Thank you, Madam Chair.
Thank you very much for inviting me to be here today.
In the remarks that follow, I'm focusing mostly on elements related to my areas of interest, which are crude markets and energy markets in general as well as the impact of the proposed ban on our ability to maximize value from our resources and from the processing of the resources.
Importantly, the ban before us today focuses on tankers carrying any combination of crude oil and heavy or refined products including synthetic crudes, anything heavier than diesel or jet fuel, in an amount greater than 12,500 metric tons, an amount that would make it a tradeable commodity, essentially. It takes out from the consideration of our crude marketers and refined product marketers the strategic deepwater ports of Kitimat, Kitsault, and Prince Rupert, and of course it provides important protection to the islands in and around Haida Gwaii.
Importantly, it wouldn't affect gasoline, diesel, or jet fuel imports or exports, nor would it affect LNG. The latter is, of course, of particular importance, because we have LNG terminals proposed and/or approved for each of those three deepwater ports in question.
However, I'd like to focus the committee's attention a little bit on our refined products market, where we have refined product production that's broadly expected to increase in Canada with the addition of the Redwater refinery in addition to two major proposals on the west coast, one for Kitimat and one for Prince Rupert. While it's easy to say that this ban does not affect refined products, that's not strictly true, because it does affect some of the products of production, primarily the heavier fuel oils, lubricants, and waxes that would be challenged were this ban to be implemented.
The rationale for that ban, on one hand, is simple. On the other hand, it's very hard to reconcile with our other marine protected areas and such zones.
Minister Garneau has referred to it as protecting a 400-kilometre stretch of coastal temperate rainforest, which is one of nature's truly spectacular sites. Both the Prime Minister and the minister have said something along the lines of the Great Bear region being no place for an oil pipeline, and it's no place for oil tankers either. I think the crux of my remarks is to remind you that such a statement is not without cost, first of all, but it's also not without a degree of inconsistency in the way we treat protected areas.
Today we have, as Mr. Hage presented, no proposed oil pipelines that would affect any of these ports. The remaining proposed oil pipelines would affect the Port of Vancouver or southern access via Keystone XL. However, neither of those pipelines is a sure thing.
I think we want to be very careful about eliminating the option value that exists with having additional ports on the west coast. I think it's also important that we don't ignore the role of rail in this discussion, in that CN currently moves significant quantities of oil and refined products through Prince Rupert and has estimated that, in the absence of other export capacity, it would be able to move significantly further volumes via their infrastructure at Prince Rupert, which would enable Canada to realize higher value for its crude oil.
I mentioned the refineries already. I won't go back into that again. Let me say finally, with respect to inconsistency, that I think it behooves the government to go beyond a one-off determination of areas of natural significance. I've had the opportunity to visit the area. It's indeed a spectacular area, a magnificent landscape, but it's far from the only such area in Canada.
I would call upon the government to consider that we do have oil tankers that ply a lot of waters that I personally hold dear, and I think many other Canadians do, such as the Newfoundland coast, the Fundy shore, the St. Lawrence River, etc. I think we need to consider not just a one-off in the creation of a special category of marine protected area but define well the characteristics that we think apply in a circumstance, and consider the areas to which such similar controls might well apply in other areas of the country.
It's not for me to decide whether this particular area merits special protection, but I think if we are going to merit that special protection, we should define the conditions under which it holds and examine the other areas of Canada that would merit such protection as well.
Thank you very much for inviting me to appear today.