Thank you, Mr. Chairman and all committee members.
My name is Eric Marsh and I am vice-president of the EnCana Corporation. It is my pleasure to address this committee.
Today we are proposing that the Government of Canada take a bold and innovative leadership step towards addressing some of Canada's most pressing environmental, economic, and energy challenges by establishing a Canadian natural gas transportation policy. We believe that through strong government leadership in the expanded use of natural gas throughout Canada's transportation sector, our country would quickly become a world leader in marrying the environmental benefits of clean-burning natural gas with widespread economic growth that is capable of generating substantial benefits from coast to coast and through virtually every sector of Canadian society.
EnCana's 2010 budget request is that the federal government launch a natural gas transportation policy for Canada, with policy changes that would support the use of natural gas, rather than higher-polluting fuels such as gasoline and diesel, to promote emissions reduction and spawn economic growth, and with fiscal policy measures to establish an investment framework that would create the first natural gas transportation corridor for passenger vehicles and commercial trucks, starting from Windsor, Ontario, and going on to Quebec City.
This policy change would stimulate investment capital in large-scale infrastructure projects such as refuelling stations and liquefied natural gas plants. In addition, it would provide support for the auto sector and the trucking industry to encourage manufacturers to mass produce natural-gas-powered vehicles and provide more product choices for our consumers. With joint cooperation between government and industry stakeholders, we are proposing the creation of a road map that adopts a solid plan for multi-year implementation by the end of 2010.
North America has recently experienced an extraordinary increase in natural gas resource abundance that has been driven by new technology advancements in horizontal drilling. North American natural gas resources are widespread throughout the continent and currently stand at approximately 100 years of supply at current production rates. The new abundance of natural gas will provide price stability and ensure affordability for future use as a transportation and power generation fuel. Natural gas can accelerate the environmental benefits addressed by Canada's Turning the Corner plan through large and immediate emissions reductions for both stationary and mobile sources.
Compared to our traditional fuels, natural gas emits 30% less carbon dioxide when used in transportation vehicles and generates 50% lower emissions than coal for power generation. Technology for large-scale natural gas use as a transportation fuel for passenger and commercial vehicles exists today. Europe, Asia, and South America have experienced impressive growth in natural gas vehicles, to nearly 10 million worldwide.
Consumer fuel savings offered by natural gas are impressive. At current fuel prices and in equivalent profit margins to gasoline, fuel savings of 50% could be achieved by the use of natural gas as a transportation fuel.
Policy changes mentioned previously would aid in the design and development of an extensive natural gas fuel corridor between Quebec City and Windsor, Ontario. EnCana has met with many business and government stakeholders to solicit support for the construction of this natural gas transportation infrastructure. Ultimately, this plan will make natural gas a major transportation fuel, and it can be repeated in other regions of our country. EnCana believes that an accurate and aggressive road map to ensure success should be created in 2010 to drive positive change in job creation, economic value, and emissions reductions.
A full build-out of natural gas fuelling station infrastructure across the country and the establishment of the natural gas auto sector would place the scope of this project on a scale with Canada's greatest transportation accomplishments throughout history, such as building the transcontinental railroad, the Trans-Canada Highway, or the St. Lawrence Seaway. It is important to start with these few key steps and launch a road map for the future. EnCana looks forward to working with industry and governments to help our nation realize this opportunity.
Thank you, Mr. Chairman.