The world needs more Canadian energy

Resource is valuable to our citizens and around the globe, says Mark Adler.

A decade ago, there was tremendous optimism in Canadian energy circles. Laying claim to the world’s third largest oil reserves and with global energy demand surging, Canada was standing at the precipice of unprecedented economic prosperity.

Tens of thousands of new well-paying jobs would be created. Businesses in the industry’s supply chain would expand and new ones would be established.

Increasing profits meant more public revenue for health care, social programs and debt reduction.

However, one obstacle stood in the way. Pipeline capacity. Once constructed, Canada would have access to new and lucrative markets abroad. Now, fast forward to 2019.

Instead of gleaming new pipelines facilitating access to energy hungry markets in Asia, the industry got higher taxes, increased regulation, interprovincial squabbling and federal legislation effectively landlocking Alberta and Saskatchewan energy.

This led to the loss of over 100,000 jobs in Alberta.

Governments also missed out on an annual bonanza of $1.2 billion in tax revenue since 2015. At the same time, deregulation, tax cuts and a friendly investment environment was taking hold in the United States.

Without the needed infrastructure to access markets abroad, Canada was left increasingly dependent on the U.S. as its lone customer. Not only forced to sell at a 40 per cent discount, but to add insult to injury, Canada’s only buyer had also become its main competitor for energy investment.

Those opposed to responsible development could not be happier. Small in number, these activists draw substantial financial backing from foreign foundations and doting attention from Hollywood celebrities.

According to the activists, if you’re not against the oilsands, you don’t care a whit about the environment.

But nothing could be further from the truth. Canada has some of the most stringent environmental standards in the world. In fact, if every oil-producing country followed them, there would be an immediate 23 per cent drop in global carbon emissions. As long as the activists control the narrative, the issue will continue to be framed as a choice between a clean environment or energy development. Fact is they are not mutually exclusive. Canadians understand that a carbon free economy cannot be achieved overnight. It takes time.

The industry gets this, too. Spending $1.5 billion on

R&D each year toward carbon reducing technologies, Canada is recognized around the world for its leadership.

Slamming the door on the responsible development of Canada’s energy reserves would have disastrous economic consequences.

The industry employs over one million Canadians. It accounts for 11 per cent of the country’s GDP. Over the last five years, the industry has contributed an annual average of $26.8 billion in taxation and will pay an additional $1.5 trillion more within the coming two decades.

What’s more, Canadians know all this. According to a 2019 Angus Reid survey, twothirds of Canadians view oil and gas as the most critical sector of the country’s economy. As long as fossil fuels make up the bulk of global energy demand, Canada not only has an obligation to its own citizens but also to the world to provide this world-class resource.

Governments need to work together to provide the right conditions for success. After all, a prosperous energy industry could serve as a hedge against a future of higher taxes, cuts to social services and increased deficit spending. Canada still has an opportunity to be more than just a bystander.

But members of the silent majority must make their voices heard. Canada needs to be counted on as a reliable energy partner. If not, other countries with far lower environmental standards will fill the orders. Surely Canada’s activists must see the irony.

It’s up to Canadians to make the next move. There is far too much at stake to allow a small group of foreign-funded activists to carry the day. The world needs more Canada, not less. Mark Adler is co-founder and CEO of Canada Energy Advantage, a Toronto-based countrywide movement launching in September in support of the responsible development of Canada’s natural and renewable resources. He is also a former member of parliament from Toronto.