Mr. Speaker, it is not my pleasure to debate such a terrible issue for Canadians. I will be splitting my time with the member for Windsor West.
In my time in Parliament, I have spent a lot of time talking about energy issues, ways we can reduce costs for Canadians and ways we can move from our reliance on fossil fuels to renewable energy, many of the good things that are possible in this world.
However, I have yet to see this Parliament take hold of the energy issues in any meaningful way. In some respects, it goes back to the Liberal government of the past, since 2000, that worked very hard to establish a continental energy plan with the United States under the aegis of George Bush and Dick Cheney, and then it carried on with the Conservatives afterwards who were pleased to continue the work of a continental energy plan for Canada. We are now so linked into that in their minds that we cannot make the kind of moves in Canada that could ultimately lead us to much lower energy costs and a better situation for Canadians as a whole.
Having said that and having laid that out as part of the problem that we have in Canada, I would like to move on to more of a national perspective, which is the energy problem. We are talking about the cost of petroleum products. I would first like to say that in the situation we are in, with the Conservatives standing and talking over and over again about the reduction in the GST, we are talking about very little. It is only 2¢ off the enormous cost increases that we have seen in the price of oil and gasoline. Those things will not be impacted by that 2¢ reduction in the GST.
Problems with natural gas have been around since 2003 when Natural Resources Canada indicated that we were in a position of running short of natural gas. The November 2007 outlook shows that we will have a serious problem by 2015 and that by 2020 we will have nothing left to export. We will be importing natural gas to heat our homes. This problem, however, seems to be of little concern to both the Liberals and the Conservatives in their times in office. We have yet to see the Department of Natural Resources, under either of those parties' direction, actually put some effort into understanding what is required for Canadians.
Probably what is required for Canadians is to go back to the old days where we insisted on maintaining large reserves of gas for Canadian use.
One of the great solutions that the Conservatives have thrown up, which we have debated in Parliament extensively, is biofuels. Biofuels, ethanol, will not reduce the cost of gasoline in our system. In fact, what we have seen over the last months in the ethanol business is that many plants that were setting up shop, because of the high cost of food, have realized that there is no profit left, even with the subsidies that are being applied to ethanol, to go into the business. We are seeing more and more ethanol plants across North America shutting down. The cost of feed is too high and the huge subsidy that is being offered up by the Americans is not enough to make up the difference. Therefore, biofuels will not solve the cost of energy in Canada.
Cellulosic ethanol, that kind of dream that we have, the dream of the future, of turning waste into ethanol and driving our vehicles around, is actually even more costly. Study after study has shown that we will not see a lowering of our energy bills through the use of cellulosic ethanol.
Where are we talking this country right now with energy? Are we just aimlessly stumbling along in a free market haze, in a free market ideological funk toward what most of the other countries in the world have given up on? Most countries have established national oil companies and have driven their energy policies by themselves, for themselves, while Canada has this ideological haze surrounding it. We are simply buying into the free market idea and moving ahead with it.
When we talk about oil, oil is a product in Canada. As the minister said, oil is a product of the world and 86 million barrels a day are used. It cannot last forever. However, and members can check with Natural Resources Canada, the government has never done an assessment of the world oil supply for Canadian policy making. It has never looked at the situation of peak oil. Has the United States done it? Yes, it has. The U.S. military and Congress did it in the United States. What happens in Canada? There is no analysis.
I held a forum on Parliament Hill in February on the peak oil situation. What can we say about peak oil in the world? We can definitely say that peak oil production is very near. We should remember that. There is a lot of oil in this world but it is getting harder to find and harder to deliver. It takes larger amounts of capital, manpower and equipment to bring it forward. We are replacing oil as if we only had to stick a straw in the ground and oil would shoot out. Now we need to hunt for it and then put an enormous amount of effort into getting it out of the ground. We cannot replace the conventional oil in the world with unconventional oil fast enough anymore. Therefore, we are at a point of peak oil production.
Do members know what Exxon's biggest investment was in the last couple of years? It invested $30 billion into buying its own shares back off the public market because it realized that cheap oil that had already been found was probably the best way to make a profit. Shell did the same thing.
The recognition of the state of the world oil industy is something we must take very seriously. Yes, the speculative nature of the free market system has driven up the price of oil very rapidly in the last year and we are all gagging on it, but in reality we will be out of cheap oil and we will be stuck with very expensive oil products in the future.
For the people I represent in northern Canada, in the Northwest Territories, this year we will see for our consumer and government expenditures a 10% increase put toward oil and petroleum products. That means that out of our whole economy we will lose 10% next year; 10% of the expenditures for governments, businesses, employees. Everyone will suffer. The burden that northern Canada bears because we have not made the progress on changing is enormous.
As well, my government in the Northwest Territories is trying to change. It is investing in solid bioenergy. It is converting buildings to biofuels and that is working. It is talking about large hydroelectric projects. It is talking about things that it can do.
This country needs to develop a very strong program that will talk about energy and provide people across the country with the answers. That is what this party is after.
We worked very hard on Bill C-30. There is a wonderful opportunity in Bill C-30 to develop a national retrofit program using the cap and trade system that was designed and supported by the Liberals and the Bloc. This is the type of thing we need in Canada: good sensible work and good sensible policies supported by all of us that we can move ahead with. We tried to do that with Bill C-30 and we were fairly successful. Why can the government not understand that we need those things in this country?
I know my time is running short, but this debate is very important to Canadians and I hope that we all take this very seriously.