Evidence of meeting #99 for Natural Resources in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was data.
A recording is available from Parliament.
9:45 a.m.
Conservative
Jamie Schmale Conservative Haliburton—Kawartha Lakes—Brock, ON
I guess Ted isn't next. We don't get to hear from Ted. That's a shame. That's a shame for everyone. Canada loses today because we didn't hear from Ted.
9:45 a.m.
Liberal
The Chair Liberal James Maloney
[Inaudible—Editor] is sharing that view because some people are leaving, but anyway.
9:45 a.m.
Conservative
Jamie Schmale Conservative Haliburton—Kawartha Lakes—Brock, ON
Why expand?
The Trans Mountain expansion project will help make sure Canada gets value for its oil. Everyone will benefit. Workers will benefit during the $7.4-billion construction project. Oil producers will earn more revenue for their project. Government will collect more tax revenue from the oil. These revenues contribute to services that benefit all Canadians.
Currently, nearly all the oil produced in western Canada goes to markets in the United States in the Midwest. However, there's a limit to how much oil this market needs. For much of the last decade, Canada has been selling into the United States at a discount to the world price for similar oil markets. The simple truth is that Canada's oil will fetch a better price if we give ourselves the option of shipping more of it via Trans Mountain's Pacific tidewater terminal in the Burrard Inlet. Canada will earn more on every barrel of oil that is piped west compared to those sold to our existing customers in the United States Midwest market, a differential that exists regardless of the price of oil.
The project will allow Canadian oil to be delivered to international markets, and as a result, Canada will earn approximately $3.7 billion more per year. Independent estimates conclude oil producer revenues will increase by $73.5 billion over 20 years of operations and Canada will earn $46.7 billion in additional taxes and royalties—the federal government's. With oil sands production expanding in Alberta in the years ahead, new markets and new opportunities are emerging. As countries in the Asia-Pacific region begin to develop the same quality of life we enjoy here in Canada, they need sources of energy, and Canada is a natural trading partner.
Now, the question also remains with future investment. One could ask oneself if Canada is able to do that. Well, many oil producers have made significant investments in Canada, 15- to 20-year commitments, as a matter of fact. It adds up to roughly 80% of the capacity in the expanded Trans Mountain pipeline. Some of those companies are Athabasca Oil Corporation, BP Canada, Energy Trading Company, Husky Energy, Imperial Oil, MEG Energy, Suncor, Teck Canadian Energy Sales, Total E&P Canada, and many more.
Am I okay?
9:50 a.m.
Liberal
The Chair Liberal James Maloney
Can I ask you this? Our witness for the next hour is here. Do you anticipate using the next 50 minutes for your remarks, or should I ask them to stay?
9:50 a.m.
Conservative
9:50 a.m.
Conservative
Jamie Schmale Conservative Haliburton—Kawartha Lakes—Brock, ON
Am I going the distance? Yes, I'm going to keep going.
9:50 a.m.
Conservative
Jamie Schmale Conservative Haliburton—Kawartha Lakes—Brock, ON
Thanks, Nick. I appreciate that, buddy.
9:50 a.m.
Liberal
TJ Harvey Liberal Tobique—Mactaquac, NB
I could look up some articles for you.
I could do some research and bring you over stuff, if you want.
9:50 a.m.
Conservative
Jamie Schmale Conservative Haliburton—Kawartha Lakes—Brock, ON
If you want to, I'd be more than happy to take it.
Should I keep going? I don't know if you have to officially dismiss the witnesses.
9:50 a.m.
Conservative
Ted Falk Conservative Provencher, MB
Well, start over. If you don't know where you were, just start again.
9:50 a.m.
Conservative
9:50 a.m.
Liberal
TJ Harvey Liberal Tobique—Mactaquac, NB
It's always been one great big circle anyway, so you might as well start with me.
9:50 a.m.
Conservative
Jamie Schmale Conservative Haliburton—Kawartha Lakes—Brock, ON
Well, I have to bring it back to the motion, T.J. I don't want you to cut me off.
9:50 a.m.
Conservative
Jamie Schmale Conservative Haliburton—Kawartha Lakes—Brock, ON
I've been tying it back the whole time. I'm trying to help you here.
Okay, I'll get back to this article, but I just want to update the committee on the latest.
Canada is spending $4.5 billion to now buy the Trans Mountain pipeline—
9:50 a.m.
Conservative
Jamie Schmale Conservative Haliburton—Kawartha Lakes—Brock, ON
That's right. It's another $7 billion to build it. Now we have a government that's in the energy business.
I'll get back to the article:
The federal Liberal government plans to spend $4.5 billion to buy the Trans Mountain pipeline and all of Kinder Morgan Canada's core assets.
Finance Minister Bill Morneau says that in return, Kinder Morgan will go ahead with its original plan to twin the pipeline this summer while the sale is finalized, which likely won't happen until August.
That's new.
Once the sale is complete, Canada will continue the construction on its own, with a view to eventually selling the whole thing down the road, once market conditions would allow it to get the best price.
It actually doesn't say who's going to do the building.
Morneau presented the options during an early-morning cabinet meeting today before ministers made a decision on how to proceed.
Here we go.
Export Development Canada will finance the purchase, which includes the pipeline, pumping stations and rights of way along the route between Edmonton and Vancouver, as well as the marine terminal in Burnaby, B.C., where oil is loaded onto tankers for export.
Morneau says the government does not plan to be a long-term owner and is in negotiations with interested investors, including Indigenous communities, pension funds and the Alberta government.
We took it away from a private investor with no tax dollars needed, and now we have put it on the backs of taxpayers.
9:55 a.m.
Liberal
The Chair Liberal James Maloney
If I can interrupt, speaking of “on the backs of taxpayers”, I've just been advised that these witnesses have come in all the way from Alberta. If there is an opportunity to do a five-minute presentation, they would like to do that.
I'll just throw that out there for you.
9:55 a.m.
Conservative
Jamie Schmale Conservative Haliburton—Kawartha Lakes—Brock, ON
How many witnesses do we have? Just one?
All right, I will end it.
How long do they get for a speech, 10 minutes?
9:55 a.m.
Liberal
The Chair Liberal James Maloney
Ordinarily they get 10, but it seems that they're content with five. I think they'll take whatever they can get.
