Thank you, Mr. Chair.
I'm really pleased to be here with you.
Our government acquired Trans Mountain and the pipeline expansion project in 2018. We knew then that we were making a necessary investment to enhance Canada's sovereignty and resilience, and to grow the Canadian economy.
Today I want to highlight four areas where the project is delivering positive results for Canada.
First, this project is helping to ensure that Canada gets fair market value for our resources. One of the key ways to see the economic impact of this project is the higher price that Canadian resources are getting on the global market, often measured by the price differential between Canadian oil and American oil. In 2018 the price differential between each barrel of West Texas Intermediate and Western Canadian Select peaked as high as $50 a barrel. That's a discount representing almost 70% of the WTI price on every barrel of WCS sold.
Since the Trans Mountain expansion was brought into service in the second quarter of this year, this average differential has closed, sitting at about $12 U.S. per barrel, or just 17% of the WTI price. This is really important. This is money that Canada was just giving away. This is now money that Canada has for ourselves, for Canadian workers and for provincial and federal governments to invest in the things Canadians need.
Second, this investment contributes to good jobs and economic growth across Canada. Canadian workers in the oil and gas sector earn, on average, about $3,000 per week, almost two and a half times the average weekly earnings in Canada overall. The Bank of Canada has estimated that the Trans Mountain expansion will increase GDP by about 0.25% in a single year. That is a considerable boost to our economy.
All of this means good jobs and more revenue for federal and provincial governments that can be used for public services that really matter to us, such as health care, education and housing infrastructure.
The pipeline is also having a positive impact on central Canada's manufacturing industry, creating stable demand for materials and industrial products. According to the Canadian Steel Producers Association, approximately 30% of all steel used in Canada is used by the oil and gas sector. This is just one example of how the pipeline's benefits extend beyond Alberta. In fact, it's a national infrastructure project that's stimulating economic growth and creating good jobs across the country.
Third, this project is helping get Canadian resources to world markets, even as the western alliance is constraining Russia's access to global markets for its oil. In a very real way, this project is helping us to support the brave people of Ukraine and to constrain Putin's ability to fight against them.
Fourth, this project is an important step towards economic reconciliation with indigenous peoples. Indigenous peoples have benefited from the project and will continue to do so.
Is my time up?