Hon. Steven Guilbeault, P.C., M.P., Minister of Environment and Climate Change: Thank you, senator. As I said earlier, Quebec imports less and less of its oil from foreign nations and relies more and more on Canadian oil, but as I explained to some of your colleagues, we are heading into a world where we will gradually reduce our dependency on fossil fuels. That has already started happening in Canada. It is not happening everywhere, but it is happening in many nations around the world.

This is a problem that will solve itself over time by us investing in alternatives and in clean technologies to ensure people have access to safe, reliable sources of energy as we decarbonize our transportation, electricity, and oil and gas sectors.

Hon. Jean-Guy Dagenais: Minister, as you know, the war in Ukraine has highlighted the fact that oil will not be disappearing tomorrow and certainly not within the next 10 years.

The need is there, and Canada is missing out on economic opportunities for Alberta, Newfoundland and Quebec. You know very well that the prices that companies are paying for oil will be passed on to consumers. You seem to be forgetting that oil has uses beyond fuel for vehicles. What will you do to address inflation, given that you’re unfortunately strongly against the idea of the oil sector having any kind of autonomy?

Hon. David M. Wells (Acting Leader of the Opposition): Minister, there are 8 trillion cubic feet of proven gas reserves in the Jeanne d’Arc Basin off the coast of Newfoundland and Labrador. One trillion cubic feet of gas replaces 170 million barrels of oil.

There is a company in Newfoundland and Labrador that is proposing to produce and sell 3 trillion cubic feet of this liquefied natural gas, which is over 500 million barrels of oil to be replaced.

This partnership includes the Miawpukek First Nation on the Conne River, the project requires no drilling and it will use 100% renewable energy to liquify the gas for transport to Europe and markets around the world. In fact, for any Canadian energy product, this location is the shortest route to the key markets of Europe. Phase one of the project is estimated to cost $5.5 billion and take up to seven years.

Minister Guilbeault, are these Canadian investors wasting their time and their money?

Hon. David M. Wells (Acting Leader of the Opposition): Welcome, minister. Minister, the Bay du Nord offshore petroleum development project is vital to the economy and future of Newfoundland and Labrador. This project will produce 200,000 barrels of oil per day and has an initial lifespan of 30 years with the first production targeted in 2028. The construction phase will employ thousands of specialized workers and this will put billions of dollars into the economy of Newfoundland and Labrador and Canada.

Minister, the Impact Assessment Agency of Canada was created and touted by your government as a way forward for future environmental impact assessments and to make decisions based on science. This was the essence of Bill C-69 passed in 2019 in a previous session of Parliament. The Bay du Nord project has been assessed for almost four years. The agency has recommended the project for approval and they stated that it “. . . is not likely to cause significant adverse . . . effects . . . .”

The project proponent has committed to being a world-leading, ESG-focused producer for this project and will have some of the lowest emissions of any energy project in the world. My question is simple: Will the government commit to following science and not politics and approve the Bay du Nord project as recommended by the Impact Assessment Agency, as the deadline, which is this Sunday, approaches?

Hon. Steven Guilbeault, P.C., M.P., Minister of Environment and Climate Change: Thank you, senator. I wouldn’t say we’re against the idea of autonomy for the energy sector. In fact, we’re working on strengthening our country’s energy autonomy. As I said to one of your colleagues earlier, I’m not the one saying that oil production will peak in 2028. That’s from the International Energy Agency, which many consider to be one of the most credible organizations in this area. I could mention the report by our energy regulator, which says Canada’s oil production will peak in 2032, not 2028.

I agree with you that we are going to keep using oil for quite some time. However, what seems very clear according to the experts is that oil production will decrease year after year. We are currently decarbonizing the transportation and electricity generation sectors. We’ll have a net-zero electricity grid by 2035. We are working with companies in the aluminum sector to produce aluminum with virtually no GHG emissions. We are working with steel companies too. As a result, our need for fossil fuels will shrink over time.

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