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Ma 2013 12:20PM HP LASERJET FAX :WflLp FIAIECERTHE World Trade Centre Edmonton (WTCE) is part of the World Trade Center Association (WTCA) which is a global network of over 330 organizations located throug hout 100 countries around the world, focused on the ideal that promotes prosperity throug h trade and investment. World Trade Centre Edmonton counts among its membership 21 chambers of commerce located in northern Alberta, northern British Colum bia, northern Saskatchewan, Yukon, the Northwest Territories and Nunavut. The combi ned membership of these chambers, and therefore WTCE is over 10,000 businesses who employ well over 100,000 Canadians in a wide variety of industries. The goal of WTCE is to build strong relationships with global and northern partners and stakeholders to create a business environment that facilitates efficient and responsible development in the resourc e-rich northern Canadian region. World Trade Centre Edmonton (WTCE] is a strong proponent of an efficie nt and expedient approval of the Northern Gateway Pipelines (NGP) project so that constru ction may begin without further delay. As an organization founded on the principles of world trade expansion, the promotion of international business relations and understandin g among nations, the WTCE views the Northern Gateway Project as a key piece of infrast ructure for advancing these principles in Canada and among our global trading partners. The benefits associated with the Northern Gateway Project are significant to our membe rs in the Northern Alberta and Northern Canadian regions, and in the broader global context of free trade and open markets. The benefits flowing from an approved Northern Gateway Project are certain broad, based and large. The risks associated are very unlikely, and confined to a relativ ely small group and area. The Northern Gateway Project will immediately stimulate wealth creation, contributing significantly to intergenerational prosperity across Canada and indeed the globe. It creates market options for Canadian oil and gas produc ts and the associated uplifts will generate revenues enabling economic diversification in the economy. If the project is not approved, these benefits will not materialize and the viability of Canad a s oil and gas sector will be threatened. The highly probable consequence of the project not proceeding will be a decline In jobs and investment across the country. These costs would be borne by future generations as much as the Canadians of today. Immediate and future benefits of an approved Northern Gateway Projec t are significant. These benefits will be Canada-wide. Gross Domestic Product (GDP), employment, demand for goods and services, and government revenues all dramatically increas e with project approval. Three activities flowing from project approval enable these benefit s. First, the pipeline and associated infrastructure will be built. immediate jobs and injections into the World Trade Centre Ednonton MAY2013 Page 1 of 4 P.008 8 P.
Ma 2013 12:21PM HP LASERJET FAX p.s economy will result from these activities. Second, making Canada s oil products available to global (Asian) markets will create uplifts in. the price Canada receives for these finite oil and gas assets. Third, the pipeline increases capacity to transport products, stimulating continued investment and growth in the oil sands and oil and gas sector. Overall, the project stimulates short and long term wealth generation and prosperity directly and indirectly, across Canada. Global trade creates prosperity and diversity. Canada benefits from diversity. Diversity is enabled by the Northern Gateway Project in three key areas. First, market options for our products. Canada is currently getting less than it could for its products. Opening access to global markets enables Canada to generate uplift in its prices and with increased volumes of shipped product also enabled by the project, the increased revenues are significant. Second, the increases of available capital in our economy can be used for diversification activities throughout our economy. Governments can direct these revenues to meet the needs of their constituents; the private sector can invest to capitalize on emerging opportunities. Institutional, business sector and private investment in Canada is enabled by the increased capital flows Northern Gateway Project ensures. Third, and perhaps most important, is the reduced vulnerability to the United States energy policy and current terms of trade. Though the robust and secure trade relations between Canada and the United States are the envy of many nations around the globe, they can be stifling at times. Such is the case with the oil and gas trade between Canada and the US. Canada s economy is less stable, resilient and productive as a result of the overdependence on the large US market Due to the limited options for Canada, the present-day return to our economy from the sale of our non-renewable heavy oil resources is not optimal for the citizens of Canada. Often overlooked by many, the energy resources forming the basis of this trade are finite they are the assets of future generations of Canadians as much as they are the current. An additional detractor of current reliance should carry significant weight in the Northern Gateway Project approval decision: the US is actively moving to reduce its dependence on Canada s petroleum products. Canada is currently relying on a trading partner whose appetite for these products is decreasing while in Asia and other places in the world demand, and expected future demand is on the rise. Population, economic growth and public policy ensure these expectations and trends are highly likely to continue. The Northern Gateway Project is the clear and most efficient solution to effectively and responsibly manage these critical issues. in a global market economy, capitalizing on strengths is vital to ensuring sustainable economic growth and stability. Lack of growth and stability means businesses, and in turn individuals and families suffer. For many, the declining viability of the oil and gas sector in Page 2 of 4 Wo1d Trade Centre dxaonton MAY2013 95
Ma 2013 12:21PM HP LASERJET FAX 10 p. Canada will have direct consequences over the next several decades incomes and fewer choices across the range of human experiences. lost jobs, reduced The more serious implications that aiise from Canada s lack of market options for its oil and gas commodities consist of two, compounding conditions. The first condition is the current state of affairs. Canada depends almost entirely on commodities to sustain its economy. The oil and gas sector, particularly the oil sands, are the primary engine of commodity contributions to the economy. Without oil and gas sector contributions, Canadians standards of living would decline significantly. The economy depends on the oil and gas sector, and they represent one of the largest assets to Canada. As a result of many factors, including the rising economic cost and environmental costs, carbon based fuels such as coal, oil and natural gas have a limited useful lifecycle. It can be anticipated that a transition from a carbon based energy economy to a renewable energy economy may occur sometime in the future. As a result of this future decrease in demand for carbon based fuels, it is reasonable to assume that continued global demand for Canada s petroleum assets will not be as robust in the longer term. In short, our window of opportunity for achieving the maximum economic benefits for the country from the non renewable resources is limited. We either make decisions to capture the benefits of the non-renewable resources in this country or we waste the opportunity to the determent of all Canadians, present and future generations. The second condition that affects Canada s lack of market options for its oil and gas commodities is Canada s future capacity to compete in a global economy when either demand for oil and gas commodities declines, or the majority of Canada s reserves have been depleted. Our economy, with today s levels of diversification, is not sufficiently robust to compete effectively on a global scale without our oil and gas sector. To be competitive in the global economy of the future, nations will be required to have a diversified economy new businesses that will deliver value relative to the emerging opportunities of future global market needs. Diversification strategies that will support the economic transition between today and a tomorrow without reliance on oil and gas will require investment And, in Canada the significant sources of capital that could be invested in diversification are largely dependent on the oil and gas sector. The Northern Gateway Project, with tidewater access and the increases to transport capacity, is the most effective, efficient, reasonable and economic solution for generating the sufficient levels of capital to enable the diversification necessary for transitioning sustainably and prosperously into the future, - Ensuring a strong regulatory framework for the Northern Gateway Project operations is a benefit to the public and industry. Requirements of best practice standards in NGP operations and beyond are not only prudent, they enable further opportunity. The associated technologies, regulatory mechanisms and skills associated with responsible and leading edge risk management provide means for both economic and leadership World Trade Centre Ethonton MAY2013 Page 3 of 4 P.010
Page Ma 2013 12:21PM HP LASERJET FAX p.11 opportunities throughout other jurisdictions in and outside of Canada Canada s best opportunity for mitigating environmental risk and capturing economic benefits in international and shared jurisdictions will be through this global leadership. Capacity for industry leadership is built through applied experience. An approved Northern Gateway Project provides ideal circumstances for building that capacity and in turn, recognition for leading in risk management and safe project implementation thereby improving competitive advantage. Further, maintaining Canada s standards for responsible resource development are significant contributors to the attractiveness of the Canadian business environment towards attracting increased foreign direct investment. The risks associated with the Northern Gateway Project are small and manageable yet the high stakes engender a climate that can spur innovation, advancing environmental risk management skills, capacities and technologies. The value of an approved Northern Gateway Project cannot be overstated. The certain benefits ensure Canada s continued prosperity, significantly contributing to intergenerational wealth and well-being. Market opportunities are global for Canada s bitumen commodities, and infrastructure such as the Northern Gateway Project should be built to expand Canada s natural advantages. Canad&s oil and gas sector requires projects such as the Northern Gateway Project to maintain its viability and, as the driver of the Canadian economy, ongoing investment and capacity building. Through the JRP process a social licence for project approval should prevail. In the interests of its membership and the advancement of global trade expansion and building international trade relations, the World Trade Centre Edmonton strongly supports the approval of the Northern Gateway Pipelines project World Trade Centre Edmonton - 4 of 4 MAY2013 12:06 P.011