An alternate reality exists in which Canada, rather than engaging in economic self-destruction, had built the Northern Gateway, Energy East, and Keystone XL pipelines.
That reality would have added about 2.5 million barrels of oil per day to the pipeline’s export capacity. At current prices, that would generate $55 billion in revenue or more than one per cent of Canada’s gross domestic product (GDP) annually.
The three pipelines would have increased GDP by $21 billion annually through pipeline operational activity alone and would have added more than 62,000 jobs and billions of dollars in annual revenue to the federal and provincial governments.
We could have created tens of thousands of jobs for workers across Canada, increased tax revenue for every province, reduced debt by tens of billions of dollars, increased funding for social programs and met our North Atlantic Treaty Organization defense spending commitments.
Instead, thanks to federal economic policies that have created stagnation, decline and inflation, we are missing tens of billions of dollars in government revenue and countless Canadians have lost the opportunity for greater prosperity.
Canada cannot afford to leave Alberta’s resource wealth, valued at more than $9 trillion, underground.
The Trans Mountain Expansion (TMX) demonstrates the tremendous economic potential of new pipelines. According to the Bank of Canada, TMX increased Canada’s GDP by 0.25 per cent in the first quarter of its operation.
Furthermore, global demand for our oil is increasing. Countries around the world, including Korea, Japan, India, Taiwan and China in Asia and several European nations, have requested and continue to request Canadian energy.
By building pipelines to new markets and through projects that use carbon capture, utilization and storage, such as the Pathways project, Canadian energy will be the lowest-emitting barrel of heavy oil in the world.
Canadian oil and gas can displace higher-emitting energy sources used abroad, as well as disrupt and replace energy currently supplied by non-democratic regimes. For example, Canada could end Europe’s dependence on Russian oil and gas, which continues to finance its invasion of Ukraine. We can also displace heavy oil from Iran and Venezuela, thereby reducing emissions and contributing to global stability.
These simple facts underscore that Alberta and Canada’s role in advancing global energy security is not only important; It is essential.
Our province has the means to supply the world with reliable, affordable and responsibly produced energy. That’s why we are committing to doubling our oil and gas production to eight million barrels per day by 2035 while reducing our emissions.
We’ve already been doing this. Alberta’s oil sands have reduced emissions per barrel by 25 per cent since 2013 and we have kept our overall emissions stable while increasing production.
Not to mention, a high percentage of Alberta’s oil and gas is also used for non-combustion products, such as carbon fiber used in the automotive, construction and defense industries, and asphalt used in paving.
If a new pipeline from Alberta to Canada’s west coast is approved, Indigenous communities in Alberta and British Columbia will benefit from millions or even billions of dollars in resource wealth.
We want to have Indigenous partners at the table as landowners to participate not only as holders of territory, but also as co-owners of a project and an asset that will provide wealth to First Nations for generations.
Alberta pioneered the government-supported lending model for Indigenous communities to develop resources and other projects, and so far we have provided more than $750 million to dozens of projects across the province that will provide more than $1.3 billion in revenue for those Indigenous communities. This model has been adapted by BC, the federal government, and others.
The past six months have made it clear that Canadians across the country support the growth of our energy sector. A large majority of Canadians in all provinces support building a new oil pipeline from Alberta to Canada’s west coast, according to a recent poll.
If we want to reduce our dependence on the United States, we should consider installing additional pipelines to the east, west and north coasts.
If the federal government wants to continue increasing funding for the social programs that Canadians depend on, it needs the revenue from an additional pipeline.
If we want to meet our NATO commitments on defense spending, we need another pipeline.
Ahead of next week’s federal budget, Prime Minister Mark Carney has spoken of the need for Canadians to make sacrifices. But that sacrifice would not be necessary if his predecessor government, led by Justin Trudeau, had not implemented policies to protect Alberta’s natural resources.
Using estimates from the Canada Energy Regulator, economist Trevor Tombe has calculated that the economic cost of not building pipelines is around $240 billion for Canada.
The Prime Minister should not focus on sacrifice because before him lies a once-in-a-generation opportunity to unlock billions of dollars in wealth and prosperity for Canadians at a level rarely seen in history.
All you have to do is say yes to a new pipeline from Alberta to Canada’s west coast.
Danielle Smith is the premier of Alberta
Read more from our Red Ink series:
- How rising public debt could play a leading role in the next great financial crisis
- Canada is part of a small club of countries with an AAA credit rating. How long can it last?
