NEWS RELEASE

The Honourable Douglas Black, QC, Senator

Immediate release
SENATOR BLACK ON CONNECTING CANADIAN ENERGY TO THE WORLD
OTTAWA, April 18, 2013 Today, Alberta elected senator Doug Black delivered his first statement to the Senate Chamber on the pressing need for informed thinking on Canadas energy challenges. Specifically, he called attention to one of the most critical issues currently facing the future of Canadas energy sector: the lack of sufficient access for Canadian oil and gas to world markets. Senator Black noted that, although, some Canadians assume that solving Canadas market access problem will only benefit energy-producing provinces, this is simply not the case. In his address, Senator Black discussed: The undeniable importance of the energy sector in Canada - $112 billion in energy exports in 2011; Job creation, research and development opportunities, and revenue to governments across Canada that result from energy development; The projected $50 billion that Canada will lose over the next three years due to constrained market access; and The prospect of less government funds for schools, hospitals, roads, bridges, and the arts across the country. Senator Black emphasized in his statement that this challenge, demands our full attention to resolve as quickly as possible. He called for an ongoing dialogue in Canada that is needed to, ensure governments and energy producers have the social license needed to undertake critical infrastructure projects. Senator Black has been a long-time proponent for responsible energy development and an advocate for diversifying Canadas energy markets. He was founding president of the Energy Policy Institute of Canada, a not-for-profit, non-partisan organization dedicated to the development of a Canadian energy framework. Senator Black currently serves as the organizations volunteer chair. Senator Blacks bio and the full text of his statement follow. (Note: check against delivery 1st half delivered April 17th and 2nd half delivered April 18th).
-30For more information, please contact: Matthew Berry, Advisor Senator Blacks Office (613) 716-4147 berrym@sen.parl.gc.ca

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NEWS RELEASE
The Honourable Douglas Black, QC, Senator

Senator Doug Black is confident in the promise of Alberta and Canada. He placed strongly in first position in the 2012 Alberta Senate Nominee Election, and was appointed to the Senate on January 25, 2013. Senator Black serves on the National Finance and Banking, Trade and Commerce committees, as well as on the Steering Committee for the latter. Senator Black is Senior Counsel at Dentons Canada LLP, a global law firm. He studied at the University of Alberta, and holds a Bachelor of Laws degree from Dalhousie University in Halifax. Senator Black was appointed Queens Counsel in 2002 and was named as one of Canadas 25 most influential lawyers for 2012 by Canadian Lawyer Magazine. Senator Black is deeply involved in his community, and was awarded the Alberta Centennial Medal in 2005 in recognition of his many contributions. He has served as Chair of the Board of Governors of the University of Calgary, Chair of the Michalle Jean Foundation, and was Founder of Lake Crest School in St. Johns, Newfoundland and Labrador. He is Governor Emeritus of the Banff Centre, where he was National CoChair of the Centres successful $130 million campus revitalization campaign. Senator Black has been a long-time proponent for responsible energy development and an advocate for diversifying Canadas energy markets. He was founding president of the Energy Policy Institute of Canada, a not-for-profit, non-partisan organization dedicated to the development of a Canadian energy framework. Senator Black lives in Alberta with his wife Linda, and they have two adult children. Together, Senator Black and his wife are active swimmers, cyclists, and supporters of the arts.

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NEWS RELEASE
The Honourable Douglas Black, QC, Senator
The Hon. Senator Douglas Black, QC Statement in the Senate of Canada - Connecting Canadian Energy to the World Delivered April 17th & 18th, 2013

HONOURABLE SENATORS, I AM PLEASED TO SPEAK TODAY FOR THE FIRST TIME AS YOUR COLLEAGUE IN THIS CHAMBER. MAY I START BY SIMPLY THANKING ALL SENATORS, AND THE SENATE STAFF, FOR THE WARM AND GENUINELY HELPFUL WELCOME THAT HAS BEEN EXTENDED TO ME, MY FAMILY, AND MY STAFF. MAY I ALSO ACKNOWLEDGE AND WELCOME MY FRIEND, AND NOW COLLEAGUE SENATOR SCOTT TANNAS TO THE CHAMBER. I KNOW THAT HIS EXPERIENCE AND KNOWLEDGE OF ALBERTA WILL SERVE US ALL. ENERGY ISSUES ARE CRITICALLY IMPORTANT TO ME, AS THEY ARE TO ALBERTA AND TO CANADA. ENERGY DEVELOPMENT, AND PARTICULARLY ENERGY EXPORTS, DRIVES OUR ECONOMY. THE SCALE OF THIS SECTOR IS IMPRESSIVE. CANADIAN ENERGY EXPORTS WERE VALUED AT $112 BILLION DOLLARS IN 2011. ENERGY DEVELOPMENT CREATES JOBS, ENCOURAGES R&D, AND PROVIDES SIGNIFICANT REVENUE TO GOVERNMENTS. IN THE SENATE, WE HAVE THE OPPORTUNITY TO BRING ATTENTION TO THE CRITICAL ISSUES THAT FACE CANADA. ONE OF THESE CRITICAL ISSUES, PERHAPS THE MOST CRITICAL ISSUE, IS THE LACK OF INFRASTRUCTURE TO PROVIDE SUFFICIENT ACCESS FOR OUR OIL AND GAS TO WORLD MARKETS. BY ALLOWING OUR INVESTMENTS IN ENERGY TRANSPORTATION INFRASTRUCTURE, PARTICULARLY PIPELINES, TO FALL BEHIND INVESTMENTS IN PRODUCTION, CANADA FINDS ITSELF IN THE POSITION OF SELLING OUR OIL AND GAS FAR BELOW INTERNATIONAL MARKET PRICES. THIS UNFORTUNATE SITUATION COMES AT AN ENORMOUS COST, AND DEMANDS OUR FULL ATTENTION TO RESOLVE AS QUICKLY AS POSSIBLE. THE FACTS ARE DAUNTING. IN RECENT YEARS, CANADA HAS EXPORTED 99% OF OUR ENERGY TO THE UNITED STATES. NOW, TECHNOLOGICAL DEVELOPMENTS RESULTING IN TREMENDOUS SHALE GAS AND TIGHT OIL PRODUCTION IN THE U.S. HAVE CHANGED THE ENERGY GAME IN NORTH AMERICA.

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The Honourable Douglas Black, QC, Senator
OUR AMERICAN NEIGHBOURS ARE EXPECTED TO BECOME THE WORLDS LARGEST OIL PRODUCER IN 2017, AND COULD BE NET OIL EXPORTERS AS EARLY AS 2025. THIS IS MOST CONCERNING WHEN WE CONSIDER THE CHALLENGES FACING THE APPROVAL OF THE KEYSTONE XL PIPELINE INTO THE UNITED STATES, TOGETHER WITH THE ONGOING CHALLENGES OF REACHING INTERNATIONAL MARKETS THROUGH OTHER CANADIAN ROUTES. TODAY THERE IS A GENUINE THREAT THAT CANADA WILL NOT BE ABLE TO SELL ITS PRODUCTS TO THE MARKETS THAT DEMAND THEM, AND THAT OUR TRADITIONAL MARKET, THE UNITED STATES, WILL NO LONGER NEED THEM. THAT WOULD REPRESENT A DRAMATIC LOST OPPORTUNITY WITH SIGNIFICANT LOST WEALTH. THE CANADIAN ENERGY RESEARCH INSTITUTE ESTIMATES THAT OUR LACK OF INFRASTRUCTURE TO EXPORT ENERGY, COSTS CANADA $75 MILLION PER DAY. CIBC FORECASTS THAT THE LOST OPPORTUNITY IN TERMS OF PRODUCER REVENUES AND GOVERNMENT ROYALTIES WILL BE MORE THAN $50 BILLION DOLLARS OVER THE NEXT 3 YEARS ALONE. UNFORTUNATELY, SOME CANADIANS ASSUME THAT SOLVING CANADAS MARKET ACCESS PROBLEM WILL ONLY BENEFIT ENERGY-PRODUCING PROVINCES. THIS IS SIMPLY NOT THE CASE! THE FEDERAL BUDGET OF MARCH 21, 2013 ESTIMATED THAT THE FEDERAL GOVERNMENT WILL LOSE APPROXIMATELY $4 BILLION DOLLARS IN TAX REVENUE THIS YEAR, DUE TO DISCOUNTED OIL AND GAS PRICES. THE GOVERNMENT OF ALBERTA HAS ESTIMATED THAT IT WILL LOSE AN ADDITIONAL $6.2 BILLION DOLLARS TO ITS TREASURY THIS YEAR, AND SASKATCHEWAN HAS ESTIMATED THAT IT WILL LOSE ALMOST $280 MILLION THIS YEAR. ALL BECAUSE OF THE CONSTRAINED MARKET ACCESS THAT IS DEPRESSING THE PRICE WE CAN OBTAIN FOR OUR RESOURCES. CONSIDER THE LOST OPPORTUNITY THAT THIS SITUATION REPRESENTS: LESS MONEY ACROSS CANADA FOR SCHOOLS, HOSPITALS, ROADS, BRIDGES, AND THE ARTS. THERE IS A DIRECT CONNECTION BETWEEN BEING ABLE TO SELL OUR ENERGY AT THE HIGHEST PRICE POSSIBLE, AND MAINTAINING THE WORLD-LEADING STANDARD OF LIVING THAT CANADIANS HAVE COME TO EXPECT. SO, WHAT IS THE SOLUTION? THE SENATE COMMITTEE ON ENERGY, THE ENVIRONMENT AND NATURAL RESOURCES; THE ENERGY POLICY INSTITUTE OF CANADA; INDUSTRY GROUPS; AND PRODUCERS ARE NOW UNANIMOUSLY ALIGNED IN ENDEAVOURING, ON AN URGENT BASIS, TO FIND WAYS TO EXPORT OUR ENERGY PRODUCTS, AND TO HELP EDUCATE CANADIANS ON THE IMPORTANCE OF MARKET ACCESS.

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The Honourable Douglas Black, QC, Senator
FOR SUCCESS, WE NEED CANADIANS TO ACCEPT THAT THEIR FUTURE PROSPERITY DEPENDS ON US SOLVING THIS PROBLEM. WE MUST ENSURE GOVERNMENTS AND ENERGY PRODUCERS HAVE THE SOCIAL LICENSE NEEDED TO UNDERTAKE THESE CRITICAL INFRASTRUCTURE PROJECTS. I RESPECTFULLY CALL ON MY COLLEAGUES IN THE SENATE TO JOIN THIS DISUCSSION TO HELP CONTINUE THIS CONVERSATION WITH CANADIANS. A CONVERSATION THAT IS NEEDED TO HELP ALL CANADIANS BETTER UNDERSTAND HOW IMPORTANT CANADAS ABILITY TO EXPORT ENERGY IS FOR OUR AND OUR CHILDRENS PROSPERITY.

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