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INTRODUCTION Thank you very much Ken (Hughes) and good afternoon everyone. Thank you all for coming. It’s a pleasure to be here to take part in the discussion on our shared energy future. And I’m tremendously pleased that we’ve been able to work with the Foreign Policy Association in making the conference happen. I appreciate the Association’s willingness to serve as host and bring us together, because this conversation on North American energy independence is one we need to have — for reasons that have changed very dramatically very recently. Energy independence has been a popular topic in Canada and the US for many years. But for most of that time, the need to meet domestic demand reduced it to wishful thinking. North Americans looked out at a world developing rapidly and becoming increasingly thirsty for energy. And we wondered how we could guarantee our own security of supply, without provoking instability or conflicts with rising powers. We looked out at a world in which a significant proportion of energy production occurred in countries run by governments that don’t live up to our values. And we regretted that so much of our money was going to enrich them. Energy self-sufficiency was just a talking point, something we could only aspire to — until now.


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ENERGY INDEPENDENCE Today, North American energy independence is close and getting closer — thanks to the discovery of new reserves, better technology, and a focus on innovation that supports both trends. Our way forward has never been clearer, the opportunities greater, or the odds more in our favor. We have to get this message out, so that people on both sides of the border understand how much they stand to gain from resource development — because success depends on their understanding. Governments and industry need to maintain the social license to expand production. And we must ensure that people recognize that we’re proceeding down the path to energy independence in a safe, sustainable way that benefits them. Our responsibility must match our productive capacities, vast though they are. And I have the utmost confidence that governments and industry can meet these expectations. Five years ago, this kind of optimism was missing from the discussion on North American energy independence. We heard a lot of doom and gloom, amid predictions of peak oil. Fortunately, North American oil production is proving those predictions wrong. The US is experiencing a renaissance in energy development as new sources of tight oil are tapped. And I know from my trips down here, and from many meetings with governors, how hard states are working to provide the right climate to keep investment and crude flowing.


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American production is at its highest level since 1996. And it’s projected to keep growing rapidly through 2016. By the end of the decade, the US will become the world’s largest oil producer, churning out more than 11 million barrels per day. That’s a figure to be proud of! In Alberta, we’re also seeing increased production. Alberta is home to the world’s third-largest proven oil reserves with 170 billion barrels — most of it in the oil sands. At present, we’re producing 2.5 million barrels per day; by 2022, that will rise to 4.2 million. Canada is the single largest source for US oil imports, so as overall imports diminish, you’ll be able to buy a larger portion of them from us. Your money will go to a country with the same democratic values, and a lot of it will return here, since the US receives 89 cents back for every dollar spent on Canadian goods and services. This is at a time when Europe is buying expensive Russian energy with contracts tied to oil pricing, while China is building coal plants at an unprecedented rate, because it has few economic alternatives. North America has a major advantage. And that advantage will only grow as production expands and more jobs in sectors like manufacturing and petrochemicals return in response. REASONS TO COOPERATE There’s no doubt that energy independence will bring us choice, certainty and security in a world that’s short of all three. And they make it worth pursuing. However, there are even more compelling reasons, and the most important one stems from the fact that Canada and the US share more than values. We share growth and demographic destinies.


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And while Canadians and Americans may not know it yet, they’re counting on the first to overcome the second. The search for prosperity is urgent, because we’re both facing population shifts unlike any we’ve encountered before. North Americans are getting older in greater numbers, and living longer, putting unprecedented strains on critical services and public spending. It means more beds in hospitals and continuing care centres, more money for advanced treatments that keep people with chronic diseases healthy . . . . . . along with more for pensions and benefits, and help for seniors on fixed incomes and those who’ve exhausted their savings. Governments have promises to keep. The only way to pay for them is by encouraging growth and investment. Whenever the prospect of fresh development in the oilpatch comes up, it’s met with complaints that business benefits at the expense of people. We know that’s false. We know that the outcomes of growth and investment are jobs, taxes and opportunity, and that they fund the services people use every day. Public acceptance is essential for expanded energy production; the easiest way to obtain it is to ensure people understand what’s at stake. BEING GREEN When it comes to winning approval for expanded production, how we attain energy independence is just as important as why. The science of climate change is settled and our obligation to protect the environment and minimize energy production’s footprint is undeniable.


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Industry and government must live by those truths. Our commitment to responsible development has to be visible in everything we do. Alberta, the home of the oil sands, has known this for a long time. It was the first jurisdiction in North America to require large industry to curb greenhouse gas emissions. And since 1990, the provincial energy industry has reduced greenhouse gas emissions per barrel of oil by an average of 26 percent. Some facilities have achieved reductions as high as 50 percent. Producers are even working together to accelerate reductions as part of a unique private-sector initiative. Through Canada’s Oil Sands Innovation Alliance, they’re sharing intellectual property worth hundreds of millions of dollars to improve each other’s performance. That’s not something you’ll see in many other industries! In Alberta, we’re not just limiting pollution — we’ve put a price on it. We’ve put a price on carbon and again, we were the first in North America to do that . . . . . . helping us raise over $300 million to support clean energy technology projects to reduce emissions further. And even as oil sands production rises in the next 10 years, we’ve still found room to set aside approximately 5 million acres in the region for conservation. We’re also bringing in a new monitoring system jointly run with Canada’s federal government, to uphold our commitment to being green. This is a system that boosts our ability to detect changes in the environment . . . . . . one which is subject to external review by independent scientists, and which makes all data publicly available, so anyone can assess the oil sands’ performance for themselves.


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There is really no room to compromise. Governments and industry must be honest about the impact of production, manage it and follow through on pledges to improve when we fall short. BEYOND INDEPENDENCE There’s one last thing to understand about energy independence: Cooperating purely to satisfy domestic demand isn’t enough. Our ultimate goal should be developing our hydrocarbons to their fullest potential, to turn North America into an export-oriented, global energy superpower. The world is really starting to notice the surge in US and Canadian productive capacity. They’re eyeing it because they need it. Demand for energy will keep rising for the foreseeable future as developing nations strive for higher standards of living . . . . . . which translates into heightened concern for the environment, and an emphasis on buying verifiable, responsibly produced energy. It’s a need Canada and the US can fill. In doing so, we can magnify the positive outcomes for ourselves —more revenues for essential services, more investment in technology, and more jobs and growth. Alberta’s oil sands are a central part of this picture. 40 percent of the world’s total refining capacity for heavy oil is located on the US Gulf Coast. And we’re determined to reach it through the Keystone XL pipeline. We’re looking at other options too, possibilities that would see our oil move north, east and west across Canada by rail and new pipelines.


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Continued oil sands development is expected to lead to an average of 138,000 spinoff jobs annually in the US over the next 25 years, and increase American GDP by $521 billion. In New York State that amounts to as much as $863 million extra for the economy per year, and as many as 8,000 jobs created or preserved on an annual basis. And it means more opportunities for New York City, the world’s finance capital, as companies look for investment to get the necessary infrastructure built. New pipelines and enhanced transport links are critical, if we’re serious about moving large enough volumes of oil to achieve true independence and responsible prosperity together. CONCLUSION To echo remarks by President Obama, North Americans shouldn’t have to choose between jobs, growth and security on the one hand, and strong environmental protection on the other. It’s up to all of us to nurture a deeply rooted partnership, and demonstrate that our vision is broad enough to embrace the environment and the economy. This is what the Canada-US energy trade is about. This is what our friendship and our whole relationship is about. We are striving to overcome the challenges of sustainable growth and development. And our best qualities, from New York’s status as the world’s finance capital, to Alberta’s expertise in environmental and energy regulation, will help us do it. The best in all of us will make our path to energy independence our path to economic recovery. It’s a matter of putting the facts into the debate, so everyone understands what we’re fighting for.


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I look forward to expanding on this in the Q & A. Thank you. —END—