Swift Current– Pipeline News asked each of the four federal candidates in the riding of Cypress Hills Grasslands a series of questions on energy, with a focus on issues in that particular riding. These are the responses of Trevor Peterson, the NDP candidate. He responded by email on Sept. 18.
Pipeline News: Southwest Saskatchewan was the primary area for natural gas production in this province, but the drop in gas prices in recent years has caused drilling for natural gas to all but cease. What is your take on this development?
Trevor Peterson:We support sustainable development and export as part of a diversified and prosperous economy. The energy sector is currently going through some dramatic challenges due to commodity prices, and the Conservatives have done nothing to prepare for this downturn. It is energy workers who are now suffering from the Conservatives’ failed approach. We know that prices go up and prices go down and we need an approach that builds a healthy and diversified resource economy that can weather the storms. That’s why the NDP’s plan will invest in infrastructure in every community, and we will cut small business taxes by 2 per cent to help them create jobs. We are all in this challenge together and we will work hard to build a diversified economy that can withstand changes in commodity prices in the energy sector.
P.N.: The oil industry has taken up a lot of the slack from the decline of natural gas in southwest Saskatchewan. However, declining oil prices has caused all drilling to cease in the Shaunavon area as of early September. How is this going to impact your riding, and what will you do to help the energy industry in your riding?
Peterson:Declining oil prices are a challenge for our riding, there is no doubt about it. This makes it all the more disappointing that the Conservative government didn’t do anything to prepare us for a downturn. Saskatchewan’s future is linked to healthy and sustainable natural resource development, and we know that we need to work with other provinces in order to get our products to market. Stephen Harper won’t even meet with provincial peremiers. His approach has failed to get a single kilometre of pipeline built.
In the short-term we can make careful investments that will grow our economy, while still balancing our budget. We can grow our investments in infrastructure to create jobs, reduce small business taxes, and invest in creating opportunities for our youth until energy prices rise again. In the long-term we need a collaborative, federal approach and a firm commitment to sustainability to help get our natural resources to market.
P.N.: The proposed Keystone XL pipeline, if built, will pass through the Cypress Hills-Grasslands riding. Indeed, this riding will see almost all the Canadian component of the pipeline’s construction. Its entire Saskatchewan run is within this riding, and pipe was stockpiled south of Shaunavon several years ago. If and when the project goes ahead, it will mean hundreds of high-paying construction jobs in the riding and tremendous spinoffs for businesses in the riding. What do you think about the Keystone XL project?
Peterson:We need to look at the whole equation. Proceeding with Keystone XL could severely limit potential upgrading and refining projects here at home and that could cause tens of thousands of potential jobs to disappear. The Conservatives’ own number is that it would export 40,000 jobs south. The government should be doing more to protect value-added upgrading jobs right here in Canada. New Democrats believe that pipeline projects can be done right, in a manner that doesn’t ship thousands of jobs south of the border. Our preference is to do more value-added refining and upgrading in Canada to keep jobs at home.
P.N.: Is there anything more on that project the federal government can or should do regarding Keystone XL? Will it take a new American president for this project to go ahead?
Peterson:The American president will be the one to make this decision. Unfortunately, the Conservative approach of ignoring all other trading issues has hurt our credibility in the US. Their approach has failed. President Obama’s decision has been made all the more difficult by the Conservatives’ failure to address the environmental impacts of natural resource development. Here in Canada, we should be focused on meeting our own climate change challenges to fix our credibility problem. Our trading partners will be much more willing to accept our natural resource projects when we can ensure that we develop our own resources sustainably.
P.N.: With oil prices having been in serious decline since the summer of 2014, and now drilling activity drying up, the industry is going from bad times to worse, with thousands of job losses, businesses in serious trouble and home values in oilpatch towns taking a beating. What, if anything should the federal government do to help this industry now in crisis?
Peterson:During these tough times for the energy sector we need to ensure that the federal government makes the necessary investments in our economy while balancing the budget. That is the responsible, balanced approach of Tom Mulcair. The NDP has released a fiscal plan that will invest in infrastructure in every Canadian community and reduce small business taxes while ensuring that we don’t fall back into deficit. We will also strengthen access to EI to ensure it is there for energy workers when they need it.
P.N.: SaskPower has announced a new natural-gas fired power plant for Swift Current. Most of Saskatchewan’s wind-powered electrical production is within this riding. What do you see for our electrical generating future, especially given concerns about climate change?
Peterson:Saskatchewan has enormous clean energy potential, particularly wind power. We need a federal government that will make it a priority to grow our economy while addressing climate change at the same time. In 2014, investment in renewable energy generation reached $10.7 billion across Canada. Unfortunately, Saskatchewan didn’t get any of this new investment. I will make it a priority to create jobs and support clean energy production in our riding. Natural gas is an important part of a diversified energy mix and can help reduce short term greenhouse gas emissions as well.
