A. Research and Development

Canada is leading the world in natural resource development because of the oil and gas industry’s commitment and contribution to innovation through research and development (R&D). Mr. Khosla observed that “Canada is seen as a world leader … in terms of its innovative ability to develop these resources,” and that countries want Canada’s help and expertise when it comes to developing their own resources.[158] According to Ms. Annesley, environmentally efficient technologies developed in Canada’s heavy oil extraction will be highly exportable to other oil-producing countries, such as Venezuela.[159] She stated that:

The technologies that we develop there in heavy oil extraction, particularly on the environmental front [for example] non-aqueous extraction, or carbon capture and storage, [are] types of technologies [that] are going to be highly exportable to other oil-producing countries, places like Venezuela and others where they just don't have the kind of innovation culture that private enterprise brings.[160]

The Committee also heard that “around the world, when [Canada] sign[s] agreements with various countries, [it has] an energy dialogue….”[161] For example, in “… India, China, Japan, the first thing they obviously want to talk to us about is very clearly the resource” and “the very next thing they generally want to talk to us about is our innovations in terms of developing the resource, so that we can help them.”[162]

Part I of this report discussed how the oil and gas industry supports the development of Canada’s clean technology sector, and funds environmental R&D and innovation. Yet, the Committee also learned that industry’s innovation benefits extend beyond the environment sector. For example, Virtual Marine Technology (VMT) is an innovative company that emerged with the help of the oil and gas industry and government financing. VMT has developed simulators that train and prepare offshore oil and gas workers for emergency situations that are specific to offshore installations. Mr. Patterson told the Committee that investment in innovation is one of the big benefits he sees coming from the oil and gas industry.[163] Specifically, he remarked “You can imagine what impact [investment] has in the development of micro-companies that are very locally focused to regional players. Some of us have now broken into the export markets, and when we do so, we more than triple our revenues.”[164]

Similarly, Mr. McCrea observed that the oil and gas industry enables entrepreneurship, and that it provides “vast opportunities for enterprising individuals to be a part of the supply chain.”[165] He also stated that :

What's interesting about being an entrepreneur in the oil and gas industry is that it opens the door to a variety of backgrounds in everything from starting a janitorial service, which may not require significant post-secondary education, to fabrication shops, which require some trades, to working on the leasing side of the business, which requires a finance background. In other words, there's huge variability in the opportunities that exist within the oil sands, which is what is so attractive about it to me and to so many others.[166]

Wealth associated with the development of oil and gas resources also supports progress, and environmental efficiencies in industrial production and operations. Mr. Desrochers explained that :

… if the past is any indication, there will be progress. There will be innovation. We heard about the natural gas industry this morning … but … this is the whole history of the energy sector turning waste into wealth, creating wealth out of what used to be a pollution problem. Let's not block things. Let's focus instead on human creativity and again creating wealth out of what are problems.[167]

He added that if “you can turn a problem into an opportunity and improve your bottom line, that is still … the main driver of greater efficiency and greener behaviour in business….” In his view, this process “… has been going on for a century and a half in the oil business.”[168] The Committee also heard from other industries about the importance of operational efficiencies and better environmental performance. For example, Canada’s steel industry recycles over seven million tonnes of steel per year. According to Mr. Watkins, “Not only does this add economic value and create necessary and valuable products for the oil and gas industry, and over 1,000 jobs in Regina alone, but it also contributes to steel's environmental record as the most recycled product in Canada.”[169]