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Canadians should be startled by the International Energy Agency's recent World Energy Outlook reporting that the United States will become the world's largest oil producer by 2017 and be almost energy self-sufficient by 2035.

Currently, 97 per cent of our export oil goes to America and if the U.S. stopped buying Canadian oil, the impact on our economy would be substantial.

For decades, we have relied on energy exports to the U.S. It has become a pillar of our economy. If that pillar falls and the U.S. stopped importing our oil, the cost would be astounding. Suddenly, 2.2 million barrels of oil a day could be left unsold and Canadians risk losing $188 million a day — or $68 billion annually — based on today's prices.

Our reliance on America has made sense for years. We have energy to spare and they have been one of the world's largest consumers for almost a century. But the rapid development of unconventional oil has unlocked tremendous new reserves for the U.S., most notably in the Bakken play, which spreads throughout the northern Midwest. With oil shale production becoming more effective and economical, the U.S. is poised to overtake all of the traditional leading oil producers and become a major exporter, not an importer.

The global energy future is shifting dramatically and Canada must take steps to ensure we are not left behind.

The Energy Policy Institute of Canada identified market diversification as one of the priorities proposed in our national energy framework report delivered to provincial and federal governments in August. Diversifying your markets in any industry is the easiest way to protect yourself from sudden shifts either due to markets or the overall economy.

The institute views market diversification as a direction Canada needs to swiftly act upon to ensure drawing economic and social benefits from energy exports. Looking at the projections for American oil production, diversifying our energy markets is no longer a direction we need to explore. It has become an urgent need that, if not addressed, will become a national crisis.

This is Canada's wake-up call. We must remember that we do not exist in a vacuum with the U.S. and that other countries also will be dramatically affected by U.S. oil independence. Canada's exports now only make up between 25 and 30 per cent of total U.S. oil imports. Other states that have traditionally sold oil to America are in a similar situation as Canada and also need to find new markets for their oil.

With exports to the U.S. declining overall, oil-exporting countries will all be looking for new markets. Many of these countries have easier access to alternate markets and often don't have the same regulatory or environmental stringency as our country.

Canada's quest to access these same markets cannot be a single effort but needs to be truly diversified, with Canada looking to several potential markets and finding the arrangement that provides us with the best possible return for our resources. The consequences of doing nothing and letting time slip away leaves us vulnerable as hostages to a market where our traditional natural advantage as a supplier is no longer sufficient.

Because of geography, the only easy export route over land for our energy is the U.S. It is vital Canada get the infrastructure in place to allow our oil and other energy products to access overseas markets. This is not a matter of the interests of a single province, but of national consequence.

If we fail to act, every province will feel the economic pain. Producing provinces would see royalties fall, jobs lost and tax revenue drop. All provinces would suffer financial impacts to manufacturing and to other industries that service the energy sector.

This scenario is equally as drastic in every publicly funded social benefit that Canadians enjoy. A loss of revenue would impact on our ability to finance our schools, emergency services, roads and railroads and to support the social services so many Canadians need.

Energy exports are a key driver of our national economy and enable Canadians to enjoy some of the highest quality of life in the world.

Canada has sizable advantages over virtually any other energy-exporting country on Earth, but without the will to act, these advantages are wasted. Creating a common-sense Canadian approach to develop, manage and advance our energy economy responsibly will benefit every Canadian if we are willing to seize the opportunities presented to us.

We need to come together now to protect our way of life and to secure economic and social benefits for our energy future. The alternative is to leave future generations with a poorer Canada.

— Dan Gagnier is president of the Calgary-based Energy Policy Institute of Canada.