Thank you, Chair.
Thank you to the committee for allowing me to appear today.
To begin my comments, I will provide brief details about Energy NL. We are an industry association representing approximately 460 companies and organizations involved in the energy sector. Our association has been involved in advocating for our members for 45 years now, and we just recently revised our vision, our mandate and our name to more accurately reflect the interests of our members and the evolving energy industry.
There is an evolution occurring as we prepare to evolve our energy sources. Now more than ever, this energy evolution is being driven by our understanding of energy and technological advancements as well as our skills and expertise. While oil and gas will continue to be a part of the energy mix for decades, we must find ways to ensure that emissions are minimized and that the industry is a leader in our collective efforts towards net zero.
That is where the product of offshore Newfoundland and Labrador is most important. Our oil is 30% below the global average for emissions at extraction. As we work diligently toward net zero, this product should play a leading role.
As we discuss the objective of the federal government to provide a just transition for workers, we must keep in mind the lower emission properties of our offshore, and we must keep in mind the regional differences of our nation and our energy sources. They are not all one and the same.
We must recognize that a just transition for workers may look different in eastern Canada than it does in central Canada, than it does in western Canada, than it does in northern Canada. As outlined in the Energy NL written submission on the just transition for workers discussion paper, our offshore industry employs a highly educated workforce with specialized expertise.
When you consider the 2021 direct employment for just one of Newfoundland and Labrador's producing offshore projects, Hebron, at least 82% of the direct full-time equivalent positions can be considered skilled labour. These are highly specialized, highly paid and highly motivated individuals.
Messaging from governments around transition is important, as messaging that implies an immediate shift has the potential to create uncertainty, deter much-needed investment in the short term to medium term, disrupt livelihoods and impact on the mental health of workers and business owners. Recognition also needs to occur that opportunities for renewable energy development may not provide the same level of employment or incomes as the oil and gas industry, and may not occur in the same geographic areas. Thus, the economic benefits to people and communities may not be the same.
In that context, for the advisory board proposed in the just transition discussion paper, governments, regulators and all industry stakeholders, including the private sector, industry associations, labour groups, education, training and research institutions and organizations that represent diversity in the workforce, should have a role and a voice at the table. Each province should have its own advisory board.
A just transition will require planning and extensive consultation with industry. Technology development and adaptation will also be needed for Canada to reach net zero, and this will certainly require government program support. Coinciding with this, training of workers to enhance their capabilities to work in the digital workplace will also help to lower emissions and ease any potential transition.
There is also a responsibility for governments and businesses to ensure that all Canadian industries are preparing for net zero and find solutions to lower their carbon outputs. This is a cross-sector issue, one we must collectively combat.
I must also say that Energy NL has confidence in the federal Minister of Labour, our own Minister Seamus O’Regan, who is keenly aware of the issues facing workers in the natural resource sector.
To conclude my comments, I will highlight the recommendations of Energy NL.
Differences in regions, including various energy products produced as well as locations of workers, must be recognized. A one-size-fits-all approach will not suffice.
Energy NL recommends that each province have an advisory board composed of government, industry, labour and other invested stakeholders. As part of this, a labour market assessment of each province should occur, with consideration given to impacts on communities.
We recommend that the Government of Canada financially support the research, development, demonstration, implementation and adaptation of technology to help our sectors achieve net zero, as well as support the training of workers to enhance their capabilities to work in the digital work space.
Governments must be mindful of the impact their statements about transition has on workers, communities and companies. All industries, not just the oil and gas industry, must do their part to help us achieve net zero and provide a just transition for workers.
Energy NL also recommends that the approach of the Government of Canada be wholesome, including departments and agencies beyond Natural Resources Canada.
Again, thank you for your time and I look forward to discussing this matter further.