The Alberta Energy Resources Allocation Model

Abstract

This paper describes a dynamic linear programming model designed by the Alberta Research Council for use in the analysis of future research needs and general policy issues pertinent to Alberta’s hydrocarbon resource base. The model describes the future optimal (i.e., least cost to Canadian consumers) allocation of Alberta hydrocarbon resource base required to satisfy both provincial and national primary energy demands which Alberta might be expected to meet. Alternatives to Albertan resources (imports, frontier) are also incorporated. Relevant physical and nonphysical resource constraints are represented in the model. The paper describes the general structure and philosophy of the model and presents results obtained using a typical data base. These include an energy investment schedule within Alberta, an energy resource utilization schedule for both Albertan and competing energy supply alternatives. The cost contributions of the various components such as feedstock, value added, and externalities to the overall costs of providing the primary Canadian energy needs can be generated by the model. The results are illustrative and not to be interpreted as specific policy recommendations.

Contribution No. 951 from the Alberta Research Council.