Madam Speaker, I rise virtually today to speak in this emergency debate about a critical piece of infrastructure, in an industry that is critical to the economy of our country and our recovery post-COVID-19.
I will be splitting my time with the member for Cypress Hills—Grasslands.
Enbridge's Line 5 pipeline carries Canadian oil east, running through Wisconsin and Michigan. It is supplying about half the oil needs of Ontario and Quebec. For decades, the pipeline safely shipped oil that is refined in Sarnia into gasoline, diesel, home-heating fuel and aviation fuel. It is also a major source of propane used in Ontario and Quebec. A lot of farmers use the propane to heat their homes, barns and commercial greenhouses, as well as to dry grain. Sourcing propane elsewhere could drive the cost of ag production up, along with the cost of food for Canadian families. This would, without a doubt, hurt industry and competitiveness.
Canada's oil and gas sector suffered another tremendous blow with the cancellation of the Keystone XL pipeline project. Keystone was all about securing additional export markets for access for western Canadian crude, to help this struggling sector and secure better average prices for our resources. Another great threat to our economy is looming: the cancellation of one of the most vital supply lines in our country. Tens of thousands of good jobs are at risk and, with no doubt, there will be increasing costs for many goods and services.
While I appreciate the discussion today, I do find it somewhat ironic that many of the voices that we are hearing from were silent while the energy industry was struggling, other projects were being cancelled and capital was being deployed outside of our country. Today's discussion is a symptom of a much larger problem, a problem that is six years of relative inaction by the government. I agree with the Minister of Natural Resources that this industry is, and has been, a critical pillar of our economic success. He spoke today about the action the government has taken since this fall. The much larger question is: where has the government been for the last six years?
I acknowledge that Line 5 has the attention now, but where has the government been when it comes to supporting this critical industry? The government has had six years to negotiate an agreement on a North American energy strategy. The cancellation of Keystone XL and now this crisis on Line 5 demonstrate to me the lack of a proactive strategy by the government. I would also note that there is virtually no mention of this important sector in the budget and absolutely no mention of a strategy for greater energy, security and self-sufficiency.
I am a proud Albertan and I recognize the critical importance that the natural resource industry plays today and how critical it will be for our economic recovery. The government has sent many signals that do not support its argument that it sees this industry as being critical. Support is not demonstrated by enacting legislation like Bill C-48 and Bill C-69. Canada has a critical trading relationship with the U.S., but we can also provide energy solutions for other jurisdictions and displace countries that do not extract resources to the same high and improving standards we have demonstrated.
In April of this year, there was a paper written by Philip Cross, and I would recommend reading it, with the title, “How oil sands investment and production benefit Canada's economy”. I would like to take this opportunity to share with colleagues a few of its salient quotes. This sector is one of the key supply sources of energy. “The oil sands are a uniquely Canadian success story and an increasingly rare example of innovation in Canada.” It is “important for the industry and governments in Canada to set the public record straight on what this industry has accomplished and its importance to Canada’s economy.” “The largest oil sands plants today are operated by Canadian companies...[such as] Suncor Energy, CNR, and Cenovus.” “Canada’s participation in the oil sands extends to First Nations.”
A number of indigenous ventures have participated in the oil sands: One Earth, Mikisew Group of Companies, Boucher, Tuccaro Group and Acden, to name a few. The economic benefits are enormous: $8.3 billion in oil sands investment represents 4.5% of all the business investment in Canada. “This exceeds all investments made by the retail trade industry, construction, or all business services, and is four times more than auto...” “Both investment and production in the oil sands are important to Canada’s economy...” Some $10 billion in investments results in Canada's GDP going up by 0.5% and increases overall employment by over 81,000. Combined with Ontario, Central Canada reaps about 13.6% of the jobs.
Canada's oil and natural gas resources are among the most responsibly produced energy resources on the planet, under the most stringent environmental regulations in the world. In Canada's oil sands, conditions have fallen significantly. According to data from the Government of Canada's 2019 national inventory report, greenhouse gas emissions in Canada's oil sands have fallen 34% per barrel since 1990, and they are going down further.
Media portrayals rarely present what the oil sands mine looks after the land has been rehabilitated, something all companies must commit to and set aside funds for when they begin operations. The boreal footprint of the oil sands is significantly less when compared with that of what is flooded to build massive hydro power projects.
Let us talk about a bit about innovation. The Alberta carbon trunk line system is the world's newest integrated large-scale carbon capture utilization and storage system. Designed as the backbone infrastructure needed to support a lower-carbon economy in Alberta, the ACTL system captures industrial emissions and delivers the CO2 to mature oil and gas reservoirs for use in enhanced oil recovery and permanent storage. As the largest capacity pipeline for CO2 from human activity, it is capable of transporting up to 14.6 million tonnes of CO2 per year, which represents 20% of all current oil sands emissions, or equal to the impact of capturing the CO2 from more than three million cars. The future of a lower-carbon economy relies on key infrastructure investments like the ACTL system to provide sustainable solutions to global energy requirements.
I wanted to illustrate today that we have these enormous assets and that we should recognize the fine work that industry has done to supply this important resource. Today I heard much discussion about an energy transition, but we are in the here and now. There are significant jobs at risk not only in the energy sector, but in sectors that depend upon a safe, secure supply of energy. Canada relies on exports to fuel our economy, and without the safe supply of energy, we run the risk of seeing our manufacturers, agricultural sectors and other industries go down, as they depend on this supply.
I have no doubt there will be a transition over time, but in the interim, I suggest that Canada has the opportunity to be a market leader in the supply of energy as we build into this transition. Oil will be critical during this transition, but we also have a tremendous opportunity to be an exporter of LNG and nuclear technology as we displace coal as an energy source.
Many speak about the new jobs that are about to be created to replace these valuable energy sector jobs, but I have yet to hear a substantive plan that demonstrates what those jobs will be and in what specific sectors they will be. The hard reality is we are a large country with a small population. We have built infrastructure and an impressive social safety net that supports people across the country. Much of this is as a result of the revenue produced from the natural resources and commodities that we have been blessed with. We should not lose sight of this important fact.
Line 5 is an important piece of this infrastructure, and shutting it down would have a dramatic impact on the citizens and industry in Ontario and Quebec. This makes us abundantly aware of the importance of energy security for our country. The last thing we want to rely on are alternatives for transportation, such as rail or truck traffic, or foreign markets for supply.
I hope the government will recognize not only the importance of Line 5, but also that the natural resources sector could be an important part of our future success. Jobs and people's economic well-being are at stake. My province has taken the brunt of the economic slowdown, and we are overdue for the government to do more than talk about the support of an industry. It should demonstrate with action.
It is time for the Prime Minister to show Canadians the specific plan for the natural resources sector and the thousands of jobs that this sector employs. The industry is ready and willing to be a substantive part of our economic recovery. This is about leadership, and it is also time for the Prime Minister to reach out to the President and reinforce the economic importance of energy security for both our countries, and ensure the continued operation of Line 5.
