Mr. Speaker, it is my honour to rise today to second the motion by my colleague for Edmonton Centre. His private member's bill, Bill C-229, would repeal the Oil Tanker Moratorium Act, which has held back the country's economic development, the country's environmental development and the country's social development since it was passed over four years ago. This bill came about after Bill C-48, which was one of the last pieces of legislation the government enforced in its last mandate in the 42nd Parliament.
Undoing the Oil Tanker Moratorium Act is obviously very important. It is very important for the country for so many reasons, but it is very important to recognize the value it adds, if we were to repeal this, for our entire country. We cannot talk about the repeal of this act without talking about infrastructure in Canada. We are talking about ports and we are talking about pipelines. As much as we can talk about ports because this is a repeal of a shipping ban on oil products above a certain quantity, we really have to speak about pipelines because this emanated from the pipelines.
To get our resource to market, because our oil resource industry in Canada is inland, it has to traverse a long distance in order to get to the ports that will take it to market. Those pipelines are inextricably linked with the industry that supplies their product. That product, of course, continues to expand in Canada and legitimately continues to expand in Canada because it is a very well-known, environmentally friendly resource that the world needs at this point in time and is going to need for decades to come. For us to turn our backs on that reality at this point in time is short-sightedness on our part.
We are competing in a world where oil is produced in much less environmentally friendly jurisdictions around the world. We need to make sure for the environment's sake that we get the better product to market, which has much less of a footprint around the world.
The thing about the oil and gas industry is that it looks to getting its resource to market efficiently and economically. That requires a constructive regulatory environment to build infrastructure like pipelines. Getting a pipeline to the coast to get that product off the coast and to its customer is essential. Long-term planning and economics are involved in all of this. Every one of the companies that builds these or plans these puts those perspectives together at the outset so that it actually knows what the transparency of the outcome is going to be. That is something that has been lost in Canada, as far as getting projects built goes, and we need to address that.
Let me talk about a concept called “monopsony”. I am sure the members on the opposite side know that a monopoly happens when there is one supplier. A monopsony is when there is one customer for a product. That is what we have in Canada with our oil industry at this point in time. All of our exported oil from Canada goes to one international customer and that customer, of course, is the United States.
Getting oil offshore is essential to break that monopsony and, therefore, get a better price for our oil and gas resources. That is not happening right now. When we quantify what that means for the Canadian economy, it equates to about $16 billion per year on what we are currently producing in oil alone. Sixteen billion dollars is disappearing from the pockets of Canadians to somewhere else. That is because we get such a discount, what is called a “differential”, on our price in the American market. Sixteen billion dollars a year, for the last five years of the current government's mandate, would equate to about $80 billion to the Canadian economy. That is $80 billion. I know it seems small in relation to the amount of money that is going out the door right now, but $80 billion is real money.
The shame of this is that we export much of this product to our monopsonistic partner, the United States. It goes to refineries and some of it comes back to Canadians where we pay the world price for it, so we are not only losing money on the export but we are actually paying money on the import, which is a shame across this country.
Let us talk about the oil and gas industry here. It is a high-cost industry in Canada. It is high cost for a reason. Part of that reason is the regulatory and environmental demands we put on the industry to make sure it produces a product that is accountable to Canadians but also meets an environmental standard that is world class. It is the most environmentally friendly oil produced in the world.
I want my colleagues in the House to become more educated on the full-cycle environmental costs of the production of Canadian oil. It beats the world. We have many things to consider in this regard. Cost is one, but environmental performance is very important.
Canada produces about five million barrels of oil per day. Of course, this is before COVID. We have all cut back. The pre-COVID demand was about 100 million barrels per day. We have the third-largest reserves in the world, but we are down as far as production goes because of other constraining factors. We have a great resource and a great value to add to the world in this respect.
I would like to add something else economically that I am sure people in the House understand, which is the balance of payments. Canada right now has about an $18-billion balance of payments on its goods deficit in 2019. When we go back to how much we are not getting world price for our oil product, that is $16 billion. Our goods deficit would be whittled down substantially. There is no product we produce in Canada that contributes more to our balance of payments than oil does at this point in time.
We need to think about that because it means something. That means jobs and benefits for Canadians as they pay their taxes, get their pensions and contribute to social services across the country. Taxes, services, governments and individuals, we all prosper if we have a more economically beneficial industry.
Where is this $16 billion per year going? Who is making that money? It does not just disappear. Someone else is taking that world price; we are not. Somebody is making money and there is an interest here that has not been identified openly, which is an economic interest in the United States. They are also collecting taxes on a value-added product that we do not receive the benefit for here in Canada.
Into this mix on pipelines entered Enbridge in the mid-2000s, thinking it could solve so much of this with a new project called northern gateway and get our oil to market. That was a $7.9-billion project on paper.
It went through almost a decade of regulatory hearings. A total of $100 million was spent on the regulatory process in Canada in order to get our oil to market. This would have solved so many things, including breaking the monopsony, creating jobs, increasing production from an environmentally friendly resource across Canada and contributing, in a beneficial way, to the world environment.
In addition, indigenous participation was written into the agreement. They actually had equity participation in the pipeline, which was the first of its kind. This is something that is being replicated now, but this project was the first one that had indigenous equity participation.
In June 2014, that pipeline was approved with 209 conditions. Those 209 conditions included a spill response mechanism for the north shore of British Columbia. That spill response mechanism was essential to get around the moratorium on oil shipping that had been in place since 1972. I know my colleagues in other parts of the House would say that was necessary to ensure we did not have any oil spills off the north coast, such as they had, one time, in Alaska.
The 209 conditions, including the spill response, would have effectively solved that. There is risk here. There is risk in the U.S. continuing to export oil in the areas where Canada excludes the export of oil. This environmental benefit does not exist if it only constrains Canadian oil. It does not constrain any other oil that is in the area. This is not acceptable to Canadians.
The pipeline was overturned by the Liberal government. The Prime Minister, when he came in, made no bones about it. He was going to play to special interests without the balance of considerations about who was going to actually benefit from the cancellation and carry those costs. There are no costs without benefits, and there are no benefits without costs. That assessment was not made properly. I suggest that this ban on foreign shipping was wrong-headed and that this motion to undo it is completely acceptable. I support it, 100%.