Notes for Remarks
by
The Honourable Joe Oliver
Canada’s Minister of Natural Resources
to the
Country Pitch Petrotech
January 13, 2014
Greater Noida, India
Check against delivery
Thank you, High Commissioner Beck. And good morning everyone. I am pleased to open this session dedicated to Canada.
At this morning’s ministerial session, we discussed the challenge faced by developed and developing nations, namely, securing the energy needed to fuel growth while respecting the highest possible environmental standards. In the end, this is what our citizens expect because it is the right thing to do.
Canada is well positioned to address these challenges. Indeed, Canada’s “value proposition” is among the most compelling in the world. It begins with an abundance of energy, one that can strengthen the strong ties between our two nations as energy exporting and importing economies.
Canada has the third-largest proven oil reserves in the world at 173 billion barrels — larger than those of well-known oil producers such as Iran, Iraq, Kuwait and the United Arab Emirates.
We are also the second-largest producer of uranium, the third-largest producer of hydroelectricity and the fifth-largest producer of natural gas. Canada’s natural gas — estimated at 37 trillion cubic metres of recoverable reserves — represents over 200 years of production at current rates. And while Canada has not yet entered the global LNG market, that is about to change.
Three projects with a proposed export capacity of almost 36 million tonnes per year of LNG have been granted long-term export licences. In addition, our federal energy regulator has recently approved another four long-term export licences, which are being considered for final approval by the Government of Canada.
In total, there are now 11 export licences at various stages of approval, bringing our LNG export capacity up to 165 million tonnes annually. One of these licences is for an LNG terminal for our east coast. With the potential for exporting 10 million tonnes per year, this represents another huge opportunity to bring Canadian resources to India.
Canada’s LNG potential has been recognized by investors from around the world, including those located here in India and across Asia. And those relationships will grow strong and will grow in number as Canada moves forward with its LNG development.
What’s more, shipping LNG from either of Canada’s coasts to India would take less time than shipping from emerging suppliers on the U.S. Gulf Coast. In fact, the shipping distance from Canada's east coast to an LNG import terminal on India's west coast is approximately 7,600 nautical miles, almost 2,000 nautical miles closer than U.S. terminals.
All of this opens up a tremendous opportunity for Canada to become the premier North American platform for LNG exports to Asia. And I assure you, there is growing interest in exporting LNG from Canada’s east coast to India and Europe.
So the Canadian energy story begins with its vast resources. But it does not end there. Because it is not just about the energy we have — it is about the investment opportunities we offer.
Canada is embarking on an unprecedented expansion of its energy resources. About $650 billion in new investment is planned or underway over the coming decade in hundreds of major resource projects. Few countries in the world are bringing on projects of this scale, at this pace.
Opportunities for Canada in global markets mean new opportunities in Canada for global investors. We welcome investment from India and other Asian economies, because we recognize that it is this continent that is generating more and more of the global capital needed to make these projects a reality.
To facilitate the development of the energy infrastructure we will need, our government modernized Canada’s regulatory system through our plan for Responsible Resource Development — slashing red tape and streamlining processes to provide greater predictability for investors.
As a result, we can now offer investors clear beginning-to-end time limits on review periods.
We are also strengthening environmental standards with the goal of nothing less than world-class environmental protection: enforced by transparent regulation; grounded in the best science; and supported by cutting-edge technology.
Getting the right regulatory regime in place is important, and when you add to that Canada’s economic strength, you have a truly compelling opportunity for investors.
Canada has some of the strongest economic fundamentals anywhere in the world. We have lowered taxes and reduced red tape, and we continue to promote free trade.
Our national credit rating continues to be a solid Triple-A, due in no small part to a financial system that is among the best anywhere. Indeed, our banks were ranked the soundest in the world for the fifth straight year by the World Economic Forum. Not a single Canadian bank had to be bailed out during the credit crisis. Canada has by far the best fiscal position among the G7 nations. And we are on track to balance our budget by 2015.
Quite simply, Canada is an economically sound, politically stable, free-enterprise country that is welcoming to investors. We offer sophisticated financial and legal institutions, including a banking system second to none and a modern and effective regulatory system, as well as extensive science and technology networks and expertise in geoscience.
In addition to the wealth of our resources, the extent of our investments and the strength of our economy, Canada offers something else — an unswerving commitment to the environment.
When investors and public commentators consider Canada’s energy sector and environmental performance, the subject that comes up most is the oil sands. So let me address those concerns directly.
We have 168 billion barrels of proven oil sands reserves. With new technology, recoverable reserves could almost double to over 300 billion barrels, making them the largest in the world.
And while the oil sands represent a tremendous source of opportunity for Canada — and a vast supply for the world — they account for just 0.1 percent, or 1/1000th, of global greenhouse gas emissions, a minuscule fraction.
Nevertheless, we accept our obligation as citizens of the world to protect the environment. So we continue to work hard to make greenhouse gas emissions even smaller. We have implemented a world-class air, land and water monitoring regime for the oil sands and continue to pursue greenhouse gas regulations in the oil and gas sector. We have also invested over $10 billion to support green infrastructure, energy efficiency, clean energy technologies and the production of cleaner energy and cleaner fuels. New technologies have lowered greenhouse gas emissions per barrel by 26 percent between 1990 and 2011.
And there is something else going on in the oil sands as well. Something remarkable. Fourteen Canadian companies with operations there have come together, not to compete, but to collaborate. They have created an innovation alliance to share their best ideas on how to reduce the environmental impact even more. So far, over 560 technologies and innovations worth $900 million have been shared — an approach unparalleled anywhere in the world.
Since 2005, Canadian greenhouse gas emissions have decreased by 4.8 percent while the economy has grown by 8.4 percent and our population has grown by over 6 percent. A growing economy, growing population and declining greenhouse gas emissions — the way of the future — is already happening in Canada.
And Canada’s gains in energy efficiency are impressive. The International Energy Agency recognizes Canada’s consistent record on improving energy efficiency across the economy. It ranks Canada second, tied with the United Kingdom, in energy efficiency improvements among 15 countries between 1990 and 2010.
So that is the Canadian energy story: abundant energy resources; a once-in-a-generation expansion of energy infrastructure; a streamlined regulatory regime; strong economic fundamentals; a welcoming environment for investment; and world-class environmental standards.
Today, energy has become a critical factor, running through many of the issues defining our present and shaping our future. We must look ahead, to 2030 and beyond, and address ourselves to the Emerging Global Energy Basket.
And as we do, I hope you will look to Canada, a country that has the resources, the reach and the resolve to help shape that future to develop the full potential of the Canada–India energy relationship. We are positioned to forge a long-term strategic energy partnership that will bring enormous benefit to both our countries. This vision requires engagement by governments and business. So let’s work together to make it a reality.
Thank you.
