CAPP 2016 Priorities

2016 Priorities for CAPP
CAPP's 2016 Strategic Priorities As Approved by the CAPP Board of Governors

Priority

Where we’re at

Key Actions/Targets for 2016

Market Access

Market Access

Oil: More capacity is required to accommodate future production growth and increasing global energy demand.

Natural Gas: The shrinking of traditional markets in the U.S. creates a need for new markets such as overseas LNG.

  • Gain regulatory support for new infrastructure and capacity.
  • Gain public and government support through advocacy emphasizing the safety and economic benefits of transportation infrastructure.

Royalty Framework

Royalties

The Alberta government’s new royalty regime leaves oil sands royalties unchanged while introducing a simpler and more standardized royalty framework to non-oil sands wells to take effect in 2017.

  • Advocate for balanced policy decisions that maintain competitiveness and minimize adverse impact to industry.
  • Provide industry expertise to ensure design details are effective and efficient.

Climate Change Policy

Climate Change Policy

The Alberta government climate leadership plan includes a broad carbon price and an overall emissions cap for oil sands. The federal government plans to introduce a pan-Canadian framework for combating climate change.

  • Advocate for balanced policy decisions that maintain competitiveness and minimize adverse impact to industry.
  • Provide industry expertise to ensure design details are effective and efficient.

Government Change Management

Government Change Management

There is a new federal government, new governments in Alberta and Newfoundland and upcoming elections in Manitoba (April 19, 2016) and Saskatchewan (April 4, 2016).

The federal government has identified several key policy/legislation targets which have direct impacts on industry (i.e. NEB review, fossil fuel “subsidies”, BC crude tanker moratorium, Aboriginal engagement, SARA, etc.).

  • Continue education, dialogue and relationship building across all levels of government.
  • Advocate on behalf of industry priorities (market access and competitiveness).

Aboriginal Engagement

Aboriginal Engagement

CAPP’s Aboriginal Engagement Initiative is under way with initially positive responses.

  • Continue CAPP’s Engagement Initiative and seek to build positive partnerships among industry and Aboriginal groups.
  • Continue advocacy with Alberta government (and initiate at federal level) on UNDRIP* implementation: building upon strengthened Crown engagement and seeking an implementation approach consistent with Canadian constitution and law.

Species at Risk Act

Species at Risk Act

The federal government requires the provinces have range plans to protect caribou habitat in place by 2017. There is risk of a moratorium on resource development and increased access costs within caribou ranges in B.C. and Alberta.

  • Continue advocacy for a solutions-based approach, highlighting the net positive impact of oil and gas development.

Hydraulic Fracturing

Hydraulic Fracturing

Recent seismic events in Alberta and B.C. have raised concern regarding hydraulic fracturing practices and regulations.

  • Continue to develop awareness of the issue and the strong regulatory practices in place to mitigate risks.
  • Develop stronger advocacy messages with science-based evidence of past performance and innovation.

Oil Sands Policy Issues

Oil Sands Policy Issues

Upstream environmental performance for the oil sands continues to be a focus for the public, industry and governments.

  • Seek areas of alignment within CAPP and beyond (e.g. COSIA) to demonstrate environmental performance and leadership.
  • Provide technical expertise to the Government of Alberta on select topics to inform responsible policy/regulation development.
  • Ensure government understands the cumulative cost burden caused by multiple policies and regulations impacting the industry.

Municipal Taxes

Municipal Taxes

The Alberta municipal government act (MGA) review is in the legislative development phase. Saskatchewan is undertaking a municipal tax review. Municipal taxes are a significant cost burden for producers.

  • Continue to advocate for a review of legislation that focuses on tax reductions and assessment practice improvements.

Liability

Liability

Liability management (related to, for example, orphan wells) is an area of growing concern.

  • Continue to develop policy/regulatory solutions and alternatives for government consideration.

*UNDRIP: U.N. Declaration on the Rights of Indigenous Peoples



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