Mr. Speaker, I will split my time with the new, great member for Terra Nova—The Peninsulas.
In 2023, the Liberals imposed yet another step in their anti-Canadian energy agenda, an oil and gas emissions cap they touted as the first and only kind in the world, designed to limit Canadian oil and gas production, which will really cap and kill Canadian jobs, businesses, private sector clean tech, and revenue for all levels of government to provide programs and services Canadians value. Its true intent, to limit production of Canadian oil and gas specifically, is clearer in the words of the current Prime Minister, who was a senior economic and energy adviser to the then prime minister, Trudeau, when he announced it.
The current Prime Minister, of course, said, “as much as half of [proven oil reserves] need to stay in the ground.” The Liberals, 20 months and three weeks ago, said the Canadian oil and gas cap was bold climate leadership. However, common-sense Conservatives saw it for what it was: an unprecedented, arbitrary production cap, the only one of its kind in the entire world, and self-harm to Canada by our own federal government.
That is right, and let me be extra clear about it. No other country, and importantly, no major oil- or gas-producing country, has imposed an absolute cap federally on its own production: not the United States, Canada's biggest energy customer and competitor, which, because of the last anti-development Liberal decade that killed at least four Canadian pipelines and dozens of LNG projects, turned the world away from Canada and drove hundreds of thousands of jobs and billions of dollars in major projects out of our country; not Norway; not Saudi Arabia; and not a single OPEC nation made up of hostile, anti-freedom regimes with lower and often non-existent environmental and human rights standards.
Even though the current Prime Minister is another Liberal, he suddenly claims to want to make Canada an energy superpower and put shovels in the ground on major projects at unimaginable speeds not seen in generations. However, how can Canada be an energy superpower when the Liberal government blocks Canadian energy production and exports with its own laws and policies that are all still on the books?
How can Canada lead when the Liberals decided to impose a policy that interferes in provincial jurisdiction and that experts, proponents and indigenous entrepreneurs all say will kill major projects and thousands of jobs? The layer of the Canadian oil and gas cap on top of other anti-energy laws and policies block the very projects that would create Canadian jobs, reduce emissions and get Canadian oil and gas out to allies and to global markets.
The last, lost Liberal decade of domestic policy attacks on Canadian energy has put Canada in a vulnerable, dependent position that was totally preventable. Canada of course still sells up to 90% of our oil and gas to the United States at steep discounts because the Liberals killed two potential export pipelines outright: one to the west coast to access growing Asian markets in the most direct, affordable and safest route, and one west-to-east pipeline that would have ensured Canadian self-sufficiency with western oil for eastern refineries and more competition for customers with exports to Europe.
At the same time, both Democrat and Republican administrations turbocharged the American production and exports of oil and LNG, turning the U.S. into the world's leading global supplier, while the Liberals, while watching all this happen, increased their stranglehold on Canadian oil and gas and workers at every single step. Various experts estimate the discounts cost Canadians big, about $25 billion every year. Just imagine what infrastructure, programs or services that revenue could provide right now and could have contributed during the last decade to benefit Canadians everywhere, if the Liberals had not spent the last decade killing active private sector pipeline proposals to ensure that no new ones would be proposed.
The truth is that the Liberals announced the Canadian oil and gas cap publicly with little consultation and economic analysis in advance. The Prime Minister was even in another country when he imposed it. The Liberal-NDP-Bloc coalition at the time did a short study on it at committee, but Conservatives had to dissent in order to properly highlight the cautions about the wide-ranging and catastrophic impacts of the Canadian oil and gas cap.
Witnesses during the committee work did warn them. Dale Swampy of the National Coalition of Chiefs said the government “treat[s] the oil and gas sector like they're the enemy and a problem to be fixed” and that “a cap on emissions will be, in effect, a cap on production”, which kills economic reconciliation opportunities for indigenous communities and business owners who need it most.
The Liberals were warned the cap would harm indigenous, rural and remote communities the worst, but they did not care, even though Canadian oil and gas developers spend about $14 billion through procurement from 585 indigenous-affiliated vendors across 110 municipalities and 45 indigenous communities. That is real money that makes a real difference for indigenous people, all threatened by the revenue-killing, job-killing Canadian oil and gas cap.
Since then, the independent Parliamentary Budget Officer has reported that the Liberals' oil and gas cap will kill 54,000 jobs by 2032. That is almost double the population of the Alberta-Saskatchewan border city of Lloydminster. There are hundreds more cities of that size across Canada. That number of jobs will be lost in six years because of the cap, a cut of $21 billion from Canada's GDP. The cap will shrink Alberta's GDP by 4.5%, and the rest of Canada's economy by 1%. It will cause $191 billion of lost activity in Alberta and $91 billion in the rest of Canada.
Why should this matter to Canadians in every part of the country? This is why: The oil and gas sector contributes 7.7% of Canada's GDP. It is still Canada's top export despite the damage the Liberals have done. Over $208 billion every year is what it contributes to Canada's GDP, with $166 billion from direct activity and $42.8 billion from the supply chain. It supports over 446,000 direct and indirect jobs, including more than 10,800 indigenous jobs.
Nearly 900,000 Canadians depend on the oil and gas sector through spinoff or induced job creation. These are also not easily replaceable minimum wage jobs, since the average compensation for an oil and gas worker is nearly twice the national average for goods-producing sectors. Alberta employs 54% of the supply chain workers, but B.C., Ontario and Quebec together account for over a third of those jobs. That means that the cap threatens jobs, paycheques and government revenue from Vancouver to Montreal, and everywhere that oil and gas is produced, from Fort St. John to St. John's and Saint John.
The Conference Board of Canada warns that between 2030 and 2040, the cap could reduce Canada's GDP by up to $1 trillion, and strip $151 billion in federal revenues, money that could go to defence, to border security, to fighting crime and to federal programs, and could be shared with provinces to build hospitals, schools, roads and provide social services.
Proponents across Canada agree the cap is bad policy and that it disadvantages Canadian businesses and jobs. Since growing Canadian oil and gas production and exports is the solution to ensuring Canadian energy security and to help lower emissions globally, the Liberals were warned “this could lead to greater global emissions as we see more coal being utilized than natural gas and sources of supply...coming from jurisdictions that don't have [Canada's] high standards.”
World-class oil and gas operators across Canada point out their ongoing aggressive reductions in both absolute and emissions intensity, which, by the way, the Liberals' oil and gas censorship bill precludes them from talking about. The cap could also have the opposite impact from what its proponents claim, by driving more projects and investment out of Canada, and could “bring all action to a halt”.
The truth remains today that the oil and gas sector, among all private sector developers, invests the most annually in clean tech and emissions reduction technology, more than all other sectors in Canada combined. Warnings that the cap will do exactly what the Prime Minister said he wanted it to do, which is to keep oil and gas in the ground and kill businesses, jobs and government revenue, and that it will also not even achieve the environmental outcomes its proponents claim, should be heeded.
The Liberal oil and gas emissions cap is a production cap. The former environment minister also admitted that oil and gas production falls under provincial jurisdiction, so the cap also inflames already divided provincial governments and sparks legal challenges with more uncertainty that drives away investment.
While Canada caps production, of course the world is passing Canada by, because the Liberals have let them. The EU has signed a $750-billion deal for American energy, and other countries have been forced to sign deals with hostile authoritarian regimes for LNG after the Liberals spent 10 years saying there is no business case.
The Conservative motion today is very clear. We are the only party fighting to repeal the job-killing, economy-killing, emissions reduction-killing cap, full stop. Canadians cannot afford another lost Liberal decade. The motion is clear: Repeal the cap. Unleash Canadian energy to make a strong, united Canada self-reliant—