FINANCIAL POST COLUMN: Read between Zelenskyy’s lines — Canada needs to export more oil and gas

Shortly after Ukraine President Volodymyr Zelenskyy’s recent speech to Parliament, his message was lost in an explosion of media coverage over a standing ovation given to a controversial (to say the least) Second World War veteran.

It’s important however for Canada to return to the subtle but clear message in Zelenskyy’s speech about what’s going on in the world and how, in response, Canada needs to export more oil and natural gas.

As Zelenskyy said: “Russia uses nuclear technology, and the construction of nuclear power plants, like gas and oil, for political attacks against the sovereignty of other nations. Russia is trying to break the sovereignty of others through its manipulation of energy resources … all energy resources. So, the more nations are free from Russian energy resources, the sooner energy in the world will once again become just an energy resource, not a weapon against sovereignties.”

“The more nations are free from Russian energy resources …” Why would Zelenskyy make this point to the parliament of a country that doesn’t buy oil and natural gas from Russia anymore? Because he knows Ottawa’s policies have kept Canada from building pipelines and exporting oil and gas to countries that are buying Russian energy resources. If these other countries purchased more of their oil and gas from Canada and less from Russia, then Vladimir Putin would have fewer dollars to buy tanks and rockets to attack Ukraine with. The connections aren’t complicated.

Despite Western sanctions, including boycotts of Russian oil, Russia’s revenues from petroleum exports are up an estimated $15 billion this year, according to the Kyiv School of Economics. While the EU has drastically cut back on Russian crude purchases, an increase in Russian oil sales to India and the general rise in the world price have made up for it.

Zelenskyy couldn’t be too pushy about this issue on Canadian soil, of course. Our federal government has committed a reported $9.5 billion to Ukraine since the war began. The Ukrainian president needs all the help he can get. Criticizing Ottawa for its energy policies would be kicking a gift horse in the mouth.

Last year, research by SecondStreet.org concluded that if Canada made it a priority to develop and export our oil and natural gas resources, we could replace about half of Russian energy sales by the end of the decade. It’s hard to think of a more effective way to pull the rug out from under Putin.

As the war drags on, it’s easy to forget what’s happening overseas. As we in the West worry about what we’re having for dinner or our weekend plans, Ukrainians are worried about being attacked in the middle of the night and Russian forces abducting their children or worse.

Filmmaker Olesya Shyvikova told SecondStreet.org about a conversation she had recently with a Ukrainian farmer turned soldier. Through Zoom, she asked him about a grenade that she saw in his shirt pocket. He told her he carries two at all times in case he’s captured. One is for throwing at Russian soldiers and the other is for taking his own life, given the atrocities some Russians have been accused of committing.

Ottawa needs to get over its fixation on climate change and recognize there are other serious threats to the existing world order. Zelenskyy is obviously right: Putin is using energy as a weapon. And his forces are hurting people in ways that seem unfathomable in our peaceful nation.

If Canada built more pipelines and exported more oil and gas, Ottawa could make a small fortune in tax revenues. It could use those dollars to both “fight climate change” and help Ukraine fight Russia. That would make more sense than the status quo. Read between Zelenskyy’s lines and it’s clear he agrees.

Colin Craig is president of the think-tank SecondStreet.org.

This column was originally published in The Financial Post on October 3, 2023.

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Prevention – reduce demand in the first place

If Canadians lived healthier lives, we could reduce demand for emergency services, orthopaedic surgeries, primary care and more. 

For instance, if you visit the Canadian Cancer Society’s website, you’ll read that “about four in ten” cancer cases are preventable. The Heart and Stroke Foundation notes that “almost 80 percent of premature heart disease and stroke can be prevented through healthy behaviours.” A similar number of Diabetes cases are also preventable. 

Many joint replacements and visits to ERs and walk-in clinics could also be avoided through healthy living. 

To be sure, not all health problems can be avoided through healthy living – everyday the system treats Canadians with genetic conditions, helps those injured in unavoidable accidents and more.  

But there is an opportunity to reduce pressure on the health care system through Canadians shifting to healthier lifestyles – better diets, more exercise, etc. 

To learn more, watch our Health Reform Now documentary (scroll up) or see this column. 

Partner with non-profits and for-profit clinics

European countries will partner with anyone who can help patients. 

It doesn’t matter if it’s a non-profit, a government entity or a private clinic. What matters is that patients receive quality treatment, in a timely manner and for a competitive price.  

In Canada, governments often delivery services using government-run hospitals instead of seeing if non-profit or private clinics could deliver the services more effectively. 

When governments have partnered with non-profit and private clinics, the results have often been quite good – Saskatchewan, Ontario and British Columbia are just a few examples of where partnerships have worked well. 

Canada should pursue more of these partnerships to reduce wait times and increase the volume of services provided to patients.  

To learn more, watch our Health Reform Now documentary (scroll up) or see the links above. 

Make cross border care more accessible

In Canada, citizens pay high taxes each year and we’re promised universal health care services in return. The problem is, wait times are often extremely long in our health system – sometimes patients have to wait years to see a specialist or receive surgery. 

If patients don’t want to wait long periods, they often have to reach into their own pocket and pay for treatment outside the province or country. 

Throughout the European Union, we also find universal health care systems. But a key difference is that EU patients have the right to go to other EU countries, pay for surgery and then be reimbursed by their home government. Reimbursements cover up to what the patient’s home government would have spent to provide the treatment locally. 

If Canada copied this approach, a patient waiting a year to get their hip operation could instead receive treatment next week in one of thousands of surgical clinics throughout the developed world. 

Governments benefit too as the patient is now back on their feet and avoiding complications that sometimes come with long wait times – meaning the government doesn’t have to treat those complications on top of the initial health problem. 

To learn more, watch our Health Reform Now documentary (scroll up) or this shorter video. 

Legalize access to non-government providers

Canada is the only country in the world that puts up barriers, or outright bans patients from paying for health services locally. 

For instance, a patient in Toronto cannot pay for a hip operation at a private clinic in Toronto. Their only option is to wait for the government to eventually provide treatment or leave the province and pay elsewhere. 

Countries with better-performing universal health care systems do not have such bans. They allow patients a choice – use the public system or pay privately for treatment. Sweden, France, Australia and more – they all allow choice. 

Why? One reason is that allowing choice means some patients will decide to pay privately. This takes pressure off the public system. For instance, in Sweden, 87% of patients use the public system, but 13% purchase private health insurance. 

Ultimately, more choice improves access for patients. 

To learn more, watch our Health Reform Now documentary (scroll up) or watch this short clip on this topic. 

Shift to funding services for patients, not bureaucracies

In Canada, most hospitals receive a cheque from the government each year and are then asked to do their best to help patients. This approach is known as “block funding”. 

Under this model, a patient walking in the door represents a drain on the hospital’s budget. Over the course of a year, hospital administrators have to make sure the budget stretches out so services are rationed. This is why you might have to wait until next year or the year after for a hip operation, knee operation, etc. 

In better-performing universal health systems, they take the opposite approach – hospitals receive money from the government each time they help a patient. If a hospital completes a knee operation, it might receive, say, $10,000. If it completes a knee operation on another patient, it receives another $10,000. 

This model incentivizes hospitals to help more patients – to help more patients with knee operations, cataract surgery, etc. This approach also incentivizes hospitals to spend money on expenses that help patients (e.g. more doctors, nurses, equipment, etc.) rather than using the money on expenses that don’t help patients (e.g. more admin staff). 

To learn more about this policy option, please watch our Health Reform Now documentary (scroll up) or see this post by MEI.