Members of the Canadian Association of Petroleum Producers stood united at an unprecedented press conference to express concern in Calgary, Alberta to voice their concerns about Bill C-69, the Impact Assessment Act, and the effect the legislation will have on the future of energy development in Canada. Below are a series of statements made by member CEOs.
Sue Riddell-Rose, president, Perpetual Energy
One of the most disturbing parts of what we’re experiencing today is that it’s really back to process and certainty. We are concerned about the lack of certainty that Bill C-69, in its current form, actually would present for our industry. We’re telling you that our investors will not participate.
In terms of process, we went to a full Senate review coast-to-coast-to-coast, getting input at an unprecedented level from Canadians from every sector – whether its industry interested in this Bill particularly, or people that were wanting to see different amendments. The Senate was actually very thoughtful in putting all of those amendments together. They made a proposal to parliament, or to the House of Commons, and that was completely disregarded. And process like that is not going to move our country forward in the interests of Canadians, and that is what the uncertainty is about.
Satoshi Abe, president, Japan Canada Oil Sands
My company, Japan Canada Oil Sands Limited, has invested $2 Billion over the past 40 years in this country. … We are proud to be part of the Canadian initiative, environmentally and socially responsible resource development. We are owned by Japanese investors, and the Canadian oil resource industry, in general, has a good reputation in Japan. Canada is highly thought of as a supplier of hydrocarbons to the export market.
Despite this, Canada has created significant barriers to new investment. Additional investment in Canada will only become attractive once there is additional de-risk for its resources and improved certainty around the regulatory process. Without additional pipelines and market access, Canada’s resources will likely continue to sell at a steep discount to global prices, which is not good for Canadians, and makes new investment extremely challenging.
Increasing regulatory hurdles and uncertainty simply add to the challenges; making Canada unattractive when compared to other jurisdictions. As a 14-year member of the Canadian energy industry, the current situation is very critical for our company.
Rich Kruger, chairman/president/CEO, Imperial Oil
We support the objective of a rigorous, comprehensive environmental assessment process to ensure Canada’s resources are developed responsibly. We believe that the process should hold industry accountable to high standards while being clear in its requirements, and predictable in its outcomes. Unfortunately, as currently written, Bill C-69 does not achieve these objectives.
Amendments by the Senate to Bill C-69 have been characterized as industry-friendly -- that simply is not true. These amendments were adopted following nationwide input and extensive consultation, thoughtful negotiation and compromise on the part of industry.
It’s time to be clear and candid with Canadians that there needs to be a balance between environmental protection and economic opportunity. Bill C-69 simply does not achieve that balance. This bill, in its current form, is unworkable from a major investor perspective, and continues to perpetuate a climate of regulatory risk and uncertainty.
When I speak with our investors, domestic and abroad, they tell me Canada’s regulatory uncertainty has a negative effect on how they view political and regulatory risk. Many increasingly say they no longer view Canada as an attractive place to invest. This ultimately impacts not only investment in our economy, but also people’s jobs and personal growth opportunities.
This sad state is one of the reasons Imperial decided to slow down our $2.6B investment in the Aspen oil sands project earlier this year. Should Bill C-69 become law in its current form, we will unfortunately need to deeply consider any and all future investment growth opportunities.
Mark Little, president/CEO, Suncor Energy
We’re disappointed and concerned that this Bill jeopardizes future development and does not restore investor confidence in our industry and country. The Senate amendments were a reflection of a diligent and robust effort to gather feedback from all Canadians and the Senate put forward a Bill that was balanced, workable and had broad support. Had these critical amendments been included, it would have done a lot to restore investor confidence. Instead, we will now risk further uncertainty to the detriment of future responsible Canadian resource development and jobs.
Marty Proctor, president/CEO, Seven Generations Energy
I think there’s an opportunity that Canadians are missing here. We have responsibly developed resources, the world’s demand for hydrocarbon energy is going to increase, and we have an opportunity to help supply that. In doing so, we can make the world a better place. We can reduce global greenhouse gases and we can help solve energy poverty in the world, and we can also help our own economy at the same time. I have worked around the world and I know we develop our resources better than anybody else does. We have an opportunity as Canadians to restore some national pride in helping to supply the energy the world needs in a better way.
Glenn Gradeen, president/CEO, Tangle Creek Energy
Our main investors are Canadian, American and from the UK and I’m scared because they look at me and say, ‘We want out. We just don’t believe that you’re going to be able to turn this around. Your government is not supportive in anyway whatsoever.’… On our website the first three slides talk about our ESG – environmental, social and governance responsibility. Our oil production is top decile of all the oil consumed in North America in terms of GHG emissions. We are 71 per cent less than the average consumed in the U.S. We’ve done everything we can possibly do and yet we have a government that won’t support us. We should be the last man standing, not the first one to go down.
Alex Pourbaix, president/CEO, Cenovus Energy
Statement can be found on Twitter here.
Mike Rose, chairman/CEO/president, Tourmaline Oil
Resource development and the environment – no industry works harder than ours to balance those two aspects. Fifty per cent of all the funds invested in environmental performance and improvement by all industrial sectors across Canada is from the oil and gas sector. The result of that over the years has been that Canadian oil and gas produces the net cleanest hydrocarbon molecule in the world. We are the best at it and industry continues to work on improving that performance.
As we look forward to what the energy mix for the world is going to look like, it’s suggested somewhere between 50 and 55 per cent of the world’s future energy requirements are going to be met by oil and gas. … Oil and gas resources are going to get developed in the world – they absolutely have to – and that’s what will improve the standard of living in the developing world because we’ve figured out how to develop very cheap energy.
The best thing for Canada and the best thing for the world is that we develop as much of that oil and gas within our own country as is possible, and deliver those net cleaner hydrocarbon molecules to all the other jurisdictions in the world that need them. It’s the best thing for the global atmosphere because we have the cleanest hydrocarbon molecule. It’s also the best thing for Canada because we will create hundreds of thousands of jobs on a continuous basis for this country. It’s an economic win and it’s a global environmental atmospheric win.
Unfortunately, C-69 and C-48 really prevent that from happening. If we do not get new pipelines and egress, Canada will not be providing those hydrocarbons and improving the environment throughout the world.
Jeff Tonken, CAPP chair, president/CEO, Birchcliff Energy
We believe that the companies that operate today in Canada have changed the way they operate, so they are some of the lowest cost producers in this industry. They’re healthy companies that produce significant cash flow. … Because of current legislation and now Bill C-69, investors are watching and have chosen to leave the industry because they don’t believe we are going to be able to get our product to tidewater. They can sell their stocks today, take their investment dollars and invest anywhere in the world. They make investments where companies get the best prices for their commodities. We believe Bill C-69 will be the end of the future growth of commodities being able to get to tidewater.
What we believe is the federal government is positioning itself to let the energy industry die so that they can get votes to get re-elected. We spend significant money on the environment not because we have to do that, but because we believe in the environment. We believe in environmental stewardship. We believe that all Canadians should be heard and we should be respectful of everything that everybody puts forward.