Good afternoon and thank you. My name is Jon McKenzie and I'm the president and CEO of Cenovus Energy.
Mr. Chair, I appreciate the opportunity to speak with the committee today.
I'd like to start by acknowledging that I'm in Treaty No. 7 territory in Calgary, which is also home to the Métis Nation of Alberta district 5 and district 6. I acknowledge these nations as the current and original stewards of the land.
Cenovus Energy is a Canadian-headquartered, integrated energy company producing oil and gas in western Canada, Newfoundland and Labrador, and the Asia-Pacific region. We also have upgrading and refining operations in Canada and the United States. We are a founding member of the Pathways Alliance, and a member of the Canadian Association of Petroleum Producers. We are a shipper on the Trans Mountain pipeline expansion.
Canada's oil and gas industry delivers products to Canadians and the rest of the world that are required, necessary and integral to supporting our modern standard of living and quality of life. We should never take this for granted. Hydrocarbons still generate 80% of our global primary energy supply, and the demand for these resources will continue to grow for the foreseeable future.
With access to international markets, Canada is uniquely positioned to continue supplying some of the most responsibly produced oil at a time when the developing world requires energy to raise the standard of living. As the fourth-largest producer and exporter of oil, Canada supplies nearly 5% of global production. The reserves Canada has been blessed with allow our industry to make outsized contributions to this country's prosperity.
Specifically on the TMX pipeline, I'd like to make two important points.
First, the TMX pipeline is a critical piece of infrastructure allowing Canadian energy to access global markets, which strengthens our sector and our country. Canada will enjoy these benefits for decades to come—benefits that will make life more affordable for the average Canadian, extending far beyond the tolls that will be paid by TMX shippers. These are long-term benefits that include high-paying jobs, increased taxes and royalties paid to all levels of government and a strengthened dollar, making the necessities Canadians import more affordable and increasing capital investment in Canada.
Our industry provides more than 450,000 direct jobs for Canadians, which leads to billions of dollars being reinvested in our economy. These are some of the best-paying jobs in Canada, allowing people to earn a living wage and have a high quality of life. Similarly, our industry is one of the largest employers of indigenous Canadians, with salaries about three times the average for indigenous workers in other sectors. We're also developing partnerships with indigenous companies, which helps advance indigenous reconciliation.
Cenovus and our peers pay billions of dollars every year in royalties and taxes. Our industry typically pays more than half of what we make to governments. In 2022, for example, that number was $48 billion. That money is then invested in hospitals, education, social programs and other priorities, to the benefit of all Canadians.
As major exporters, our industry strengthens the Canadian dollar. In 2022, oil and gas accounted for about 30% of all Canadian exports. Without our sector, Canada would run a trade deficit of nearly $115 billion. The result would be an even weaker dollar and an increased cost of imported essentials, such as fresh produce, clothing, construction materials and electronics. To continue to increase our contribution to Canadians' quality of life, we must remain globally competitive, with access to international markets through the pipelines TMX represents.
The second point I'd like to make is that it cannot take 12 years for a major project to be built, as it did here. Canadians deserve better. While this project is an undeniable win for Canadians and demonstrates that we can still build projects in Canada, it also highlights how cumbersome and inefficient our regulatory and approval processes have become. The private sector should be able to build these projects, which are clearly in the national interest, without requiring this level of federal government intervention.
With that, Mr. Chair, I'm happy to take your questions.