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Transportation was second to the industrial sector in terms of energy use, but was first in terms of the amount spent on energy in 2008.
The transportation sector is a diverse sector that includes several modes: road, air, rail and marine transport.
In 2008, Canadians (individuals and companies) spent $82.2 billion on transportation energy, the most of any sector in Canada and 95 percent more than the industrial sector.
In the transportation sector, passenger modes consumed 54 percent of total energy use, while the freight subsector accounted for 42 percent and off-road vehicles used the remaining 4 percent (Figure 6.3). Freight was the fastest growing subsector, accounting for 63 percent of the change in total transportation energy use. Growth in freight transportation contributed to an 80 percent increase in the demand for diesel fuel. Motor gasoline and diesel fuel oil, as seen in Figure 6.4, are the main fuels used in the transportation sector, accounting for 87 percent of the total energy use. Between 1990 and 2008, diesel fuel consumption increased by 80 percent due to more widespread use of heavy trucks on Canadian roads, which alone accounts for 96 percent of this increase. Energy efficiency improvements in transportation resulted in energy savings of 378.2 PJ, or $12 billion, for Canada in 2008. Light-duty vehicles (small cars, large cars, light trucks and motorcycles) represent the main type of transport used by Canadians for passenger transportation.
For the passenger transportation subsector, energy use is related to passenger-kilometres (Pkm). The choices that Canadians make to meet their transportation needs contribute to the growth in energy use. Canadians have steadily been increasing their use of air transportation since 1990, with the number of passengers moved by Canadian carriers rising 56 percent and the average trip length increasing 25 percent during the period between 1990 and 2008.10 Both of these factors help to explain the large increase of 96 percent in aviation passenger-kilometres that the transportation sector has experienced since 1990. Passenger transportation energy intensity is defined as the amount of energy required to move one person over 1 km. Figure 6.11 illustrates the influence of various factors on the change in passenger transportation energy use between 1990 and 2008.
The analysis of data from the last two decades shows growing improvements in efficiency for personal vehicles.
Technological advances have not only improved energy efficiency but have also enhanced vehicle performance and power.
Toward the end of 1970s, the Government of Canada proposed a number of voluntary targets for the automotive industry in Canada.
Consumer habits have shifted toward purchases of heavier and more fuel intensive vehicles, such as minivans and SUVs.
The example of these three factors thus shows that despite economic and environmental considerations, the aspect of consumer’s choices can influence energy consumption. The mix of fuels used in the freight subsector remained relatively constant between 1990 and 2008. The move toward just-in-time inventory for many companies has had a major impact on the freight subsector. For many commodities, such as coal and grain, trucks are not an efficient means of transportation. Since 1990, all modes of freight transportation have become more efficient in terms of energy use relative to tonne-kilometres moved. Figure 6.17 illustrates the influence that various factors had on the change in freight transportation energy use between 1990 and 2008. 10 Statistics Canada, Civil Aviation, Annual Operating and Financial Statistics, Canadian Air Carries, Levels I to III: 2008, Ottawa, March 2009 (Cat. 12 Electricity accounts for only 0.2 percent of total passenger transportation energy use and is used, for the most part, for urban transit.
Transportation is second to the industrial sector in terms of energy use, but accounted for the largest share of end-use GHGs in 2005.
Also, the transportation sector used the second largest amount of energy in Canada at 30 percent of the total, and produced the largest portion of end-use GHG emissions (36 percent).
In the transportation sector, passenger modes consumed 55 percent of total energy use, while the freight subsector used 41 percent and off-road vehicles used the remaining 4 percent.
Growth in freight transportation contributed to a 66 percent increase in the demand for diesel fuel. Motor gasoline and diesel fuel oil are the main fuels used in the transportation sector, accounting for 86 percent of the total. Light-duty vehicles (small cars, large cars, light trucks and motorcycles) represent the main types of transportation used by Canadians for passenger transportation.
Energy use in passenger transportation increased 16 percent from 1188 PJ to 1376 PJ between 1990 and 2005.
While road and aviation transportation activity increased, use of shared passenger transit such as trains, buses and tramways decreased since 1990. Passenger transportation energy intensity, defined as the amount of energy required to move one person over 1 km, improved from year to year. In the period, the average fuel efficiency improved for all types of on-road vehicles except motorcycles. As expected, light trucks have a higher energy intensity level than passenger cars because they also have a higher rate of fuel consumption. The amount of energy used for passenger travel increased 16 percent, rising from 1188 PJ in 1990 to 1376 PJ in 2005. Figure 6.11 illustrates the influence that various factors had on the change in passenger transportation energy use between 1990 and 2005.
The mix of fuels used in the freight subsector remained relatively constant between 1990 and 2005.
Using transportation vehicles as virtual warehouses requires a very efficient and on-time transportation system. Even with this significant growth in the trucking industry, rail still moves the largest amount of freight in terms of tonne-kilometres at 355.7 billion Tkm. However, both of these increases are overshadowed by the 190 percent growth in tonne-kilometres of heavy trucks; which is close to the marine's share of total activity. Since 1990, all modes of freight transportation became more efficient in terms of energy use relative to tonne-kilometres moved. Figure 6.17 illustrates the influence that various factors had on the change in freight transportation energy use between 1990 and 2005. 9 Transport Canada, Canadian Motor Vehicle Traffic Collision Statistics: 2005, Ottawa, December 2006 (Cat.
10 Electricity accounts for only 0.3 percent of total passenger transportation energy use and is used, for the most part, for urban transit.
In 2009, commercial business owners and institutions spent $24 billion on energy to provide services to Canadians. However, rapid growth in these petroleum products has been observed since 1999 – especially in consumption of heavy fuel oil, which increased 224 percent. The rapid expansion of electronic equipment use, such as computers, faxes and printers, has added to energy use in Canada since 1990. As shown in Figure 4.7, the office subsector accounted for the largest share of energy use in 2009 (35 percent).
While some gains in energy efficiency were made in terms of overall energy use per floor space, this was offset by an increase in energy requirements for auxiliary equipment. In 2008, commercial business owners and institutions spent $28.0 billion on energy to provide services to Canadians.
The proliferation of auxiliary equipment such as computers, faxes and printers added to energy use in Canada since 1990.
As shown in Figure 4.7, the office subsector accounted for the largest share of energy use in 2008 (35 percent).
While some gains in energy efficiency were made in terms of overall energy per floor space, this was offset by an increase in energy requirements for auxiliary equipment. The industrial sector used the most energy of any sector in Canada but had fewer GHG emissions than the transportation sector.
The industrial sector includes all manufacturing, mining, forestry and construction activities. The level of economic activity in an industry is not necessarily proportional to energy use.
In 2005, the industrial sector's share of GDP accounted for 27 percent of the Canadian total (excluding agriculture). Although GDP is an indicator of economic activity, a notable characteristic of the industrial sector is that the industry with the highest activity level does not necessarily use the most energy.
In the industrial sector, energy is used primarily to produce heat, to generate steam or as a source of motive power.
Natural gas and electricity were the main fuels used in the industrial sector in 2005, meeting 28 percent and 27 percent, respectively, of the energy needs of the sector. Wood waste and pulping liquor are primarily used in the pulp and paper industry because they are recycled materials produced by only this industry. One reason for the decline in use of HFO was that the pulp and paper industry, the largest user of HFO, adopted alternate forms of fuels such as pulping liquor. Forestry, mining, smelting and refining, cement, and pulp and paper have all experienced large growth in energy use since 1990.
Activity in the oil sands was the main driver in the increase in energy demand from the mining industries. Since 1990, the mining industry's energy consumption grew 86 percent and its associated end-use emissions grew 79 percent.
Growth in the mining sector was mainly driven by the upstream mining component, which includes oil sands mining operations.
The smelting and refining industries are primarily engaged in the production of aluminum, nickel, copper, zinc, lead and magnesium.
The smelting and refining subsector is the third-largest contributor to growth in energy demand. The primary production of alumina and aluminum was responsible for most of the 64 percent growth in energy use in this subsector since 1990.
The pulp and paper industries are primarily engaged in the manufacturing of pulp, paper and paper products.
Pulp and paper production, the most energy-consuming industrial activity with a 26 percent share of sectoral energy used, increased its energy use by 10 percent since 1990. Other manufacturing is a residual category of manufacturing industries not classified elsewhere in the industrial sector definition we use in this analysis. The biggest energy consumer in the other manufacturing category is the wood products industry.
This industry represented 13 percent of the other manufacturing subsector's energy use, with 69.5 PJ. Energy efficiency improvements in the form of more efficient capital and management practices are important factors. At the aggregate industry level, 6 of the 10 industries reduced their energy intensity8 over the 1990 to 2005 period. Gains in energy efficiency and a shift toward less energy-intensive activities were contributing factors to the subsectors that decreased their energy. Figure 5.12 illustrates the influence that various factors had on the change in industrial energy use between 1990 and 2005.
Each year, Natural Resources Canada conducts an analysis of the factors behind the observed changes in total energy use in Canada.
Between 1990 and 2009, residential energy use increased by 11% while GHG emissions decreased by 1%. Despite the increases in key energy-use drivers, energy use per household decreased by 18% and energy use per square metre decreased by 25%, primarily due to changes to building envelope requirements and improvement in the efficiency of energy-consuming items.
Energy consumed per unit of floor space had a small decrease, while energy consumed per unit of economic activity decreased by 21%.
From 1990 to 2009, industrial energy use increased by 17% and associated GHG emissions increased by 8%.
Most energy-use growth was in mining, due in part to the oil price spike and process technology advances, leading to significant increases in upstream oil and gas activity (notably oil sands development). Even with technological advances, increased difficulty in resource extraction has resulted in a more energy-intensive upstream mining industry.
As illustrated in the above figure, the energy efficiency effect, after adjusting for capacity utilization, saved 593 PJ of energy and avoided 27.0 Mt of GHG emissions for the industrial sector. However, energy efficiency improved by 350 PJ, mainly within passenger light-duty vehicles, reflecting improvements in both end use and the dominance of this mode within the sector. Overall, passenger transport energy efficiency improved by 263 PJ, avoiding 17.9 Mt of GHG emissions. Energy use increased by 67% and was mirrored almost exactly by a 66% increase in GHG emissions, equal to 30.5 Mt of emissions.
While rail and shipping remain the two dominant modes, there was a 173% increase in tonne kilometres travelled by heavy trucks over the period. The energy use of an industry is not necessarily proportional to its level of economic activity. In 2009, the industrial sector’s share of GDP accounted for 23 percent of the Canadian total (excluding agriculture). Although GDP is an indicator of economic activity, a notable characteristic of the industrial sector is that the industries with the highest activity level do not necessarily use the most energy. Natural gas and electricity were the main fuels used in the industrial sector in 2009, meeting 37 percent and 21 percent, respectively, of the energy needs of the sector. Wood waste and pulping liquor are primarily used in the pulp and paper industry because they are recycled materials produced only by this industry. In most cases, fuel shares remained relatively constant between 1990 and 2009 because fuel consumption increased for most fuel types during this period. Forestry, mining, smelting and refining, and other manufacturing have all experienced large growth in energy use since 1990. Since 1990, the mining industry’s energy consumption grew 176 percent and its associated end-use emissions grew 154 percent. The smelting and refining subsector is the third largest contributor to growth in energy demand.
The pulp and paper industry is engaged in the manufacturing of pulp, paper and paper products and is the main user of biomass as a source of energy. Pulp and paper production has decreased its energy use by 23 percent since 1990 and now represents 18 percent of sectoral energy use. Other manufacturing is a residual category of manufacturing industries not classified elsewhere in the industrial sector definition used in this analysis. Detailed energy use data are taken from the Industrial Consumption of Energy survey for 1990 and from 1995 onward.
At the aggregate industry level, 6 of the 10 industries reduced their energy intensity10 over the 1990 to 2009 period.
Gains in energy efficiency and a shift toward less energy-intensive activities were contributing factors in the subsectors that decreased their energy intensity. In 2009, Canadian industry saved $6.2 billion in energy costs due to energy efficiency improvements.
Figure 5.11 illustrates the influence that various factors had on the change in industrial energy use between 1990 and 2009. Also, to provide a better assessment of energy efficiency gains from the rest of the industry, the factorization analysis was produced without the upstream mining sector and with capacity utilization factored out.


7 The PPGTP provides pulp and paper mills with one-time access to $1 billion in funding for capital investments that make environmental improvements to their facilities. 9 The rates of capacity use are measures of the intensity with which industries use their production capacity. In Canada, 78 percent of all residential energy use is for space heating and water heating. In 2005, average household emissions were equivalent to the emissions of the average number of vehicles per household (1.3 light-duty vehicles).
Natural gas and electricity together accounted for 85 percent of all residential energy use in 2005. Population growth and fewer people per household stimulated a rise in the number of households and a 9 percent increase in residential energy demand from 1990 to 2005. Between 1990 and 2005, residential energy use increased 9 percent or 116 PJ, from 1286 PJ to 1402 PJ.
The 2.7 million households added in Canada since 1990 represented more than the number of households in Quebec in 1990 or three times the number of households in Alberta in 1990. The choices Canadians made with respect to their living space also contributed to an increase in energy use.
Canada has an aging population that tends to remain in their homes longer, in many cases long after their children have moved out. Despite an 18 percent gain in space heating energy efficiency, total space heating energy use increased 8 percent between 1990 and 2005.
The amount of energy used by the residential sector to heat each square metre of living space decreased 18 percent between 1990 and 2005.
Energy efficiency gains were realized because, to a large extent, less efficient systems were replaced with regulated medium and high efficiency systems. The amount of energy used to heat each square metre of living space in a Canadian home decreased. Less energy is required per household for hot water due to increased use of natural gas and newer, more efficient water heaters. Canadians shifted from using oil-fired water heaters to those that use natural gas and that are, on average, more energy efficient. Although there was a decrease in the energy used to heat water on a per household basis, a growing housing stock offset energy intensity improvements from new, more efficient equipment. The increased number of minor appliances offsets the benefits of the energy efficiency gains of major appliances.
The number of major appliances operated in Canada between 1990 and 2005 increased 38 percent. In contrast to trends for major appliances, energy use for smaller appliances such as televisions, VCRs, DVDs, stereo systems and personal computers more than doubled (105 percent).
Energy demand for powering all household minor appliances more than doubled between 1990 and 2005. The amount of occupied floor space with space cooling more than doubled between 1990 and 2005.
The increase in energy used for space cooling would have been more pronounced if not for efficiency improvements associated with room and central air conditioners.
The market share of energy-efficient lighting alternatives increased between 1990 and 2005.
Some of the decrease in lighting intensity can be associated with the increased use of compact fluorescent lamps (CFLs), also known as compact fluorescent light bulbs, which use less energy to produce a certain level of light (Figure 3.11). In the residential sector, energy intensity is usually expressed as energy consumed per household.
Energy efficiency improvements resulted in an energy savings of $6.1 billion in the residential sector.
Energy efficiency improvements in the residential sector have resulted in significant savings between 1990 and 2005. These energy efficiency savings translate into an average savings of $488 per Canadian household in 2005.
Figure 3.14 illustrates the influence that various factors had on the change in residential energy use between 1990 and 2005.
4 Assumes CFLs entered the residential lighting market in 2000 and various bulb types are perfect substitutes.
This high level of spending is a result of the notably higher price of transportation fuels compared with the price of energy used in other sectors. It accounted for the second largest amount of energy in Canada (30 percent of the total) and the largest amount of energy-related GHG emissions (36 percent). Off-road vehicles include all vehicles that are principally used off public roads, such as snowmobiles and lawnmowers.
The increased use of heavy trucks, which are relatively more energy-intensive when compared to the other modes, accounts alone for 79 percent of this increase in freight energy use and 50 percent of the increase in total transportation. In order of amount used, aviation turbo fuel, heavy fuel oil, propane, aviation gasoline, electricity and natural gas are also reported. These savings were largely a result of improvements in the energy efficiency of heavy trucks and passenger light-duty vehicles.
A passenger-kilometre is calculated by multiplying the number of passengers carried by the distance travelled.
The distance in passenger-kilometres accumulated by light-weight vehicles for the purpose of passenger transportation (excluding urban transportation and buses) increased on average by 1.7 percent per year. Motor gasoline was the main source of energy, representing 77 percent of the fuel mix in 2008, followed by aviation turbo fuel and diesel fuel (Figure 6.7). A greater share of Canadians bought light trucks (including minivans and sport utility vehicles [SUVs]), which usually have less favourable fuel consumption ratings than cars. However, in the same period, growth in energy use was significantly less at 38 percent, pointing to the increasing efficiency of the industry.
Passenger rail services in Canada achieved the greatest improvement in energy intensity with a decrease of 37 percent, followed by air transportation with 25 percent.
Therefore, for example, an overall change in the structure would result in a decrease (increase) in energy use if a relative share of a more (or less) efficient transportation mode increases relative to other modes. The light-duty vehicle segment (cars, light trucks and motorcycles) of passenger transportation represented 73 percent of these energy savings. A greater number of valves per cylinder, installation of electronic control systems and improvement of aerodynamics have contributed to the increase in energy efficiency. More consumer choices of energy-efficient vehicles would have produced much more significant improvements in efficiency.
Diesel fuel continued to be the main source of energy, comprising 72 percent of the fuel consumed for freight transportation (Figure 6.13). Just-in-time inventory limits the use of warehouse space for inventory and instead relies on orders arriving at the company just as they are required for production. Figure 6.15 shows that the relative efficiency of rail and marine is greater than that of trucks at moving goods. Without energy efficiency improvements, energy use would have increased 89 percent, or 18 percent more than observed in 2008 (Figure 6.16). Improvements in freight trucks (light, medium and heavy trucks) were a large contributor, representing 51 percent of the savings.
The reason for this high level of spending is the notably higher cost of transportation fuels compared to the fuels used in other sectors. Transportation produces a larger share of the GHG emissions because the main fuels used by the sector are more GHG intensive compared with other areas of the economy. Heavy trucks, which have been growing in popularity for moving goods but are more energy intensive than other modes, explain 78 percent of this increase in freight energy use. In order of use, aviation turbo fuel, heavy fuel oil, propane, electricity, aviation gasoline and natural gas are the remaining fuels that are used for transport. A Pkm is calculated by multiplying the number of passengers carried by the distance traveled.
Consequently, the increase in the number of drivers, the number of vehicles and the distance that vehicles are driven heavily influenced the total Pkm traveled.
Motor gasoline is the main source of energy, representing 77 percent of the fuel mix in 2005, followed by aviation turbo fuel and diesel fuel. The popularity of air transportation lead to a increase of 65 percent in aviation Pkm over the period. The most significant decreases were in passenger rail travel (17 percent) and intercity bus travel (8 percent). This higher energy intensity, combined with the increase in popularity of light trucks, increased passenger energy use. Despite the increasing popularity of larger and heavier light-duty vehicles with greater horsepower, the light-duty vehicle segment (cars, light trucks and motorcycles) of passenger transportation helped save 172.5 PJ of energy. Diesel fuel oil continues to be the main source of energy, comprising over 71 percent of the fuel consumed for freight transportation. The system uses a relatively small warehouse space for inventory and instead relies on orders arriving to the company just as they are required for production. However, heavy trucks are not only traveling longer distances; they are also carrying more freight as the number of trailers they pull increases. Figure 6.15 shows that the relative efficiency of rail and marine is greater than trucks at moving goods. Without energy efficiency improvements, energy use would have increased 86 percent – 15 percent more than what was observed in 2005. The shift between modes was the increase in the share of freight moved by heavy trucks relative to other modes.
Space heating accounts for the largest share of energy use, with about half of the total energy used (Figure 4.3).
These activities have been grouped into 10 subsectors (see Figure 4.4 for a complete listing of activities). Electricity is the primary energy source for lighting, space cooling, auxiliary motors and equipment.
To help account for this activity, NRCan and Environment Canada sponsored Statistics Canada to conduct the Survey of Secondary Distributors of Refined Petroleum Products (SDRPP) in 2010.
While space heating continues to be the primary end-use in the sector, auxiliary equipment use has shown a large increase in energy requirement (170 percent) resulting, in part, from increasing computerization of work spaces (Figure 4.6).
Figure 4.8 shows that floor space had increased 39 percent since 1990 and the number of employees in this sector had increased 40 percent. They are the most energy-intensive activity types despite a slight decrease observed in the energy intensity of the subsectors.
Space heating accounts for the largest share of energy use with about half of the total energy used (Figure 4.3). Retail trade (17 percent) and educational services (13 percent) were the next largest users. Figure 4.8 shows that floor space increased 37 percent from 1990 and the number of employees in this sector increased 40 percent. They are the most energy-intensive activity types despite a slight decrease observed in the energy intensity related to the accommodation and food services subsector.
The main contributor to industrial GDP was the other manufacturing industry, which includes a variety of activities such as food and beverage, textile, computer and electronic industries.
For example, in Figure 5.4, the pulp and paper industry is responsible for 4 percent of economic activity but 26 percent of industrial energy use. For example, coal is one of the types of energy used by the cement industry to heat cement kilns. Wood waste and pulping liquor (14 percent) and still gas and petroleum coke (14 percent) were the other most commonly used fuel types.
Although electricity is used in virtually the entire sector, it is the pulp and paper and the smelting and refining industries that require the most electricity.
However, some of the electricity produced from these materials is sold to other industries. Fuel switching was facilitated by the use of interruptible contracts, with energy suppliers allowing the industry to react to changes in relative prices of fuels.
However, forestry and cement consume proportionally less energy than the other three sectors (mining, smelting and refining, and pulp and paper). This increase is consistent with the growth in the production of aluminum, which grew 85 percent between 1990 and 2005.
This category includes many industries, such as wood products, food and beverage, and motor vehicle manufacturing. In 2005, the share of industries that used more than 6 MJ per dollar of GDP represented 24 percent of total industrial GDP. Energy use per capita, however, showed a 1% increase, reflecting lifestyle changes at home and in private transport. These results reflect the improvement in the efficiency of energy-consuming items, as well as the positive effects of improvements to the building envelope.
Factorization analysis indicates that capacity utilization has a significant impact on the energy efficiency performance of the industrial sector. For example, the pulp and paper industry is responsible for 18 percent of industrial energy use, but only 3 percent of economic activity. Sectors such as mining, transportation equipment, and iron and steel showed significant declines in 2009.
Wood waste and pulping liquor (13 percent) and still gas and petroleum coke (15 percent) were the other most used fuel types. Although electricity is used across the entire sector, the smelting and refining industry requires the most electricity, accounting for almost 28 percent of the sector’s electricity use.
The exceptions were heavy fuel oil (HFO), which experienced a 67 percent decrease, and coke and coke oven gas, which decreased 30 percent.
However, forestry consumes proportionately less energy than the other three sectors (mining, smelting and refining, and other manufacturing).
The largest decline came from the newsprint mill industry, with a 48 percent decrease since 1990 (see Figure 5.7).
Four industries experienced an increase: mining, petroleum refining, forestry, and iron and steel. Pulp mills located in Canada that produced black liquor between January 1 and December 31, 2009, are eligible for funding. Total household energy use was 17 percent of all energy used and 15 percent of all GHGs emitted in Canada.
This contrasts with 1990 when the average household had emissions equivalent to 0.9 light-duty vehicles. Specifically, natural gas and electricity became even more dominant and heating oil use declined.
For example, since 1990, Canadians use more minor appliances such as computers, televisions and microwaves, and choose to cool their homes during the summer months. From 1990 to 2005, medium and high efficiency oil and gas systems increased their share of the oil and gas market from 6 percent to 48 percent. In addition, current minimum energy performance standards mean that new water heaters use less energy than older models.
The result was an overall increase of 4 percent in residential water heating energy use from 239 PJ to 248.2 PJ. However, the total amount of energy that households used to power major appliances decreased 17 percent over the same period. These improvements in efficiency were due mainly to the introduction of minimum efficiency standards in the 1990s.


This increase of 33 PJ is equivalent to the energy required to provide lighting to almost half the homes in Canada in 2005. The percentage of floor space with space cooling went from 27 percent in 1990 to 44 percent in 2005. These improvements include changes to the residential thermal envelope (insulation, windows, etc.) or changes to the efficiency of energy-consuming items in the home, such as furnaces, appliances and lighting. Growth in activity was driven by a 31 percent increase in floor area and by a rise of 27 percent in the number of households. Trends are extrapolated from data collected from Natural Resources Canada, Survey of Household Energy Use: 2003, Ottawa, December 2005. This sector produces a larger share of the GHG emissions because the main fuels used for transportation are more GHG intensive compared with other areas of the economy. Off-road transportation is not analyzed in this report because few data are available for these vehicles, and their share of energy consumption is small.
Motor gasoline dominates the market with 54 percent of the total transportation energy, followed by diesel at 33 percent and finally by other energy sources, which account for 13 percent. Aviation gasoline, propane and electricity are transportation fuels whose consumption decreased over the period. Savings generated by the improvement of both of these types of vehicles had a significant impact on the total energy use since they comprise the majority of vehicles on the road.
The distance in passenger-kilometres for urban transportation and buses increased on average by 1.2 percent per year between 1990 and 2008. In 2008, 39 percent of all new passenger vehicle sales were light trucks, compared with 26 percent in 1990. In third place are buses and urban transit with a reduction of close to a quarter of the 1990 level, that is 22 percent. Second, light trucks have the highest level of energy intensity of the modes of transport studied.
This rise in passenger-kilometres (and therefore, activity effect) is mainly due to an increase of 157 percent in the light-truck activity and 96 percent in air transportation.
The relative shares of passenger-kilometres have seen a strong increase in passenger air transportation and light trucks.
These technological advances have also contributed to better acceleration, higher top speeds, greater load capacity and more horsepower, which saw a rise on average by 69 percent between 1990 and 2008. Figure 6.12 illustrates that energy use increased for all modes of freight transportation, except marine and air, where there were declines of 6 percent and 21 percent, respectively. By using transportation vehicles as virtual warehouses, companies require an efficient and on-time transportation system, such needs usually being met by the use of heavy trucks.
These two modes of transportation have the highest levels of activity and a relatively low energy use.
This increase in the number of tonne-kilometres was mainly due to an increase of 185 percent in heavy-trucks activity and an increase of 53 percent in medium-trucks activity. Off-road transportation is not analysed in this report because little data is available for these items, and they consume only a small portion of the overall transportation energy use. The overall use of diesel fuel increased more than any other fuel because of the large increase in freight activity.
Small savings at the level of individual vehicle types in these modes can have a large impact on the total because these two types of vehicles comprise the majority of transportation use.
During the same period, Canada experienced a 24 percent increase in registered drivers,9 a 13 percent increase in the number of light-duty vehicles registered, and a 9 percent increase in the average passenger distance driven. This increase in activity is a result of both more flights and more passengers per plane compared to 1990. Light truck and air transportation led the growth in Pkm (and therefore, activity effect), with respective increases of 141 percent and 65 percent. Energy use increased for all modes of freight transportation except rail, which experienced a decline of 10 percent.
This change in the inventory system had a major impact on energy use in the freight subsector. As a result, heavy truck use for freight transportation increased significantly over the period. These factors are having a major impact on the tonne-kilometres and the energy use that heavy trucks are contributing to the freight subsector.
Marine followed rail with 241.4 billion Tkm traveled, which is 27 percent more than in 1990. However, over the period, trucks increased in efficiency because their on-road average fuel consumption improved. This increase was caused by free trade and the deregulation of the trucking and rail industries. Street lighting included in total energy use is excluded from the factorization analysis because it is not associated with floor space activity. The GHG emissions associated with the sector’s energy use, including electricity-related emissions, increased 29 percent over the same period.
Natural gas and the remaining fuels are the primary energy sources for space and water heating. These products were used in a smaller proportion in the Atlantic provinces (23 percent) and Ontario (16 percent).
This survey could have a significant impact on the energy demand statistics for refined petroleum after the data have been integrated in the Report on Energy Supply and Demand in Canada (RESD).
This may be attributable to the energy-demanding nature of their activities (restaurants, laundry) and services (extensive hours of operation), as well as the proliferation of electronic equipment with high energy requirements (such as medical scanners).
The GHG emissions, including electricity-related emissions, associated with the sector’s energy use increased 38 percent over the same period. A special survey is currently being conducted by Statistics Canada to help account for this activity. Offices also had the largest increase in energy consumption, using 149.9 PJ more energy in 2008 than in 1990, followed by retail trade and educational services which saw increases of 61 and 40 PJ, respectively.
Total energy use by industry accounted for 38 percent of the total energy use and 33 percent of end-use GHG emissions. Construction and mining were the only two other industries that contributed more than 10 percent to the industrial sector's GDP (see Figure 5.4). In contrast, an industry such as construction is responsible for 22 percent of the economy but only 2 percent of industrial energy use (see Figure 5.4). Many other industries use natural gas to fuel boilers for steam generation and electricity to power motors for pumps and fans. Combined, these two industries account for more than 51 percent of the sector's electricity use.
The exceptions were heavy fuel oil (HFO), which experienced a 37 percent decrease, and coke and coke oven gas, which decreased 6 percent.
Driven by technological advances, which have lowered production costs, and by additional revenue from higher crude oil prices, investment in oil sands projects has become much more attractive. This rise is the principal factor explaining the increase of 148 percent in the energy used by the upstream mining industry since 1990. Again, upstream mining was the biggest contributor, representing $31 billion ($97) of Canada's GDP in 2005. This rate is calculated by dividing the actual production level for an establishment (measured in dollars or units) by the establishment's maximum production level under normal conditions. The improvement in energy efficiency was largely the result of improvements in energy intensity. This highlighted the need to include capacity utilization in our factorization analysis of Canadian industry. GDP increased 25 percent, from $221 billion ($2002) in 1990 to $276 billion ($2002) in 2009 (see Figure 5.4). The trends for these three main contributors to energy demand are now described in greater detail, along with the trends for the pulp and paper industry. This increase is the principal factor explaining the increase of 310 percent in the energy used by the upstream mining industry since 1990 (see Figure 5.5).
Within a household, these forms of energy were used for a variety of activities, as seen in Figure 3.3. These increases were largely the result of increased availability of natural gas and lower natural gas prices relative to oil. This trend, coupled with population growth, has meant more dwellings built and therefore more energy consumed.
This decrease occurred mainly because more people chose natural gas over oil systems, and because natural gas furnaces became more efficient over this period. In fact, the average unit energy use of all major household appliances decreased every year from 1990 to 2005. One example of the rapid growth in minor appliances is the increased penetration of personal computers. The net result was that energy demand for temperature control in 2005 increased by 5.5 PJ compared to 1990. As the passenger-kilometres increase, a rise in energy use usually occurs, unless sufficient energy efficiency improvements have taken place to offset the growth in activity. This change, characterized by a shift away from the use of cars to the use of light trucks, brought about a large increase in passenger transportation energy use.
First is the growing effort on the part of carriers to match their aircraft size with the size of the market, thereby increasing their overall load factor.
Finally, light trucks and cars have registered the least efficient performance as their respective intensity reductions were 19 percent and 17 percent, compared to the 1990 level. Trade-offs in terms of performance and power could generate even greater efficiency improvements.
The context of the last 20 years has therefore facilitated the use of research investments and industry development for purposes other than energy efficiency improvement.
Heavy and light trucks showed the largest increase in energy use, accounting for the majority of energy consumed for freight transportation in 2008. As a result, heavy truck use for freight transportation has been increasingly significant over the period. Rail ranks first in terms of tonne-kilometres in transported goods, with 344.9 billion Tkm in 2008, or 39 percent more than in 1990.
The overall effect on the structure was positive, given the increase in Canada-USA trade and the just-in-time delivery demanded by clients, thus contributing to a more intensive use of truck transportation. As the number of Pkm increases, a rise in energy use often occurs, unless energy efficiency improvements have taken place. This change led to a large increase and shift in passenger transportation energy use toward light trucks and away from cars. Therefore, this rise of 65 percent in Pkm caused a 39 percent increase in energy use since 1990.
Heavy and light trucks experienced the largest increase in energy use, with the majority of energy consumed for freight transportation.
However, between 2008 and 2009, GHG emissions including electricity-related emissions decreased 5 percent. However, natural gas and propane are also used, within a small proportion, to provide energy for auxiliary equipment, such as the propane for stoves and natural gas for space cooling services. According to the 2008 Commercial and Institutional Consumption of Energy Survey (CICES), petroleum products were used mainly in educational services (especially universities), health care, retail services and public administration.
Offices also had the largest increase in energy consumption, using 143.4 PJ more energy in 2009 than in 1990, followed by retail trade and educational services, which saw increases of 59 and 37 PJ, respectively.
Using more diverse energy sources, such as less GHG-intensive biomass, explains the relatively smaller share of GHG emissions associated with the industrial sector compared to its share of energy. Given the relative size of the other manufacturing subsector, further details will also be provided.
Since 1990, capacity utilization increased by 5 percent; this means that industries are getting closer to their optimum production level, and thus becoming more efficient. The main factor contributing to this increase is the use of diesel fuel oil (partially used for hauling). The energy savings due to the energy efficiency improvements made by some industries were offset by increases in consumption by the upstream mining, fertilizer and forestry subsectors.
While we currently lack the data to conduct this analysis at a detailed level, we were able to factor out the capacity utilization effect at the aggregate level. This means that detailed industry categories will not compare exactly with those of previous years.
This rate is calculated by dividing the actual production level for an establishment (measured in dollars or units) by the establishment’s maximum production level under normal conditions. Space and water heating account for the majority of Canada's residential use (78 percent), followed by appliances, lighting and air conditioning. The impact of these changes and the choices made by Canadians are further discussed in the following section, where each end-use is examined.
In 1990, computers were present in fewer than one of six households, but by 2005 were in more than five of seven households in Canada. This occurred despite the average household operating more appliances, becoming larger, and increasing their use of space cooling.
Between 1990 and 2008, light-truck energy use increased more quickly than any other passenger transportation mode, rising 108 percent (Figure 6.8). Between 1990 and 2008, the number of heavy trucks increased 17 percent, and the average distance travelled increased 17 percent, to reach 84,570 km per year. In second position, marine transportation was used for 241.2 Tkm in 2008, an increase of 27 percent relative to 1990. The difference in these two values can be attributed to changes in the types of vehicles used for passenger transportation and improvements in energy efficiency. Between 1990 and 2005, light truck energy use increased more quickly than any other passenger transportation mode, rising 98 percent.
This was attributable to a combination of two factors: a marked drop in the emission factor related to electricity generation and a decrease in electricity consumption.
In the mining sector, the move toward unconventional crude oil production contributed to the increase in the energy intensity. However, heavy trucks are not only travelling longer distances but also carrying more freight as the number of trailers they pull increases.
However, with respect to the increase in freight transportation, the use of heavy trucks surpassed all other modes with a 185 percent growth since 1990.
The decrease in the emission factor was caused by a significant decrease in coal used to generate electricity in 2009. These factors are having a major impact on the tonne-kilometres and energy use that heavy trucks are contributing to the freight subsector. Analyses of transportation modes show a convergence of shares of heavy trucks and marine transportation markets.
The decrease in electricity consumption was significant in Ontario, where total energy consumption decreased 6 percent in 2009 compared with 2008, while electricity consumption alone fell 10 percent. This was attributable mainly to a decrease in space cooling energy use because the summer was cooler in 2009 than in 2008. And, to a lesser extent, the 2008 recession indirectly affected some commercial and institutional activities.



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