Fourteen CEOs representing the four largest pipeline companies and ten largest oil and natural gas companies wrote to Canada’s political party leaders calling for simplified regulations and an end to all emissions caps and carbon levies.
The Wednesday letter outlines five calls for action for the oil and natural gas sector to expand and for energy infrastructure to be built.
Simplify regulation. The federal government’s Impact Assessment Act and West Coast tanker ban are impeding development and need to be overhauled and simplified. Regulatory processes need to be streamlined, and decisions need to withstand judicial challenges.
Commit to firm deadlines for project approvals. The federal government needs to reduce regulatory timelines so that major projects are approved within 6 months of application.
Grow production. The federal government’s unlegislated cap on emissions must be eliminated to allow the sector to reach its full potential.
Attract investment. The federal carbon levy on large emitters is not globally cost competitive and should be repealed to allow provincial governments to set more suitable carbon regulations.
Incent Indigenous co-investment opportunities. The federal government needs to provide Indigenous loan guarantees at scale so industry may create infrastructure ownership opportunities to increase prosperity for communities and to ensure that Indigenous communities benefit from development.
"By declaring a Canadian energy crisis and key projects in the 'national interest,' the federal government will be able to use all its available emergency powers to ensure that the dramatic regulatory restructuring required to expand the oil and natural gas sector is rapidly achieved," the letter explains.
The letter says Canada is at a "turning point" with "increasing public support to urgently grow our energy sector and build energy infrastructure, including new oil and natural gas pipelines and LNG terminals, to expand Canada’s energy exports. These are critically important global commodities."
"A growing Canadian energy sector will also help address the world’s energy poverty emergency," the letter explains. "Canada has the resources to responsibly meet this demand as one of the top five global oil producers and one of only two democratic oil producers in the top ten."
The signatories say this would be good for the environment.
"Canadian LNG could replace the more emissions-intensive coal fired electricity generating plants throughout Asia. Canada’s oil sands industry has been investing heavily in research and regulatory approvals to develop new carbon capture and storage projects that have the potential to reduce the sector’s carbon emissions intensity. Thus, an expanding Canadian oil and natural gas sector helps the world’s efforts to tackle this global challenge," the letter explains.
In a press release accompanying the letter, Adam Waterous, Executive Chairman, Strathcona Resources Ltd. said it was time for Canadians to claim their economic sovereignty.
“We are saying it’s time to roll up our sleeves as a country, and build needed energy structure,” Waterous said. “Canadians now recognize the need for us to grow our energy sector and build energy infrastructure, including new oil and natural gas pipelines, and Liquefied Natural Gas (LNG) export terminals. They want a country-wide push to champion our products and pipelines, and to unleash the potential of our natural resources. Everyone wants our country to continue to prosper and our export-focused economy to grow."
François Poirier, President and Chief Executive Officer, TC Energy said Ottawa needs to work with the energy industry instead of making things difficult.
“Today, the federal government does not have the right policies, or the regulatory framework to support oil and natural gas investment. Delays in permitting processes for critical infrastructure often results in billions in lost economic opportunities for Canadians. It’s time for change. These are barriers we have imposed on ourselves that need to be removed, now,” Poirier said.
That perception was shared by Alberta's political leadership with on Wednesday endorsed the group and its mission.
“Alberta’s energy sector has long been the economic engine of Canada and has never been more critical to Canadian sovereignty and prosperity,” Alberta Premier Danielle Smith said in a joint statement with Energy and Minerals Minister Brian Jean.
During the last decade of Liberal-NDP government, multiple "destructive energy policies" have resulted in more than $280 billion dollars in projects being delayed, cancelled or shut in by the proponents, they said.
Ottawa’s elected eco-extremists have done everything they can to keep Alberta’s oil and gas in the ground — "that has to change now,” she added.
“These are projects that would have created tens of thousands of jobs, generated hundreds of billions in government revenues, secured energy security for Eastern Canada and made our nation less dependent on the United States.”
“We wholeheartedly support the call by Canada’s energy business leaders to find a new way of getting major projects built."
To read the full letter and view the signatories, please visit: http://www.tcenergy.com/open-letter-to-party-leaders