There is an alternative reality in which Canada, instead of engaging in economic self-destruction, built
Northern Gateway, Energy East and Keystone XL pipelines
.
This reality would add about 2.5 million barrels of oil per day in
. At today's prices, this would generate $55 billion in revenue, or more than one per cent of Canada's gross domestic product (GDP) annually.
From operations alone, all three pipelines would increase GDP by $21 billion annually and add more than 62,000 jobs and billions of dollars in annual revenue to federal and provincial governments.
We could create tens of thousands of blue-collar jobs across Canada, increase tax revenue in every province, reduce debt by tens of billions of dollars, increase funding for social programs and meet our defense spending obligations under the North Atlantic Treaty Organization.
Instead, thanks
which have created stagnation, decline and inflation, we are missing tens of billions of dollars in government revenue, and countless Canadians have lost
opportunity for greater prosperity
.
Canada can't afford to leave
worth more than $9 trillion, is in the ground.
The Trans Mountain Expansion (TMX) project demonstrates the enormous economic potential of new pipelines. TMX added 0.25 percent to Canada's GDP in its first quarter, according to the Bank of Canada.
In addition, global demand for our oil is growing. Countries around the world such as Korea, Japan, India, Taiwan and China in Asia, as well as various European countries, have demanded and continue to request Canadian energy.
By building pipelines to new markets and implementing projects using carbon capture and storage, such as the Pathways project,
will be the world's lowest emitting barrel of heavy oil.
Canadian oil and gas could displace higher-emitting energy sources used overseas and disrupt and replace energy currently supplied by undemocratic regimes. For example, Canada could end Europe's dependence on Russian oil and gas, which continues to fund the invasion of Ukraine. We can also push heavy oil out of Iran and Venezuela, thereby reducing emissions and promoting global stability.
These simple facts highlight that Alberta's and Canada's role in advancing global energy security is not just important; this is important.
Our province has the means to provide the world with reliable, affordable and responsibly produced energy. That's why we're committed to doubling oil and gas production to eight million barrels a day by 2035 while cutting emissions.
We've already done this. Alberta's oil sands have reduced emissions per barrel by 25 per cent since 2013, and we have kept total emissions flat while increasing production.
Not to mention, a large percentage of Alberta's oil and gas is also used to produce products other than combustion, such as carbon fiber used in the automotive, construction and defense industries, and asphalt used for road paving.
If Alberta's new bitumen pipeline to Canada's west coast is approved, First Nations communities in Alberta and British Columbia will benefit from millions or even billions of dollars in resource wealth.
We want Indigenous partners at the table as owners who can participate not only as owners of the territory, but as co-owners of a project and an asset that will provide Indigenous wealth for generations.
Alberta was the province that pioneered the government's lending model for First Nations communities for resource development and other projects, and to date we have provided more than $750 million to dozens of projects across the province that will generate more than $1.3 billion in revenue for these First Nations communities. This model has been adapted by British Columbia, the federal government and others.
The last six months have made it clear that Canadians across the country support the growth of our energy sector. Recent polls show overwhelming majorities of Canadians in every province support a new oil pipeline from Alberta to Canada's west coast.
If we are to reduce our dependence on the US, additional pipelines to the East, West and North coasts must become a given.
If the federal government wants to continue to increase funding for the social programs Canadians rely on, it needs revenue from the supplementary channel.
If we are to meet our NATO defense spending commitments, we need another pipeline.
Ahead
Prime Minister Mark Carney spoke about the need for Canadians to sacrifice. But this sacrifice would not have been necessary if his predecessor government, led by Justin Trudeau, had not implemented policies to lock up Alberta's natural resources.
Using estimates from the Canadian Energy Regulator, economist Trevor Tombe estimates that the economic cost of not building pipelines is about $240 billion for Canada.
The Prime Minister should not focus on sacrifice because he has a unique opportunity to unlock billions of dollars of wealth and prosperity for Canadians at a level rarely seen in history.
All he has to do is say yes to a new bitumen pipeline from Alberta to Canada's west coast.
Daniel Smith – Prime Minister of Alberta
