Former Ambassador to the United States Frank McKenna explains the massive economic loss caused by our inability to get more Canadian oil to market.
We can now put a clear cost on the anti-pipeline ‘activism’ of those who oppose Canada’s energy industry.
As noted in a Calgary Herald article by Chris Varcoe, former Canadian Ambassador to the U.S. Frank McKenna says Canada’s inability to get more oil to market has cost our nation an incredible $117 BILLION over the last seven years.
The key issue is the price differential between what Canada gets for oil we sell to the United States (where about 99% of it goes), and what the US benchmark price is.
“The discount he refers to is the differential between benchmark U.S. prices and Western Canadian Select heavy crude. The gap expanded to almost US$40 a barrel back in December 2013 but shrank to $11 last fall. With oilsands production continuing to grow and pipelines constrained in recent weeks, the discount sat at $28.15 a barrel on Friday.”
McKenna, who now serves as deputy chairman of the TD Bank, said work done by the financial institution indicates the price differential has cost Canada about $117 billion in the past seven years. “That is a colossal amount of money for Canadians to lose, simply because they don’t have access to competitive markets,” he said. “That’s money coming right out of Canadians’ pockets.”
This is a massive amount of potential Canadian prosperity that has been lost.
Think of all that $117 billion could have done to help the Canadian people.
It could have been used to lower the burden of taxes, it could have been used to strengthen our military and support Veterans, it could have been used to improve infrastructure and strengthen the healthcare system, it could have been used to support our seniors and reduce poverty.
Instead – because of anti-Canadian energy activists opposing pipelines – all that prosperity is lost, and we are all poorer as a result.
Meanwhile, politicians like Justin Trudeau fail to confront the massive scale of the campaign against Canada’s energy industry – which is often funded by foreign money – and in fact quietly support efforts to destroy the energy industry.
We need leaders who put our national economic interests first, end the influence of foreign money, and do what it takes to get our oil to market. Otherwise, we will continue to squander billions every year.
Photo – YouTube