CALGARY, June 18, 2019 /CNW/ - The Government of Canada's new approval to build the Trans Mountain Expansion Project (TMEP) means Canadian oil will finally gain some access to growing overseas markets. This will enable Canada to receive full value for our natural resources while helping to reduce net global greenhouse gas (GHG) emissions, according to the Canadian Association of Petroleum Producers (CAPP).
TMEP is critical infrastructure that will diversify markets for Canadian oil, create a stronger energy future and expand economic benefits for all Canadians.
With vast experience and leadership in technology and innovation, as well as responsible development, Canadian oil producers are ideally suited and ready to play a significant role in providing more efficient energy and modelling best practices. Lowering GHG emissions and minimizing the environmental footprint through technology and innovation are in line with corporate goals of lowering costs, operating efficiently, and being sustainable partners within the communities in which we operate.
The TMEP is a step in the right direction toward offering a longer-term solution to improve investors' confidence in Canada.
CAPP expects an average incremental $20 billion of annual investment in the sector if domestic competitiveness is enhanced, an extra $45.4 billion in economic activity by 2030, sustaining 120,000 direct and indirect jobs, and government revenues of approximately $7.5 billion per year.
The International Energy Agency's (IEA) World Energy Outlook 2018 report projects that in 2040 oil will comprise 27 per cent of total world energy demand, or 105 million barrels per day (b/d) – representing the largest share of any fuel source. The world needs more energy and a significant amount currently comes from sources that do not have Canada's environmental and social standards. Canada can now seize this opportunity to be a leader in supplying responsibly produced energy to a growing global middle class, displacing fuels produced from other jurisdictions with lower or no standards.
CAPP President and CEO, Tim McMillan, will host a media availability at 4:30 pm MST (6:30 pm ET).
Tuesday, June 18, 2019
Location for TV broadcasters:
Canadian Association of Petroleum Producers
2100, 350 – 7 Ave. SW Calgary, AB
Conference call details:
Participants are asked to call in 5-10 minutes in advance
The Canadian Association of Petroleum Producers quotes: Tim McMillan, president and CEO
"With some of the highest environmental standards in the world, and a commitment to innovation and new technology development, Canada can play a leadership role in responsibly produced energy, while still attracting investment, spurring innovation, creating jobs, and maintaining economic benefits across the country."
"The Fraser Institute concluded in a recent report that in 2018 alone, around $20 billion in revenues were lost because of the lack of pipeline capacity. The time to build Trans Mountain is now."
"Increased market access is one facet of a long-term vision for economic growth – it also includes improving regulatory policy, Indigenous prosperity, climate and innovation, and fiscal and tax policy to promote Canada-wide prosperity."
"Trans Mountain is in the best interest of Canadians and poll after poll have shown that a majority of Canadians support it. They are waiting for this project to start and eager for the jobs that hang in the balance."
Capital investment across Canada's oil and natural gas industry is forecast to fall to $37 billion in 2019, down from $81 billion in 2014.
In 2017, the energy sector employed close to 530,000 Canadians in 2017, drove business activity for over 2,200 company through the supply of good and services and provided $7 billion in government revenues over the three year period of 2015-2017.
Today, nearly all of Canada's oil exports are delivered to refineries in the United States. In 2018, Canada exported more than 3.6 million b/d to the U.S., while less than one per cent of exports were delivered to other markets.
The Enbridge Line 3 Replacement project, TC Energy Keystone XL project, and the TMEP were all delayed in 2018. In addition, price differentials reached record highs, resulting in the Alberta government implementing a production curtailment program.
The International Energy Agency's (IEA) World Energy Outlook 2018 report projected that in 2040 oil and natural gas will make up 53 per cent of total global energy demand.
Canada produces less than 1.5 per cent of global greenhouse gas emissions. With improved government policy and access to markets, Canada's oil and natural gas can have a major impact on net global emissions reduction by displacing more emissions-intensive energy sources and taking back market share from producing nations with lower environmental and social standards.
The oil and natural gas industry invests billions of dollars annually on environmental protection initiatives.
$3.7 billion in 2016, making up nearly half of all private sector investment on environmental protection, according to Statistics Canada.
In 2014, the oil and natural gas industry spent $6.5 billion on environmental protection measures – about 55 per cent of the total spend by all Canadian businesses.
Innovations in extraction technology are making it possible to sustainably produce and consume Canada's vast oil resources – emissions intensity in the oil sands has decreased by more than 20 per cent since 2009 and will decrease further with the scale-up of new technologies.
The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and oil throughout Canada. CAPP's member companies produce about 80 per cent of Canada's natural gas and oil. CAPP's associate members provide a wide range of services that support the upstream oil and natural gas industry. Together CAPP's members and associate members are an important part of a national industry with revenues from oil and natural gas production of about $101 billion a year. CAPP's mission, on behalf of the Canadian upstream oil and natural gas industry, is to advocate for and enable economic competitiveness and safe, environmentally and socially responsible performance.
SOURCE Canadian Association of Petroleum Producers
For further information: Elisabeth Besson, Canadian Association of Petroleum Producers, Media Relations Advisor, T: 403.267.1179, E: [email protected]