Ottawa introduced emissions review of domestic oil, not foreign imports: SecondStreet.org

Canada has spent $488 billion ($604 billion in 2020 dollars) on foreign oil imports between 1988 and 2020. Among the benefactors are Saudi Arabia ($44.4 billion), Russia ($9.2 billion), and Nigeria ($21.5 billion), among others.

  • Rebel News
  • May 24, 2023
  • News
Ottawa introduced emissions review of domestic oil, not foreign imports: SecondStreet.org
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Over the past 35 years, Canada has imported over half a trillion dollars worth of foreign oil, despite hosting the third-largest reserves in the world.

According to the Canadian Energy Centre (CEC), Canada imported nearly nine billion barrels of crude oil from other countries, an average of over 745,000 barrels per day between 1988 and 2020.

They spent $488 billion ($604 billion in 2020 dollars) on foreign oil imports during that period. Among the benefactors are Saudi Arabia ($44.4 billion), Russia ($9.2 billion), and Nigeria ($21.5 billion), among others.

"From additional regulatory reviews and tanker bans to rejection of pipelines, Ottawa has made it very difficult for Canadian oil and gas projects to be developed and export resources beyond North America," SecondStreet.org President Colin Craig told Rebel News.

"The federal government continues to roll out the red carpet for foreign oil while putting up roadblocks in front of domestic supply," he said.

Central and Eastern Canada typically rely more heavily on foreign oil imports than Western Canada, citing insufficient pipeline infrastructure for Western supply to meet Eastern demand. 

In 2013, TC Energy proposed a $16 billion "Energy East" pipeline that transported oil from Alberta and Saskatchewan to New Brunswick, bolstering reliance on Canadian oil to meet domestic demand and exports abroad. 

"Needless to say, the project would have created billions in tax revenues and countless jobs across the country," said Craig.

In 2017, the National Energy Board announced an "upstream and downstream" emissions review for Energy East. TC abandoned the project two months later because the regulatory process became too exhaustive and expensive.

"Canada has the third largest oil reserves in the world, and yet we're spending billions each year on importing oil. Then, when someone tries to build a pipeline to eastern Canada to reduce reliance on foreign oil, the federal government puts up a roadblock. It's crazy," said Craig.

A 2014 report by the Canadian Energy Research Institute noted the Energy East project would have contributed $7.6 billion in tax revenues, including $3.5 billion in federal revenues — money that could have been used to help pay for government services or pay down debt.

"Insufficient pipeline capacity continues to be a problem despite the 2015 reversal/expansion of Enbridge's Line 9B pipeline, enabling Ontario and Québec refineries to source more oil from Western Canada. Historically, New Brunswick's Irving Oil Refinery also relies on foreign oil imports," said CEC.

Between 1988 and 2008, crude oil imports into Canada increased from 148 million barrels to nearly 329 million barrels annually. In 2020, Canada imported over 206 million barrels — 39% above the 1988 level.

Of all Canadian provinces, Québec has been the largest importer of foreign oil — at a value of $228 billion between 1988 and 2020. According to 2016 census data, foreign oil imports per household were $1,021 nationwide and $1,576 in Québec.

Craig, formerly of the Canadian Taxpayers Federation (CTF), filed Access to Information requests in 2017 with several federal departments to ask what kind of "upstream and downstream" emissions reviews they conducted for foreign oil imported to Canada.

"Every department told me there were no such reviews," he said, including Natural Resources Canada and Environment and Climate Change Canada. "Ottawa is holding Canadian oil to a higher standard than foreign oil imported to Canada."

"In 2021, the total cost of imported crude oil in Canada was $14.7 billion, an increase of 30% over the previous year. Of that $14.7 billion, we brought in 15% from Saudi Arabia for over $2 billion and 13% from Nigeria for $1.9 billion," said Conservative MP Mike Lake at the Standing Committee on Environment and Sustainable Development last month.

"Is oil coming from Saudi Arabia and Nigeria subject to the same rigorous regulations around upstream and downstream emissions as oil from Alberta, Saskatchewan, and Newfoundland and Labrador?" he asked Environment Minister Steven Guilbeault.

"I don't know by heart the regulations or legislation in Saudi Arabia. I imagine that Canada's are more stringent, but I don't have any material to compare them," replied Guilbeault.

"We treat our oil more toughly than foreign oil coming over here. I think the answer [to my question] is 'yes,'" said Lake. Guilbeault responded: "It's very difficult to impose our bodies of laws and regulations on other nations."

"The rest of the world is laughing at us," Craig said. 

"The federal government requires Canadian oil and gas projects to jump through more regulatory hoops than what Ottawa requires of foreign oil imported to our country," he said. 

"If you're Vladimir Putin, you love that Ottawa has made it difficult for oil and gas companies to export Canadian resources. If we could export our resources, we would be a direct competitor of Putin's, and he'd lose sales — sales funding his invasion of Ukraine."

After Russia invaded Ukraine in February 2022, many observers noted that the Kremlin's natural gas and oil exports funded the tanks and rockets, inflicting death, pain and suffering on the Ukrainian people.

A study by SecondStreet.org found that Canada's energy sector could offset Russian energy sales if the necessary infrastructure were developed and built to transport these resources to global markets.

Over the next seven to 10 years, Canada could offset upwards of 59% of Russia's annual natural gas exports and 46% of its crude oil exports, amounting to 7.72 billion cubic feet per day (BCF/D) and 1.85 million barrels per day (BPD), respectively.

In the immediate future, Canada could offset 4% of Russian natural gas exports and 6% of crude oil exports.

"Canada could take a big bite out of Russia's military funding by stealing many of Putin's oil and natural gas customers," said Craig. "It can't happen overnight, but we must remember, the world is facing a long-term problem with Russia."

According to the Paris-based International Energy Agency (IEA), oil and gas revenues comprised approximately 45% of Russia's federal budget in 2021.

Craig contends that Russia has created a long-term problem, urging the world to ease off Russian energy. A new Leger poll conducted for SecondStreet.org confirmed that Canadians want to help.

The poll of 1,535 Canadians found 72% of respondents either "somewhat" or "strongly" supported "developing and exporting more oil and natural gas resources so that the world can reduce how much it purchases from Russia."

Support is widespread across Canada, including men and women and all age groups, though support remains weakest in the federal government.

Craig expressed his frustration with Ottawa taking their "marching orders" from the 13% of Canadians who are either "strongly" or "somewhat" opposed to exporting more oil and natural gas.

Despite considerable pushback from business leaders, Prime Minister Trudeau recently claimed there has "never been a strong business case" for exporting natural gas from Canada's east coast to Europe.

However, the poll shows Canadians are more than three times more likely to agree with the industry.

"Getting new energy projects underway can take time — it would take years, even if governments fast-tracked approvals," adds Craig.

Canada's controversial Bill C-69, the Impact Assessment Act, has given Canadian and international investors a hard time getting shovels in the ground on their projects, even after securing regulatory approval.

Between 2015 and 2020, Canada lost $150 billion in energy investment opportunities since Trudeau first became prime minister, which would have generated taxes, jobs and businesses for the domestic economy.

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