(22 November 2018)
Making the Case for Pipelines
Pipelines are the safest, most efficient, and most sustainable way to get our oil to world markets. The problem for Saskatchewan and for all of Canada right now is that pipelines are being blocked, not built. The federal government has killed two projects, stalled a third, and we can’t get our oil to tidewater as a result. Inaction is costing Canadians every day.
We need pipelines and we need them now. Without them, Saskatchewan must sell nearly all of our oil to one market – the United States.
Every year, our economy loses billions because we can’t get our oil to market where it can sell for the world price, so we have to sell it at a discount. This doesn’t just cost energy producers – it means taxpayers in our province and others also lose hundreds of millions in additional taxes and royalties that could be going toward building more roads, schools and hospitals.
Right now, the oil price differential is costing us more and more each and every day. If it were to continue for an entire year, we would see a $7.4 billion impact on the energy sector and a $500 million impact on royalties in Saskatchewan. This is lost revenue that could be spent on important programs and services.
A quote from a Globe and Mail editorial earlier this month spelled out the solution succinctly, “To address the lack of pipelines, build more pipelines.”
Unfortunately, the federal government is making a bad situation worse not only by threatening us with a carbon tax, but also by moving to effectively end the future of pipeline projects in Canada through Bill C-69.
Experts have said that this bill will put the “nail in the coffin” of resource investment in Canada. This creates significant uncertainty for 34,000 direct and indirect jobs that are affected in this province.
The recent headlines are concerning:
Canada’s oil industry declares national emergency as prices drop
– Digital Journal, Nov. 16, 2018
Canadian energy sector losing patience with the country’s lack of support
– World Oil, Nov. 16, 2018
Canada’s crude crisis is accelerating
– WND.com, Nov. 16, 2018
Only new pipelines can close Canada’s yawning oil-price gap
– Globe and Mail, Nov. 15, 2018
We are doing everything we can as a government. We have been very outspoken and we are keeping the pressure up for pipelines, and for less regulatory overkill from the federal government.
Meanwhile, the NDP continues to oppose the construction of pipelines across Canada. In fact, the NDP Leader here in Saskatchewan has publicly questioned whether pipelines are good for the economy and whether they create jobs.
The NDP needs to stop opposing the construction of pipelines in Canada. Billions of dollars to Saskatchewan’s economy and thousands of jobs across our nation depend on it.
Your Saskatchewan Party government will continue to stand up for the jobs our oil and gas industry creates by continuing to press the federal government to take immediate action to get the Trans Mountain pipeline expansion built, and to withdraw Bill C-69. We will keep calling for the creation of a positive regulatory environment so we can get Canada’s pipelines built and get Saskatchewan’s resources to market.
If you have a question about this Legislative Report or any other matter, just Contact Ken.
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