Mr. Speaker, today I request an emergency debate on the Canadian energy crisis, which is a national emergency. It impacts all of Canada and disproportionately hurts Alberta.
The oil and gas sector has already lost more than 100,000 jobs and over $100 billion since 2015. That is eight times the GDP and more jobs than the entire aerospace sector, or almost as many jobs as the entire auto sector, which would rightfully be a national emergency for any other federal government and all MPs.
The ongoing and widening price differential for Canadian oil is threatening to add an estimated 20,000 new job losses starting in January 2019. Major producers with decades of history in Alberta are cancelling expansions and curtailing production and are at risk of going bankrupt. ATB Financial predicts that this crisis could cause a recession in Canada, and the Bank of Canada already estimates no new energy investment in Canada after 2019.
As you said in your recent decision to grant an emergency debate on the closure of the GM plant in Oshawa, economic events that cost thousands of jobs deserve an emergency debate. This crisis in the energy sector is such an emergency. It has already put more than 120,000 Albertans out of work, and it is causing job losses across Canada, with no end in sight.
Why is this an emergency today? Over the past decade, Western Canadian Select has sold for an average of $17 U.S. less per barrel than West Texas Intermediate. This month, the differential hit a record of around $50 U.S., close to where it remains today, wreaking havoc on the industry, and by extension, on the entire Canadian economy. Every day, $50 million to $100 million is lost in Canada because of this differential. Even the Prime Minister said last Thursday, “This is very much a crisis.” However, it is a direct result of federal government policies, and it is within the federal government's power to fix it.
The Liberals' cancellation of the northern gateway pipeline, which would have exported to the Asia-Pacific, and the Liberals' killing of the energy east pipeline proposal, which would have secured Canadian energy independence and exports to Europe, have disadvantaged Canada, especially with regard to the U.S., which continues to be not only Canada's number one energy customer but also, right now, Canada's number one energy competitor. Of course, the Trans Mountain expansion remains stalled indefinitely because of the Liberals' failure, with no start of construction estimated for even next year and not a single shovel in the ground at the start of this year, as the Liberals promised.
This lack of pipeline capacity and the landlocking of Canadian oil because of federal government policies that have stopped new export pipelines are direct causes of the price discount.
The private sector and the provinces warn that the Liberals' “no more pipelines” bill, Bill C-69, will stop all new pipeline proposals in the future in Canada. That should be a concern for every single member of this House of Commons, given that the energy sector is the number one private sector investor in Canada, that energy is Canada's second-biggest export and that Canada is home to the third-largest reserves in the world and the fourth-biggest exporter of Canadian energy, with a track record of responsible energy development literally second to none on this planet.
This emergency in the Canadian energy sector and the catastrophic job losses not only in Alberta but rippling through all sectors across all provinces is a national emergency. The Prime Minister has said it is so. Therefore, I would submit to you that an emergency debate is needed to get the answers Canadians deserve and demand.