Canada steps up to make a long-term investment in its future and a commitment to be a global energy supplier

May 29, 2018 - Calgary, Alberta
The Government of Canada’s acquisition of the existing Trans Mountain pipeline system and Trans Mountain expansion pipeline (TMEP) is a long-term commitment in the future of the country’s oil and natural gas industry. This project will enable the creation of jobs and prosperity for a new generation of Canadians, according to the Canadian Association of Petroleum Producers (CAPP).

CAPP is pleased the construction of this project will get underway – demonstrating confidence in Canada’s energy sector and ensuring full market value for the country’s natural resources. The government’s political and financial backing guarantees construction of the pipeline will resume, and provides industry the assurance it has been seeking.

Although the federal government’s commitment is a step forward, this project was always economically viable for private-sector investment based on the long-term returns it would have for Canada. These are exceptional circumstances and should not be considered the norm. 

Now that this project has the full backing of the highest level of government in the country, we expect Ottawa to be committed to overcome any legal, political, or activist barriers that may remain. 

The British Columbia government’s dispute with TMEP was about more than just one pipeline, one industry or one province. Instead, it created mounting political uncertainty and repercussions for many industries across Canada seeking government approvals and global investors. If the government wants this to be a success, it must ensure the project is managed responsibly to prevent cost overruns due to continued opposition from the B.C. government and organized activists.

The TMEP is critical infrastructure needed to move Canadian energy to world markets and restore investor confidence in Canada’s economy and political system. It signals Canada is open to business and energy trade with international investors. 

The construction of the TMEP will begin to restore global confidence and competitiveness to Canada’s energy sector and reduce the country’s reliance on a single export customer – enabling Canadians to sell their energy for higher global prices on more world markets. 

Canadian Association of Petroleum Producers quotes: Tim McMillan, president and CEO
  • “Construction of the Trans Mountain expansion pipeline will show Canada is open for business.”
  • “We are pleased the pipeline will be built. It has full regulatory, legislative, financial and political backing of the highest level of government, and will ultimately be returned to the private sector where it belongs.”
  • “Ottawa’s investment in Trans Mountain demonstrates confidence in Canada’s energy sector. The project was approved on its merits and in the best interests of the nation.”
  • “Ottawa’s investment shows that organized activists can’t derail projects that are in the best interest of Canada.” 
  • “Canada is a world leader in responsible energy development – and the Trans Mountain expansion pipeline will open our doors to more global energy trade.”
  • “Construction of the Trans Mountain expansion pipeline will create jobs and economic prosperity for all Canadians – even in provinces where they don’t have oil.”
  • “Building the Trans Mountain expansion is the first step to making Canada competitive for investment in the global energy market. It will begin to reduce our reliance on one customer and enable Canadians to get a fairer price for their natural resources.”
Supporting information
  • The world’s population is expected to exceed nine billion people by 2040, resulting in increased demand for all forms of energy. Oil and natural gas is expected to represent 52 per cent of the total energy mix, according to the International Energy Agency.
    • Total world oil consumption is expected to increase to 105 million barrels per day (b/d) by 2040, compared to 94 million b/d in 2016.
    • Natural gas consumption will rise 45 per cent in 2040 to 199 trillion cubic feet (Tcf) versus 129 million Tcf in 2016.
  • Canada’s existing pipeline network is currently operating at capacity at four million b/d. CAPP forecasts the annual supply of western Canadian oil will rise to 5.4 million b/d by 2030, an increase of 1.5 million b/d from 2016.
  • Ontario, Quebec and Atlantic Canada import 600,000 b/d from the United States, Africa, and the Middle East, and another 2.4 billion cubic feet per day of natural gas.
  • Oil and natural gas is Canada’s largest export industry, creating nearly $110 billion in gross domestic product (GDP) and generating more than 500,000 jobs across the country.
The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and crude oil throughout Canada. CAPP’s member companies produce about 80 per cent of Canada’s natural gas and crude oil. CAPP's associate members provide a wide range of services that support the upstream crude oil and natural gas industry. Together CAPP's members and associate members are an important part of a national industry with revenues from crude oil and natural gas production of about $110 billion a year. CAPP’s mission, on behalf of the Canadian upstream crude oil and natural gas industry, is to advocate for and enable economic competitiveness and safe, environmentally and socially responsible performance.

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