Mr. Speaker, Bill C-46 is a piece of legislation with many compelling reasons to support it. First and foremost, the legislation would raise the bar even higher on Canada's already stellar pipeline safety record. Given the 99.999% safety record federally regulated pipelines have, we know that pipelines are a safe and efficient way to transport energy. However, as close as this track record is to perfection, we know that Canadians expect us to improve on this record even further. Our goal is simple: no spills. That is precisely what this legislation is about.
As the Minister of Natural Resources made abundantly clear, the Government of Canada is committed to ensuring that Canada has a world-class safety regulatory system for pipelines. He left no doubt that there will be no development unless rigorous environmental and regulatory reviews indicate that they are safe for Canadians and safe for the environment, because public health and environmental performance are non-negotiable.
The pipeline safety act is a solid illustration of responsible resource development in action. It would strengthen environmental protection and would create new jobs at home while providing energy security for our international trading partners abroad. The legislation is just the latest concrete action in this commitment.
The bill builds on previous pipeline safety measures our government has implemented. These have given the National Energy Board new authority to levy administrative monetary penalties and to increase the number of board inspections and audits.
I know that Canadians can count on our government to take action. Our pipeline safety act would go even further, strengthening incident prevention, preparedness, response, liability, and compensation. The legislation would give the National Energy Board even greater powers to hold the pipeline industry to account and would ensure that the sector would pay a hefty price if it let environmental standards slip.
These measures alone are reason enough to support the bill, yet there is another equally critical factor to consider: our time-limited opportunity to ensure that Canada's energy sector will continue to succeed, creating future prosperity for all Canadians.
As we know, Canada has the third-largest proven oil reserves in the world and is the fifth-largest producer of natural gas. These valuable resources are already a major economic driver in our country. The oil and gas sector accounts for over 190,000 direct jobs and nearly 7.5% of Canada's gross domestic product. Canada sold $117 billion in energy products to the world in 2013. This represents over a quarter of our total merchandise exports. That money makes its way into the pockets of all Canadians, whether directly, through business activity and jobs, or indirectly, through the benefits of resource sector royalties.
On average, for the past five years governments at all levels collectively received about $23.3 billion annually from the oil and gas sector. That is equivalent to the amount spent educating 1.6 million Canadian children in the public school sector or what governments would be spending on health care for nearly five million Canadians. This figure is just a fraction of what it could be. Hundreds of major resource projects worth more than $675 billion are under way or could come on stream over the next decade. This is truly a once-in-a-generation opportunity.
The Canadian Energy Research Institute says that over the next 25 years, the total value of the goods, services, and jobs generated by the oil sands alone could reach $2 trillion. That works out to $85 billion a year, and I have only talked about oil thus far.
According to the Conference Board of Canada, between 2012 and 2035, the natural gas industry could invest over $386 billion in Canada. Close to half of that, $181 billion, would be destined for British Columbia.
Of course, none of this will happen without adequate infrastructure to move our energy products to coastal ports in world markets. Without pipelines, Canadian oil and gas will continue to be stranded. In fact, we are already paying a price for the lack of pipelines. Discounted oil prices led to an estimated loss of $13.3 billion in revenues to Canadian producers in the year 2012.
We need new pipelines to reach new and different markets than what we have traditionally relied upon in the past. At the moment, virtually all Canadian exports of oil and gas are headed south to the United States. Canada will continue to be a key supplier to our American neighbours, but shifting global demand and supply conditions make it imperative that we broaden our customer base. Fortunately for us, there are enormous and fast-growing replacement markets we can tap into if we make our energy supplies available to them.
The International Energy Agency predicts that demand for energy will increase by one-third over the next 25 years. Two countries, China and India, will account for nearly half the increase. Some may suggest that renewable and alternative sources of energy negate the need for oil and gas. However, the International Energy Agency says that even with the progress being made in this area, it will not be enough to meet the demand, and that by 2035, three-quarters of the global energy demand is expected to be met by fossil fuels.
Canada can seize this historic opportunity to create high-quality jobs, economic growth, and long-term prosperity for all Canadians. The conditions are ideal for us to do so. Beyond our energy prowess, Canada has other important advantages that support the responsible development of our energy resources and associated infrastructure. For instance, Canada is one of the best countries in the world in which to invest. Canada placed second in Bloomberg's recent world ranking of business-friendly nations, and KPMG has concluded that Canada's total business costs are the lowest in the G7. They are more than 40% lower than the United States.
To capitalize on these strengths, our government has launched an ambitious free trade agenda. Free trade deals have been reached with 10 countries. They include Canada's most comprehensive trade agreement to date, which is with the European Union. The European Union represents a market of 500 million people and annual economic activity of $18 trillion. It is the largest marketplace in the world.
More recently, Canada has concluded a free trade agreement with the Republic of Korea, the fourth-largest economy in Asia. This landmark achievement will provide access for Canadian businesses to a population of 50 million people.
We have the perfect mix of growing global energy demand, growing Canadian energy supplies, and an economic environment conducive to increasing energy trade around the world. All can work to Canada's benefit.
The pipeline safety enhancements proposed in this new legislation to strengthen incident prevention, preparedness and response, and liability and compensation will help prepare Canada for these new economic opportunities. This legislation clearly demonstrates our government's commitment to public safety, environmental protection, and meaningful engagement with aboriginal people. By emphasizing prevention, responding quickly in the event of an incident, and making sure that companies, not Canadians, are liable for any costs, the act would ensure that we maintain a truly world-class safety system.
For all these sound reasons, I urge all parties to support this worthy and necessary legislation. The time to act is now.
