bio-energy.

Natural Gas

Canada’s most important resource for the Japanese market is our natural gas.

-5In British Columbia, advances in technology are unlocking the potential for developing
shale gas, and this had led to major pipeline and project proposals.

Shale gas has been rightly described as a game-changer. Largely due to shale gas, it isestimated that Canada has marketable natural gas resources of 1,300 trillion cubic feet,representing over 100 years of domestic supply.

This resource will continue to grow as more shale gas is discovered, especially in ourNorth.

Understandably, investors are particularly keen on reaching markets in the Asia-Pacificregion with liquefied natural gas, or LNG.

Japan has been importing LNG for decades, and will remain the world’s largest importerfor some time to come. 6 The Government of Canada encourages Japanese investment
in both LNG infrastructure and gas extraction projects.

Last year, Mitsubishi entered into an $850 million, 50-50 joint venture with Penn West
Energy to accelerate the exploration and development of the Cordova shale gas
reserves in north-eastern British Columbia. Other Japanese firms are also aggressively
exploring opportunities to invest in energy infrastructure. 7

Several LNG export terminal projects have been proposed for Kitimat British Columbia,
and it is poised to become an energy hub for the Province and Canada.

These projects would greatly diversify Canada’s export markets for natural gas at a timeof declining US demand and depressed North-American price. It would also help meetdemand for energy in Japan.

I predict an exciting future for LNG exports from Canada, made possible with large
Japanese and other foreign investments.

67

Canadian Energy Opportunities in Japan
Canadian Energy Opportunities in Japan

-6OilJapanese investors have also been very interested in developing Canada’s oil reserves.

Canada is blessed with 174 billion barrels of proven oil reserve, more than 97%, or 170billion barrels, in the oil sands of Western Canada. And as technology advances — theoil sands are essentially a technology project—the recoverable reserves could reach up
to 315 billion barrels.

But it’s not just the quantity of oil that sets Canada apart: it’s also how we manage anddevelop these resources.

On that note, there are some misconceptions about the environmental issues of the oilsands that I would like to clear up.

First, the impact on land from surface mining. The oil sands affect only one-tenth of one
percent of Canada’s boreal forests. And companies are required by law to remediate
and reclaim 100% of affected land.

In other words, they must leave the land just as it was before—capable of sustaining
vegetation and wildlife.

Let me also say a few words about greenhouse gas emissions. Few people know thatthe oil sands account for only 0.1%, or one thousandth, of global emissions. To put thisin context, in 2009, GHG emissions from coal-fired power plants in the US were nearly
40 times higher than emissions from the oil sands.

Even so, our energy policy reflects Canada’s commitment to reduce its total GHG
emissions by 17% from 2005 levels, by 2020.

A fundamental tenet of our energy policy is rooted in the principles of the open market.

Canada's oil sands are the only large oil reserve in the world that is open to market
development. Overall, just 20% of the world's known oil reserves are available for-7market-based development – 60% is in Canada’s oil sands. It is the largest industrial
development project in the world with over $130 billion in investments. And that is why
we are continuing to attract corporate investors from around the globe, including Asia.

Indeed, Japan has long-standing assets invested in the oil sands, most notably Nippon
Oil Exploration’s 5% stake in Syncrude Canada through Mocal Energy, Ltd. 8 Recently,
Japan Canada Oil Sands Limited received approval for a major expansion of a project inWestern Canada. 9In spite of that investment by Japanese firms, virtually all of Canada's energy exports
currently go to the United States.

This is only natural. The U.S. is Canada's next-door neighbour, a good friend, and ahuge marketplace.

However, we recognize there are other opportunities, and we need to diversify ourmarkets across all resource sectors, especially in the Asia-Pacific region.

Canada’s investment in its Asia-Pacific Gateway is part of an effort to expand
commercial ties with Japan and other countries in the region.

In the years to come, our Asia-Pacific Gateway will be the fastest way to ship goods
between North America and Japan — including energy.

So investors have come forward with projects that would connect Alberta’s oil sands tothe coast of British Columbia, where tankers could transport oil to Japan and other Asiancustomers. One such project is the proposed Northern Gateway Pipeline, which woulddeliver 525,000 barrels of oil a day for export.

This proposed pipeline is undergoing a joint environmental assessment and regulatory
review. A decision whether the project proceeds will be made after the review iscompleted. But make no mistake, while we will continue to seek to expand our share of89Canadian Energy Opportunities in Japan
Canadian Energy Opportunities in Japan

-8the US market, we are determined to diversify our customer base, these two goals are
not mutually exclusive because we will have the supply.

NuclearLike Japan, a key part of our energy portfolio is also nuclear energy. In 2010, nuclearpower generated 15% of all electricity in Canada and 58% in Canada’s largest province,Ontario.

Canada is the second largest producer of uranium in the world. Japan has been an
important partner in our uranium industry with a number of investments by Japanesefirms. We welcome further investment in this important industry.

I appreciate that the accident at the Fukushima nuclear plant has caused Japan toreassess its nuclear plans. All nations understand that safety and security areparamount in the development of their energy supply infrastructure.

For its part, the Government of Canada believes that nuclear energy can play animportant role in achieving global energy security and sustainable development goals.
Of course, it must be developed within a robust regulatory framework that adequately
addresses security, non-proliferation, safety and waste management.

As a source of energy that produces no greenhouse gas emissions, nuclear can help
meet our climate change goals.
Innovation and Technology

I’ve spoken about how our hydrocarbons and nuclear power, which have been such ahuge factor in Canada’s prosperity, can contribute to energy security.

But we are also investing in energy efficiency, innovation, clean technologies andalternative energy sources for the future.

-9I’m pleased to note that Japan continues to be, an important partner in this enterprise.
2011 marks the 25th anniversary of an agreement between Canada and Japan tocooperate in science and technology. There are several areas where our collaboration
on clean energy is generating results.

Carbon capture and storage is a technology that holds great promise to significantly
reduce greenhouse gas emissions from large industrial facilities.

Canada and Japan are already partners in carbon capture and storage research on
several levels. We are both active members of the Carbon Sequestration Leadership
Forum and other initiatives.

Of note, Japan’s Research Institute of Innovative Technology for the Earth (RITE) is oneof the sponsors for a cutting edge monitoring and storage project in Western Canada.

The Weyburn-Midale CO2 Monitoring and Verification project is one of the world’s
largest international CO2 measuring, monitoring and verification research projects. The
commercial enhanced oil recovery operations that are being monitored under this project
have to date injected and stored over 20 million tonnes of CO2 – the equivalent to taking
almost 4.5 million cars off the road for one year.

Yesterday, my department and the Japan Coal Energy Center signed a declaration ofintent to encourage cooperation on the development of clean coal and carbon captureand storage technologies. We will finalize the details of this cooperation in the comingmonths.

In speaking about clean energy technology, I should note the importance of minerals
and metals; in particular, the rare earth elements integral to the production of manyclean energy products. It is a strategic goal of both Canada and Japan to to securestable and diversified global supply channels.

Japan has already made investments in Canada to secure potential supplies of rareearth resources. Canadian exploration companies are currently working on advanced
projects that have significant concentrations of rare earth elements in their ore bodies.

- 10 These companies may be able to begin rare earth elements production by 2015–2016.
We hope to build on this relationship in the future, not only with rare earths but with all of
Canada’s diverse mineral supply.
Canada is one of the largest mining nations in the world producing more than 60
minerals and metals.
We are the world’s number-one producer of potash.
We’re in the top five for the production of aluminum, cadmium, cobalt, diamonds, nickel,
platinum-group metals, salt, titanium concentrate, tungsten and zinc.
The value of Canada’s mineral production in 2010 exceeded $41 billion and contributed$35 billion to Canada’s gross domestic product and $18 billion to our trade surplus.
We remain open to continued investment by Japan in our mineral sector.
Conclusion

Ladies and gentlemen, the message I’ve brought to Japan this week, is that Canada isopen for business as a reliable, secure and socially and environmentally responsible
resource nation.

Our abundant resources in energy, forestry and mining offer trade and investment
opportunities that can generate economic growth in both our countries to build on our
many decades of strong collaboration.

Canada and Japan already enjoy a thriving partnership on many levels, but I’mconvinced—and I hope that you are too—that together we can achieve so much more.

Arigatoh gozaimasu [Thank you].