Mr. Speaker, with regard to (a), (b), (c) and (d), Natural Resources Canada, NRCan, has not done a formal study or report on the economic impact of increasing Canada's refining capacity. However, we keep developments in the refining sector under constant observation. In fact, NRCan has recently appeared before both parliamentary and Senate committees to provide insight on these matters. Canada has the second-highest refining capacity per capita among G8 countries; however, at 85% capacity utilization, it is currently experiencing significant overcapacity. This overcapacity is the result of a decline in North American demand for refined petroleum products.
In Canada we have a market-based approach that relies on market forces to signal when and where new refining capacity should be built.
With regard to (e), the Government of Canada supports the construction of a west-to-east pipeline and notes that the private sector has brought forward two possible projects. Given Canada’s market-based approach to energy policy, NRCan believes that the industry is best placed to determine how to move crude oil to markets, whether it be by rail, pipeline, ship or other mode of transport. All proposals for such pipelines are required to submit a detailed application to the National Energy Board, NEB, the independent federal regulator, which will then conduct a comprehensive regulatory review that could include public hearings and the submission of evidence on issues relating to but not limited to socio-economics, environment and public safety. Through this review process, concerns and questions regarding the economic impacts of a west-east pipeline would be addressed.
NRCan has extensive expertise and knowledge regarding the development of crude oil pipelines, oil markets, and the economics surrounding the development of oil and gas pipeline infrastructure in Canada. NRCan is able to support policy decisions concerning the development of energy infrastructure in Canada through the analysis and synthesis of information from many credible sources, including, but not limited to, internal reports and studies, publicly available reports and studies, academics, industry experts, non-governmental organizations and other governments.
NRCan continuously analyzes retail gasoline prices across Canada and publishes extensive information on gasoline prices and the factors that influence gasoline prices. This material is publicly available at www.fuelfocus.nrcan.gc.ca. The Fuel Focus report is published every two weeks, while gasoline price information is updated daily.