Debates of May 21st, 2013

Natural Resources—Main Estimates, 2013-14

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, again, this is the responsibility of another minister. You can keep asking the questions, but you are still getting the same answer.

[The Chair, NDP, Joe Comartin]

I caution the minister to direct his comments to the Chair and not to other members of the House.

The hon. member for Nickel Belt.

[Claude Gravelle, NDP, Nickel Belt, ON]

Mr. Chair, has the department made any assessments of the shortages in skills and in skills training to ensure the local workforce is ready for the project in 2016?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, the government will of course deal with the issues that are raised. My colleague, the President of the Treasury Board, is occupying himself in that connection.

[Claude Gravelle, NDP, Nickel Belt, ON]

Mr. Chair, when in Capreol, did the minister meet with Capreol's safety, health and environmental committee that has been seeking a full environmental assessment for the smelter?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, again, there is a combination here of what is the responsibility of my colleague and the responsibility of an environmental review panel. The question is directed in the wrong direction, as the member opposite well knows. I do not why he is wasting the time of the House.

[Claude Gravelle, NDP, Nickel Belt, ON]

Mr. Chair, I would like to remind the minister that he is the Minister of Natural Resources.

What has the government done in greater Sudbury to invest in skills training for natural resources development?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, budget 2013 announced $4.4 million over three years to FedNor to provide targeted support to aboriginal communities in the Ring of Fire. The funding will provide support for business skills development, strategic business planning and aboriginal youth engagement to ensure they benefit from resource development opportunities in the region.

[Claude Gravelle, NDP, Nickel Belt, ON]

Mr. Chair, does the minister agree with the statement that, “The Crown obligation to engage first nations in a meaningful way has yet to be taken up with respect to natural resources development projects?”

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, the short answer is no. Our government takes very seriously our constitutional responsibility to consult and, if necessary, to accommodate the responsible resource development. The legislation that was passed last year, against the objection of the NDP, has enhanced and enriched the opportunity for aboriginal communities to participate.

I announced the appointment of Mr. Doug Eyford who will be reporting—

[The Chair, NDP, Joe Comartin]

The hon. member for Nickel Belt.

[Claude Gravelle, NDP, Nickel Belt, ON]

Mr. Chair, could the minister provide a definition for “directly affected” with respect to public participation in resources project reviews in sections 55.2 in the National Energy Board Act?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, I announced the appointment of Mr. Doug Eyford who is reporting directly to the Prime Minister. He is responsible for western infrastructure development and he is now, and will be, working closely with aboriginal communities to find ways that they can maximize their benefit from the development of our resources. The—

[The Chair, NDP, Joe Comartin]

The hon. member for Nickel Belt.

[Claude Gravelle, NDP, Nickel Belt, ON]

Mr. Chair, how many community, environmental and aboriginal groups did the department consult with prior to changing the National Energy Board Act to limit public participation and project reviews?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, since these questions require longer answers, I will answer the previous question.

Our government is committed to a robust National Energy Board review system that is based on science and the facts. The board must hear from those who are directly affected and may choose to hear from those with relevant information or expertise. Focusing consultation on individuals directly affected by a proposal before the NEB and experts with relevant information or expertise ensures the review is informed by the facts. The NEB—

[The Chair, NDP, Joe Comartin]

The hon. member for Nickel Belt.

[Claude Gravelle, NDP, Nickel Belt, ON]

Mr. Chair, let us see if he can answer this one.

Could the minister identify which departmental performance indicators in the 2013-14 report on plans and priorities provide targets related to aboriginal economic development?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, as I was saying, the NEB is committed to simplifying the form and the application process to those wishing to participate, and that is those who are directly affected by a proposal before the NEB and they have the right to be heard.

[Claude Gravelle, NDP, Nickel Belt, ON]

Mr. Chair, the answer is none.

Can the minister tell us how many aboriginal communities are located within 200 km of mining sites in Canada?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, the reason I said that there is a huge potential benefit for aboriginal groups is that in many cases they live close to natural resource projects.

Therefore, it is estimated that there are 32,000 aboriginal peoples currently employed in the natural resources sector and it is estimated that there will be 300,000 workers needed in the resources sector over the next decade. At the same time, nearly 400,000 aboriginal youth are expected to enter the labour force, creating an unprecedented opportunity for aboriginal employment.

[Claude Gravelle, NDP, Nickel Belt, ON]

Mr. Chair, how many agreements have been concluded between mining companies and aboriginal communities or governments across the country?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, about 300.

[Blaine Calkins, Conservative, Wetaskiwin, AB]

Mr. Chair, I would be more than glad to add my voice to the reasoned side of the debate in this chamber this evening.

I would like to thank the minister for taking his valuable time out tonight to answer questions, as ridiculous as some of them may have been from the other side. He does an excellent job in his leadership role as the Minister of Natural Resources.

As a member of Parliament from Alberta, natural resources are absolutely vital and important to our economy. We could not have a better minister looking after that portfolio.

I am grateful for the opportunity to be part of this important debate. I will discuss our priorities for the natural resources portfolio.

On May 2, 2011, Canadians gave our government a strong mandate to focus on jobs and the economy.

Since the depths of the global recession, Canada's economy has created over 950,000 net new jobs. This is the best performance in the G7. Our real GDP is now significantly higher than pre-recession levels, again the best performance in the G7.

However, we still face a fragile global economic recovery and too many Canadians are still looking for work. That is why we are squarely focused on implementing economic action plan 2013, our low tax plan to create jobs, growth and long-term prosperity for Canadians.

The economy is a top priority for our government. Our natural resource sectors contribute significantly to our economic success, generating close to 1.6 million jobs and driving almost 20% of our GDP. Canada is the world's fifth largest producer of oil and just our proven reserves are the third largest in the world at 173 billion barrels and as technology advances, more will become available.

We are also the third largest producer of natural gas. In fact, our recoverable gas resources are estimated to be as high as 1,300 trillion cubic feet.

The oil sands in particular have become one of Canada's great economic engines. This resource has attracted more than $185 billion in investment, $25 billion in the last year alone.

Over the past five years, royalties and taxes generated by the energy sector have added $25 billion a year to government coffers. That helps to pay for everything from roads and bridges to education and health care, the core services and infrastructure that Canadians depend on every day in every part of our country.

Within the next 25 years, the oil sands alone could be supporting 630,000 Canadian jobs, not just in Alberta but right across the entire country.

Canada has some very significant energy resources for export. We are about to become a major player in global energy markets through our exports of liquefied natural gas and oil, a role in which Canada can offer energy security and economic stability to the world. This is why it is so critical that we have the capacity to deliver this resource to new markets.

It will come as no surprise to the members of this committee that Canada's energy has traditionally flowed south. In fact, 99% of our crude oil and all of our natural gas exports are sent to the United States, a sole customer. However, the United States is now finding its own wealth of oil and gas reserves and in future will be less reliant on importing oil from Canada and elsewhere.

The International Energy Agency predicts that the U.S. will become the world's largest oil producer by 2020. That is why Canada must build and expand the infrastructure needed to move our product to tidewater for export to other countries as well.

Therefore, Canada is looking to build infrastructure to move energy both west and east as well as south. Right now there are four major proposed oil pipeline projects in Canada, two to connect Alberta's oil to the west coast and overseas markets, the other two to use existing infrastructure to link western production with markets in eastern Canada. We know pipelines are a safe and efficient way to transport crude to world markets. This is why it is vital that we continue to develop our pipeline capacity in Canada.

Our government strongly supports the opportunity for our refineries to process substantially more Canadian oil, generating jobs for Canadians and making our country less reliant on expensive foreign oil. Diversifying our markets will give Canada access to global markets and prices for Canadian crude oil and petroleum products. Currently, Canada is forced to sell its crude at a considerable discount. In February, this was as much as $30 U.S. a barrel below global prices. Today, the gap has closed significantly to just under $10 a barrel.

Differentials change quickly and reflect market forces, such as increasing production, adjusted transmission, infrastructure and difficulties accessing appropriate refineries. Producers, provincial governments and the Government of Canada all suffer as a result of elevated differentials, as do portions of the Canadian public via losses of jobs and reduced investment returns.

It is estimated that the Province of Alberta alone, loses, or leaves on the table, billions, up to $5 billion to $8 billion, a year in royalties alone on the price differential. Narrowing that price gap will ensure that Canadian producers can obtain the best possible price for their crude and ensure that Canadians realize the maximum benefit of this great resource.

Canada is also targeting new global opportunities for liquefied natural gas. Our recoverable resources are currently estimated at as much as 1,300 trillion cubic feet, as I said earlier, a number that will grow significantly as offshore development continues and new shale deposits are discovered. The Conference Board of Canada estimates that B.C.'s natural gas sector could attract more than $180 billion in investment between 2012 and 2035, an average of more than $7.5 billion in new investment each year. On the west coast, the first of a number of proposed LNG projects could be in operation as early as 2015. Based on potential and proposed projects, Canada could be exporting the equivalent of 75 million tons of liquefied natural gas per year from the west coast, with project startups expected before the decade is out.

Japan, South Korea and China have all expressed interest in LNG from Canada's west coast, and they are active participants in current Canadian LNG export proposals. Partners in one of the proposed LNG projects, for example, include Korea Gas Corporation, PetroChina Company Limited, and Japan's Mitsubishi Corporation.

India is now expressing interest in LNG exports from Canada's east coast. That is a logical step, since Canada's Atlantic provinces are closer to the west coast of India than any other place in North America. Our overall goal is to make Canada the platform for North American liquefied natural gas exports.

Canada is also aggressively pursuing agreements that will allow Canadian businesses to compete in some of the world's fastest growing economies. We know that between 2010 and 2035, the International Energy Agency predicts that global energy demand may grow by up to 35%. In this scenario, China, India and the Middle East will account for a staggering 60% of this increase in world demand. Already India is facing an electricity shortfall of about 8%, with peak shortages of more than 10% in 2011 and 2012. To meet its growing needs, India aims to more than triple its electricity supply within the next 25 years.

That is why our government was delighted that last month Canada and India took the important step toward full implementation of a nuclear co-operation agreement. Once the agreement is finalized, Canadian companies will be able to export controlled nuclear materials, equipment and technology to India for peaceful energy-producing purposes. When we consider that India's nuclear energy output is expected to more than double by 2020, Canada stands to gain a large portion of that growing nuclear energy market.

Canada has a diversified energy mix, one that can help drive the national economy and build global energy security.

As an Alberta MP, something that is near and dear to me is the expansion and diversification of our energy markets. It is absolutely critical for not only my province but of course the entire country. It is a top priority for the Government of Canada. To capitalize on these opportunities, our plan for responsible resource development introduced important new measures to eliminate unnecessary duplication that was weighing down project reviews and to get projects moving quicker.

Our plan will ensure Canada's regulatory regime is among the most efficient, effective and competitive in the world, while strengthening environmental protection and enhancing consultations with aboriginal Canadians. This includes important new measures to strengthen marine and pipeline safety, to ensure our resources can be transported safely to markets around the world.

We are also making every effort to ensure that aboriginal people in Canada can share the benefits of energy development in the years ahead. Just recently, the Prime Minister appointed a new high-level energy advisor, the Government of Canada's special federal representative on west coast energy infrastructure, to engage with aboriginal peoples in British Columbia and Alberta who could benefit from future development of energy infrastructure projects.

Realizing the potential of our energy sector is critical to our government's goal of jobs, growth and long-term prosperity. That is why our government is so focused on creating the right conditions for success.

I would like to thank my colleagues for their support and encouragement. If I am permitted, I would like to ask the more than capable minister a few questions deeply relevant to Albertans.

I would like to keep my questions related to pipeline safety, at least this initial question. The issue is near and dear. Albertans understand very well the benefit of pipelines. There are miles and miles, kilometres and kilometres of pipeline in Alberta, whether it is delivering natural gas to our homes or delivering product to upgraders, refineries or our export markets.

We are very concerned as well, because Albertans love their environment, their outdoors and their outdoor pursuits. We work hard in Alberta and we play hard as well.

We are all aware of the benefits that the energy sector generates, not only for Albertans, but for our country. However, we must ensure that this oil is transported safely. I would like to ask the minister what the government is doing to ensure that pipelines in Canada maintain a high safety record. As well, if the minister is able to share with us what the safety record of pipelines regulated by the National Energy Board is, that information would be most beneficial.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, I would like to thank the member for Wetaskiwin for his important question. I agree that pipeline safety is crucial to ensuring the transport of petroleum products across the country. The NEB subjects pipeline development proposals to an extensive review process that ensures that pipelines are safe for the public and protect the environment.

I am proud to say that pipelines regulated by the NEB boast a safety record of 99.9996%. This is an impressive safety record that we continually strive to improve. Our government has taken action to further improve pipeline safety. These actions include increasing the number of inspections at federally regulated pipelines by 50%, doubling the number of comprehensive audits and putting forward new fines for companies that break Canada's rigorous environmental protection.

Our government will continue to take a balanced approach to resource development that creates jobs and growth, unlike the NDP, which opposes all developments of pipelines and the jobs they create.