Merci pour votre visite du site Internet capp.ca. La version française de notre site est présentement en refonte et sera disponible sous peu.

Statements

Canadian Association of Petroleum Producers (CAPP) opposes Canadian export taxes to counter U.S. tariffs 

January 13, 2025 (Calgary, Alberta)

“CAPP and its member companies would strongly oppose any form of export tax applied to Canadian oil and natural gas being sold in the United States.  A counter measure such as placing a tax on exports to the United States would mimic and amplify the negative effects of a U.S. import tariff.

Any effort that reduces the value of Canadian oil and natural gas to our largest customer will result in lowering investment, declining production leading to unemployment, and be detrimental to affordability and energy security.

CAPP also opposes any thought of restricting exports as a measure to counter U.S. tariffs. The interconnectedness of the two countries’ energy infrastructure and long-term legal contracts in place would make it virtually impossible to stop the flow of oil and natural gas over the border.

Measures such as these being considered by the federal government will only inflict further economic pain on Canadians if tariffs from the U.S. come into effect.

Canadian oil and natural gas make up the largest part of Canada’s trade value, representing 25 percent of all the country’s exports and about $150 billion worth of energy trade with the United States annually. This is why it is incredibly important for federal and provincial policy makers to leverage the expertise of Canada’s oil and natural gas industry and work in true partnership to develop workable solutions to avoid or mitigate the risk of U.S. tariffs.

Canada is in this position because for nearly a decade the federal government has cancelled export projects and added layers of restrictive policies that have limited investment into the industry. Projects like Energy East and Northern Gateway would have opened access to global markets while also creating capacity to get products directly to Canadians across the country.

Instead, we remain locked into a single customer who is now motivated and willing to leverage that position against Canada.

Canada must also wake up to the reality that we need to diversify our global customer base, not just for energy but for all Canadian products, to build a more prosperous and resilient economy.

– Lisa Baiton, CAPP President & CEO

About CAPP

The Canadian Association of Petroleum Producers (CAPP) is a non-partisan, research-based industry association that advocates on behalf of our member companies, large and small, that explore for, develop, and produce oil and natural gas throughout Canada. Our associate members provide a wide range of services that support the upstream industry.

CAPP’s members produce nearly three quarters of Canada’s annual oil and natural gas production and provide approximately 450,000 direct and indirect jobs in nearly all regions of Canada. According to the most recently published data, the industry contributes over $70 billion to Canada’s GDP, as well as $45 billion in taxes and royalties to governments across the country. CAPP is a solution-oriented partner and works with all levels of government to ensure a thriving Canadian oil and natural gas industry.

We strive to meet the need for safe, reliable, affordable, and responsibly produced energy, for Canada and the world. We are proud to amplify industry efforts to reduce GHG emissions from oil and gas production and support Indigenous participation and prosperity.

– 30 –

For additional information:

Elisabeth Besson

Media and Issues Manager, CAPP

403.465.2548