The House of Commons Standing Committee on Natural Resources met to study Canada's energy export opportunities, hearing from five witnesses: Rory Johnston, an oil market analyst; Peter Tertzakian, an energy strategist; David Billedeau, representing the Canadian Hydrogen Association; and Serge Abergel and David Laureti from Hydro-Québec.
Rory Johnston argued that Canada's oil exports are dangerously dependent on the U.S. market due to fixed pipelines, which have caused massive price discounts, such as the $50-per-barrel blowout in 2018. He warned that U.S. refiners hold a monopsony and can push tariff costs onto Canadian producers, as seen in early 2025. He recommended prioritizing a west coast deepwater port pipeline to diversify markets, noting that private industry will favour cheaper southbound routes, so government-backed, concessionary capital may be needed to build strategic infrastructure quickly.
Peter Tertzakian emphasized that Canada forfeited $49 billion U.S. in oil discounts over 15 years due to U.S. market captivity, and that building an additional 1.5 million barrels per day of oil capacity could raise GDP by $31.4 billion annually and support 112,000 jobs. He called for regulatory reform to shorten permitting to one to two years, end the practice of permits being revoked, and harmonize federal and provincial rules, adding that indigenous partnership is a condition for success, not an obstacle. He disagreed with the notion that Trans Mountain is unprofitable, arguing that value is extracted by U.S. refiners, not Canadian producers.
David Billedeau stated that hydrogen is an emerging export opportunity, with Europe and Asia-Pacific as key markets, but Canada faces a shortage of projects reaching final investment decisions due to policy design. He recommended optimizing the clean hydrogen investment tax credit to unlock $35 billion in private capital, investing in export promotion programs, and enhancing federal-provincial coordination on infrastructure. He noted that Germany's H2Global mechanism is accelerating timelines, with a first auction for Canadian hydrogen possible by late 2026.
Serge Abergel highlighted Hydro-Québec's renewable electricity exports to New York and New England, which generate $50 billion in revenue over 25 years from two new transmission lines, built without federal support. He stressed that electricity must remain tariff-free, as tariffs would raise wholesale prices by up to 30% in those markets and threaten reliability during emergencies. He outlined a $200-billion action plan to meet growing demand through wind power, hydroelectric upgrades, and energy efficiency, and noted that the clean electricity investment tax credit in Bill C-15 will lower project costs for customers.
David Laureti added that Hydro-Québec is eligible for the clean electricity investment tax credit following Bill C-15, which will reduce project costs and benefit ratepayers. He confirmed that the utility works with companies to reduce peak demand and that the Quebec government regulates energy block allocations for projects over five megawatts.
The committee briefly discussed scheduling motions for a future meeting, with members agreeing to set aside time during the next session.
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