Mr. Speaker, this debate provides an opportunity to reassure Canadians that when it comes to the development of our natural resources, the health and safety of Canadians over environment remains the top priority of this Conservative government.
We all continue to be shocked by the enormity of the incident in the Gulf of Mexico, the scope of the ecological challenge facing our American neighbours.
As the Prime Minister said earlier this month:
There are strong rules in Canada. There are rules for relief wells. The National Energy Board does not allow drilling unless it is convinced that the safety of the environment and the safety of workers can be assured. Let me assure all members of the House that we will continue to enforce stronger environmental standards in this country.
That is the fact of the matter.
In terms of the search for energy resources, environmental protection and worker safety, Canada's regulatory system for drilling offshore and everywhere else is one of the best in the world.
We are all hoping that efforts to cap the oil leak in the Gulf of Mexico will soon be successful. Media around the world are following the story closely and, no doubt, countries around the world will be taking a long, hard look at their offshore activities as a result of this disaster.
Here in Canada, our regulators have already moved swiftly by launching a review, placing additional requirements to ensure that all equipment, systems and procedures are in place to ensure safe operations, and to protect the environment.
On May 11 the National Energy Board announced a review of Arctic safety and environmental offshore drilling requirements.
On May 20 the Canada-Newfoundland and Labrador Offshore Petroleum Board announced special oversight measures for current drilling by Chevron in the Orphan Basin.
In addition, the Government of Canada has a team in place, monitoring the efforts in the Gulf of Mexico.
I am happy to tell members that current regulatory requirements for offshore drilling are substantial and meet high standards. I am confident that after a thorough review, one that takes the unfortunate incident in the Gulf of Mexico into close consideration, Canada's safeguards will stand the test of scrutiny. If they fall short, make no mistake about it, they will be strengthened.
Canadians will be happy to learn that our current environmental laws and standards are very strict and we already have a well-developed safety regime for offshore drilling.
The oil and gas platforms used in the Canadian offshore drilling industry as well as the equipment and training required for their operation must meet regulatory standards that are among the highest in the world.
There is currently no offshore drilling in the north. Allow me to repeat that, because there seems to be a lot of confusion. There are currently no oil wells being drilled in northern waters. There is not a single one, and it is as simple as that.
If applications for drilling were to be accepted in the future, the National Energy Board, an independent agency in charge of evaluating these types of applications, would evaluate each one to ensure that it meets strict federal standards.
As for the east coast, the Canada-Newfoundland and Labrador Offshore Petroleum Board and the Canada-Nova Scotia Offshore Petroleum Board have similar responsibilities and are equally rigorous in applying them.
No drilling will happen unless the board responsible is fully convinced that the drilling plans are safe for workers and the environment.
These same boards require that oil and gas companies have up-to-date environmental protection and response plans in the event of a spill.
It should also be noted that the National Energy Board and the offshore petroleum boards do not take a silo approach to their work. They work together. They work together very closely. They are often in touch with other regulatory organizations around the world to learn from what is happening elsewhere, which is what they are doing now.
It is important for Canadians to understand that when it comes to offshore activities, decisions are made with the greatest care and only after a very thorough examination of all factors.
Currently, there is no offshore drilling or oil production occurring in Canada's north. Also, there is a moratorium on oil and gas exploration and production in northern Hudson Bay. And just recently, the moratorium on Nova Scotia's Georges Bank offshore exploration was extended to the end of 2015.
As can be expected in a matter of such great importance, the NEB review process will be open, transparent and extremely thorough. It will include opportunities for any Canadian citizen, especially aboriginal people, to get involved.
In light of the spill in the Gulf of Mexico, we will take a close look at the measures that we may have to take in order to reduce the risk of such an incident happening here.
In the meantime, we have a very sound regulatory system. But like all Canadians, I am appalled by and very concerned about the disaster in the Gulf of Mexico. I am shocked to see the scope of the environmental damage and the economic cost of such a spill. And like all Canadians and, I am sure, all members of this House, our Conservative government wants to ensure that such a disaster never happens here in Canada.
The hon. member's motion also requests a review of the regulations as they apply to the oil sands.
A recent article in the Calgary Herald pointed out:
In the case of the oilsands, the size of the resource has been defined, the exploration risk is non-existent and the environmental challenges fall into the remediable category.
That is just the first point. The same level of risk does not exist; it is just not there.
Second, let us also remember that the environmental regulations that apply to the oil sands, like those that apply to Canada's offshore, are among the toughest anywhere. However, there are some concerns and they are being addressed.
One of the concerns is the use of water. On that point, less than 1% of the average annual flow of the Athabasca River is used in the oil sands. A water management framework is in place. Within that framework, waterflow from the Athabasca is monitored on a weekly basis and limits are adjusted accordingly every week.
Land use is also a concern. Any application for a new development in the oil sands must include a thorough and detailed plan for reclaiming and remediating any land that may be disturbed by the operation. That is a condition of licence. Tailings are managed and monitored according to the strictest environmental requirements, and it must be noted that environmental performance in the oil sands is improving steadily.
Between 1990 and 2007, GHG emissions per barrel of oil production dropped by close to one-third, one of the best records of achievement by any sector in Canadian industry.
Carbon capture and storage will allow us to significantly reduce carbon emissions from the oil sands.
This technology will also allow us to reduce the emissions generated from coal-fired electricity production, thus achieving two goals at once.
The Canada-Alberta carbon capture and storage task force estimated that generalized use of this technology could allow Canada to cut its greenhouse gas emissions considerably, by as much as 600 million tonnes a year, which corresponds to three-quarters of our current annual emissions.
Since we cannot ignore such significant potential, the government continues to invest in research and in demonstration projects to perfect this technology.
Regarding the water issue, I must point out that 90% of the water used in oil sands production is completely recycled, and producers are turning more and more to underground sources that yield brackish or saline water that cannot be used for human consumption or agricultural purposes.
Extensive research is helping us find new and better ways to clean up the land and dispose of tailings and other waste.
Research conducted by scientists in my department is very promising. Scientists have developed a treatment process for the dry tailings whereby those tailings would be shaped into a sort of brick that is both dry and stackable, eliminating the need for tailing ponds entirely and further reducing the risk to the environment.
Although things keep improving from an environmental standpoint, we must also take into account the economic and strategic importance of the resource.
The oil sands are the second largest proven reserves in the world with 170 billion barrels of oil. That is enough to provide every drop of oil the United States will need for the next 23 years.
With advances in technology, it is possible that this yield could almost double and reach more than 300 billion barrels. The contribution of the oil sands to North America's energy security is immense and growing almost every day.
As the International Energy Agency and other experts have said, oil will be the main source of fuel in the world for many decades to come. That is a matter of fact whether we like it or not. We do not have to like it. We can be upset about it, but we can continue to develop alternative sources. That is what we are doing.
However, when we govern, we must also act responsibly, and we must accept the facts and the reality. I repeat that oil will continue to be the main source of fuel for many decades to come. It is time to develop this resource in a cleaner, greener way and that is what the government is doing.
In fact, the IEA has forecast that global demand for oil will increase by almost 35% over the next 20 years. We should realize how lucky we are to have such a formidable resource to fuel our economy and that of our neighbour.
Let us be clear about this: the energy security of the United States and the health and well-being of the American economy are very important considerations for Canada.
The oil sands provided direct and indirect jobs for 250,000 Canadians in 2008 alone. Our entire country benefits. According to a major study conducted by the Canadian Energy Research Institute, 44% of jobs generated by investments in the Alberta oil sands are located outside that province.
In the next 25 years, the oil sands alone could contribute $1.7 trillion—that is $1,700 billion—to Canada's GDP. That translates into 326,000 good jobs, and I repeat, good jobs, for all Canadians.
These are very impressive numbers and very important to our future prosperity and quality of life in Canada, and to the energy and economic security of our most important trading partner and number one customer, the United States.
Of equal importance is the fact that these tremendous resources, not just oil sands, but our offshore oil and gas and any other new energy resource from shale gas to methane, will be developed according to what is the most thorough and demanding safety and environmental regulatory regime in the world. No development will proceed until it is proven that it can be done in safety with full respect for our environment.
The policies and regulations that govern energy and other resource development in Canada are under almost constant scrutiny to ensure that they continue to be effective in all respects; that is, protecting safety, protecting our environment and protecting our economy. This is done not only by the Government of Canada, but by the provinces and territories as well.
Indeed, as Minister of Natural Resources, I am already working with my provincial and territorial colleagues to undertake a fundamental review of Canada's regulatory regime to ensure it is as effective as it can be.
Therefore, I would like to thank the member for Edmonton—Strathcona for her motion, which draws our attention to some very important issues today.
This motion provides us with a golden opportunity to reassure Canadians about the protection provided by Canadian regulatory standards. As I said, these standards are modern, robust and constantly being improved.