Madam Speaker, I will begin by welcoming my hon. friend from the neighbouring riding of Victoria to this place as a new member of Parliament.
I am going to start, actually, by answering a question that was directed to the hon. member for Victoria just moments ago, and that is to clear up some misconceptions. As a matter of fact, having been in the House all day through the debates, I would like to dedicate the time I have to cleaning up misconceptions.
The first one concerns British Columbia's exports of coal, and 95% of the coal produced in British Columbia, which is 95% of the exports, is metallurgical coal. It is designed for purposes that do not include direct burning, do not produce electricity, and have an entirely different kind of greenhouse gas footprint from thermal coal.
It is an interesting story about thermal coal exports, although they are relatively minor. I think there are, off the top of my head, $12 billion in exports in metallurgical coal to $2 billion in exports of thermal coal. The thermal coal exported from B.C. is kind of an interesting story. It comes from the United States. It is shipped up through and over the roadways through I think South Surrey—White Rock and over to the port of Vancouver.
There is tremendous concern locally because the coal dust contaminates the air, so it is an air pollution problem and a health issue. For those and other reasons, I suppose, the Liberal Party platform in 2021 promised to end the exports of thermal coal through the port of Vancouver.
Members might have wondered, as I explained the situation, why it is that thermal coal comes up by road from the U.S. just to go to the port of Vancouver for export. This is because, all down the western coast of the United States, shipping thermal coal to Asia has been banned for climate reasons. However, Canada is very accommodating. It takes the thermal coal from across the United States, takes it to the port of Vancouver and ships it to China.
We did have a bill before this place, Bill C-33, which was at the point of third reading when it died on the Order Paper January 6, and it would have lived up to the Liberal election promise of 2021 to ban the export of thermal coal from the port of Vancouver.
I hope to see this bill reintroduced at some point. It had a lot of other measures that were important for coastal communities in British Columbia, as well as for rail safety. Again, Bill C-33, as it stood, ready to be passed at third reading, would have ended the practice of bringing in U.S. coal for purposes of burning for electricity. As a number of speakers have mentioned, it would be best not to burn any thermal coal for electricity anywhere on the planet.
It still, until recently, was the cheapest way. It certainly is the cheapest of the fossil fuels. It used to be the cheapest way to produce electricity, but that is no longer the case. Solar panels produce energy and electricity far more cheaply than coal and without the side effects of global warming and immediate health effects. As a matter of fact, the reason the Province of Ontario took the steps years ago to ban burning coal for electricity was for reasons of human health, to reduce hospital visits for people who suffered from asthma and hospital spikes that occurred during smog days.
Another area to clear up a misconception, and this one is more complicated, is what the difference is between exporting natural gas when found in pockets, pools of actual natural gas, versus fracking for unconventional natural gas. When we go unconventional, there are more emissions.
Let us imagine The Beverly Hillbillies for a moment, the shooting up of oil out of the ground and how happy Jed Clampett was. We do not have oil like that anymore. It is harder to get to oil, so there is that return on investment on oil that has to do with the energy invested to get the oil, and we are down to the place of diminishing returns.
By the time we get to bitumen, we have to put a tremendous amount of effort into getting the bitumen out of the ground, and that has been done in the oil sands. Another place where we see unconventional oil is what blew up in Lac-Mégantic, getting crude oil out of Bakken shale.
Again, once we have to get fossil fuels out of layers of geological formation, it takes more energy to get it, costs more and involves more pollution.
Going back to natural gas, in British Columbia, our natural gas comes from fracking. In the areas where there is fracking, we have earthquakes caused by fracking. We also have water contamination from the composition of the water that is injected deep into breaking up the fractured gas that occurs in areas of British Columbia, as well as other areas where fracking produces natural gas. It does not have the same impact on climate as the natural gas that was found in pooled natural gas. Fracked natural gas, because it is fracturing different layers geologically, has a tremendous volume of what are called fugitive methane emissions. Methane is a far more powerful greenhouse gas unit for unit than carbon dioxide.
While some people here, well-meaning I know, have referred to fracked natural gas as a transition fuel, it is conventional natural gas that could be called a transition fuel. Unconventional natural gas, as in fracked gas, is not a transition fuel when examined by experts like David Hughes and others in looking at the carbon footprint for the whole cycle of producing fracked natural gas. It has the same carbon footprint as coal through its whole life cycle because of the fugitive emissions, the methane that is released by the fracking.
The liquefied natural gas project that the Prime Minister has announced is on the government's short list for a project of national significance, as other members have pointed out, has already gone through all stages of approval, so we can hardly say it is being fast-tracked. However, we cannot say it is Canadian either. It is a consortium of a number of companies from around the world: Petronas of Malaysia, PetroChina of the People's Republic of China, one company from Japan, one company from Korea, and a very progressive alliance with the Haisla Nation. It is not Canadian.
Going back to other misconceptions, there has always been great talk of the east-west pipeline, if only it had gone ahead. The difficulty there is that an east-west pipeline for dilbit, dilbit being diluted bitumen, because bitumen is a solid, would only succeed if we diluted the bitumen. The only reason we are doing that is to get it to flow through a pipeline.
Another misconception is about, as I mentioned, the explosion of Lac-Mégantic. That was when Bakken shale blew up. It is appalling how negligent the shippers were. Nobody even realized when putting it on board a train that Bakken shale, if it blew up, would create a fireball and kill many people. Bitumen put on a train is 100% safe. Solid bitumen, when loaded into a train car, could fall off a high cliff and crash onto the cliff below and would lie there like a lump. We could not set it on fire with a blowtorch because it is a solid. It is a tar.
Now that we have built the pipeline, which the Canadian public paid $34 billion and counting for, there is this great argument, speaking of misconceptions, that if we could only get our bitumen to tidewater, we could get rid of the price differential because it is so unfair. It is because the bitumen is landlocked, so the story goes, that we cannot get a fair price for our bitumen compared to West Texas Intermediate. If anyone has looked at the price lately, they will find, having gotten bitumen to tidewater, we are not getting paid more for it. That is because bitumen is not even synthetic crude. It cannot go right into a refinery. Therefore, wherever the shipped dilbit goes, when it gets to its destination, the diluent has to be removed, the “dil” part, which means fossil fuel condensates like naphthalene or even benzene. Then we have the solid lump of tar again. Then we have to put that through an upgrader. Once we have put it through an upgrader, we can refine it.
With respect to the east-west pipeline, the Irving refinery in Saint John, New Brunswick, made it very clear that it had no intention of ever building an upgrader. Therefore, at its end-point destination, when that project was a live one and had a private sector proponent, it was to go on tankers and leave the port of Saint John, New Brunswick, to go somewhere else.
What is happening now that we have the port at what was the Kinder Morgan pipeline? We now have the port of Burnaby shipping out dilbit, and some of it is going to China. As I said, it is a solid, and an astonishing reality is that one of the reasons we do not get more money for it now that it reaches tidewater is it is still a product of inherently low value and is very expensive to produce. To get all the way over to China, about a third of what—