Good afternoon. Thanks very much for the opportunity to speak with you today.
I'm Chris Bloomer, president and CEO of CEPA, the Canadian Energy Pipeline Association. We represent Canada's 11 major transmission pipeline companies. We transport 97% of Canada's natural gas and crude oil production. Our members have delivered oil and gas products with a 99.99% safety record for over a decade, a record we consistently improve through collaborative initiatives such as our integrity first program.
Our members are committed to public accountability, environmental stewardship, transparency, and continuous operational improvements through the application of management systems and evidence-based practices. We're global leaders in pipeline operations, technology, and innovation.
Although the approval of two pipelines by the federal government was a positive step for Canada, the cumulative effects of the many policy and legislative changes that directly and indirectly impact our industry are of deep concern and will determine whether or not we will be competitive in the future. This includes, but is not limited to, the potential for a complete overhaul of the system regulating and assessing major projects for interprovincial pipelines, the extent of proposed methane emissions reductions regulations, ambiguity about how indigenous people will be included within regulatory frameworks, and the fact that even recently approved pipelines are subject to further reviews and additional consultation requirements.
The proposed oil tanker moratorium act, Bill C-48, is yet another change that will compound uncertainty and negatively impact investor confidence in Canada. In his mandate letter, the Minister of Natural Resources was directed by the Prime Minister to introduce “new, fair processes” that will ensure that decisions for energy projects “are based on science, facts, and evidence, and serve the public’s interest”. This is the foundation from which we reasonably expect the government to legislate on critical matters of national importance like market access.
If passed, Bill C-48 will ban the shipping of crude oil to or from ports located on the northern British Columbia coast, restricting market access for one of Canada's high-value resources. This is perplexing given that Canada currently imports approximately 400,000 barrels a day of foreign oil into our eastern ports. CEPA strongly believes that, given the profound impact of this bill, more thought must be given to scientific analysis and achieving a broader consensus. Currently, Bill C-48 does not do this, despite claims to the contrary. Bill C-48 appears rushed, and CEPA is concerned about its content and disregard of Canada's world leadership on maritime safety.
For example, the low-carbon condensate from the Duvernay and Montney plays are of great economic and environmental significance and contribute to the government's strategic goals for wealth and job creation. However, Bill C-48 is unclear on whether they could be included in the definitions for banned oil products. The lack of clarity on this is alarming, especially given the inherent global opportunities that condensate represents for Canada.
Canada's history with marine oil transportation also contradicts the need for this bill. A 2014 Transport Canada report noted that, between 1988 and 2011, significant work by the government had improved the protection of marine safety. Since the mid-1990s, Canada has not experienced a single major spill from oil tankers or other vessels in national waters on either coast.
Additionally, this government has announced $1.5 billion in funding for a national oceans protection plan to strengthen Canada's leadership as a world leader in marine safety. It is fair to ask the question: what are the safety gaps this moratorium is supposed to restore?
In conclusion, the consequences of potentially drastic policy changes for future energy projects have instilled uncertainty within the regulatory system, adding additional risks, costs, and delays for a sector that the Prime Minister publicly acknowledged has built Canada's prosperity and directly employs more than 270,000 Canadians.
The approach to policy-making represented by the development of Bill C-48 contributes to this uncertainty and erodes Canada's competitiveness.
Thank you.