Madam Speaker, I will split my time with my colleague from Regina—Lewvan.
I am grateful to participate in this emergency debate, which is of course of great national importance in general but also to the people I represent in particular.
The new U.S. president's decision to cancel the permit for the Keystone XL pipeline is not remotely surprising, but it is a short-sighted political move that ignores evidence, economics and common sense, as was the case the first time around when he was vice-president. With the stroke of a pen, thousands of people are out of work in the middle of a global crisis, and the transportation opportunities for world-class Canadian oil are set back yet again.
I am speaking as I always do: for the people who have been out of work or who are scraping by with inconsistent work, who are suddenly out of a job with few places to turn, for families and communities whose futures are precarious, all through no fault of their own.
Canadians whose livelihoods depend on the oil and gas sector are rightly anxious about their futures and are struggling with complete and utter financial despair. Entire communities are in fact at risk because of the policy- and legislative-driven historic levels of bankruptcies and the decline in investment in Canadian oil and gas. That damage ripples through other sectors, risks jobs and harms businesses right across the country.
Since 2015, more than 200,000 jobs have been lost in Canada's energy sector. The devastation is real in more ways than one. In Alberta alone, a recent University of Calgary study said that for every 1% increase in unemployment, 16 Albertans will die by suicide. Never has a Canadian industry faced such a severe triple threat: global oversupply and demand drops, a collapse of global prices and a self-imposed lack of market access, domestic policies designed to drive investment away, killing businesses and jobs.
It is bad enough when the U.S. president and other American legislators block Canadian energy infrastructure despite the economic security, political and continental ties between our countries, and that the reality is that the U.S. sits on tens of thousands of kilometres of pipeline networks and is a major oil importer from Canada.
The decision is not a surprise to anyone when we consider the domestic political considerations of the new president. Also, this decision is perfectly aligned with the best interests of the United States. The U.S. is currently a world-leading energy exporter and producer and put the policy framework in place for the private sector to enable the U.S. to become rapidly energy independent and self-sufficient, an objective that actually started under the previous Democrat administration when the current president was vice-president and was expedited and secured under the most recent administration.
What is most galling of all is how the Prime Minister of Canada and the Liberal government have done virtually nothing to fight for KXL and have put Canada in such a vulnerable and powerless position. Certainly the Liberals have turned their backs on Canadian energy workers and their families and are ignoring the disproportionate pain and damage they have caused to Albertans, but that is not new.
The reality is that the Prime Minister has never actually championed the KXL pipeline. It should chill everyone that despite close ideological ties between the Prime Minister and the U.S. president, and despite a number of aggressive measures in the pursuit of the sham of social licence that the Prime Minister has imposed on Canada, including currently pushing a legislative framework that is almost unparalleled around the world and KXL's proponent saying the pipeline will be at net zero, it was killed on arrival.
The Prime Minister's weak response to former president Obama's Keystone veto in 2015 was to simply say that he was “disappointed”. He failed to correct the repeated myth that Canadian oil is “dirty”, especially at a time when the U.S. imported record levels of Canadian oil, more than it ever had before in the history of its country at that same time. The Prime Minister did not bother to point that out either. He failed to correct the record on Canada's stronger environmental standards for oil and gas and that Canada is a long-time environmental leader in responsible energy development.
The Prime Minister failed to make the case for KXL to American decision-makers then and now, and he failed to support TransCanada in the courts, in the States or through the NAFTA dispute resolution mechanism at all times in between. Of course this is all easy and obvious to understand. The Prime Minister just does not actually want this pipeline to be built. He said himself that he wants to phase out the oil sands. He has blocked pipelines and targeted Canadian oil and gas with harmful policies repeatedly. His inaction on KXL in 2015 and now in 2021 just proves the point.
What is blindingly clear, and Conservatives have been warning about this for some time, is that Canada must urgently get new export pipelines to new markets beyond the United States.
The brutal reality is that if the Liberals had not vetoed the northern gateway pipeline, deliberately killing thousands of jobs, dozens of benefit agreements with indigenous communities and the only stand-alone option for export to the Asia-Pacific for Canada, and if the Liberals had not intervened politically to kill the only private sector west-to-east pipeline proposal that could have secured Canadian energy independence while reaching European markets with double standards, last-minute regulatory changes and hurdles, Canada would actually have two new export pipelines to markets other than the U.S. right now. However, the Liberals killed both of them, so now the Canadian Minister of Natural Resources, the very minister who should be pushing for this project the most, said that we must simply “respect the decision”, and Canada's ambassador to the U.S. says everyone should move on.
Conservatives have backed Keystone XL every single step of the way. The independent National Energy Board and the Conservative government approved Keystone XL in 2010, and in 2012 the former Conservative government launched a major multi-year lobbying effort that successfully secured the support of the majority of U.S. lawmakers. After the Liberals were in government in 2016, the Conservatives called on them to support TransCanada's NAFTA appeal of a Keystone XL veto, but the Liberals were MIA. The previous administration made a common sense, fact-based decision, put economic best interests, the Canada-U.S. partnership and the standard of living and energy security of North Americans ahead of anti-energy ideology and short-sighted activism by reversing the previous veto.
Now here we are, back where we were in 2016 because the Liberal government will not actually fight for pipelines. That should be an important point to the whole country, because the lack of capacity to bring Canadian oil and gas to more international markets is a national economic crisis. The discount on Canadian oil cost Canada hundreds of thousands of jobs in the energy and manufacturing sectors. It is decreasing the value of Canada's financial markets and depriving federal, provincial, territorial and indigenous governments of billions of dollars in lost revenue long into the future, but that is the consequence of the Liberals' decision to kill new Canadian pipelines to export markets, and the real travesty is that they did it while the U.S. ramped up its own domestic production and removed its own ban on exporting American crude oil in its own interests. The Liberals have failed completely to secure Canada's own interests. The U.S. is both Canada's biggest oil and gas competitor as an exporter and Canada's biggest customer for oil and gas, and Canada's energy remains landlocked and captive to U.S. purchasers.
The government also stalled the Trans Mountain expansion by extending the regulatory process and by failing in its own process of indigenous consultation. TMX was supposed to be operational by December 2019. Now TMX is not estimated for completion until December 2022, and at least $12.6 billion in Canadian tax dollars have been spent when the private sector proponent only really needed legal and political certainty to proceed. Unfortunately, the reality is that TMX will not even address Canada's market diversification issues, because while the marginal part of its shipments will go to the Asia-Pacific, the vast majority will go to the existing American refinery network.
The tanker ban, Bill C-48, now law, prevents the potential of pipeline infrastructure for export to the Asia-Pacific as the Liberals designed it to do, and as the private sector economist policy experts and Conservatives warned, the Liberals' no-more-pipelines bill, Bill C-69, which is now law, will guarantee that no new pipelines will get proposed or manage to get approved in Canada in the future.
Of course, another urgent concern is that Michigan's governor is considering shutting down Line 5. Since the Prime Minister does not care about what happens to Alberta, let us hope that he figures out the risk in a hurry and cares about what it would mean for Ontario, because Sarnia's mayor said the city is set to lose 5,000 jobs and cannot risk losing one single job. Six refineries in Ontario and the U.S. Midwest rely on Line 5, and it also supplies all of the fuel to the Pearson airport.
Scott Archer, the president of UA local 663 in Sarnia, said shutting down Line 5 “would entirely cripple the economy of this region.” While anti-energy activists celebrate the shutdown of these pipelines, the Americans are laughing all the way to the bank, because while our Prime Minister and the Liberals were busy blocking energy infrastructure in Canada, the U.S. was on track to become energy independent.
The U.S., of course, has rapidly become self-sufficient while also leading the world as the largest oil exporter, but that is because these decisions are not about the environment; they are based on competition and business interests. The Liberals fell for it, and all Canadians have lost as a result. Make no mistake: I do not begrudge the Americans for securing their own energy supply. I am just profoundly angry and mind-boggled that the Canadian government did not do the same in Canada's best interest.
Meanwhile, major parts of Canada remain dependent on foreign oil from countries with nowhere near the environmental social governance, regulatory or labour standards, or performance of Canada. As a result of our Prime Minister's actions and inaction, in turn Canadians everywhere lose.
If the Prime Minister cares about national unity and about securing Canada's own economic best interests in every region and every province of the country, he will reverse his destructive direction over the last five years and stand up for Canada for once.