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CAPP and Energy Associations from Around the World Call on COP 26 Delegates to Recognize the Necessary Role of the Natural Gas and Oil Industry in Meeting the Goals of the Paris Agreement

November 5, 2021, Calgary, Alberta

The Canadian Association of Petroleum Producers (CAPP) has joined energy associations from around the world in calling for policy makers at COP26 to recognize the necessary role for natural gas and oil to meet growing global energy demand and the ambitions of the Paris Agreement.

The international consortium of natural gas and oil associations have released a discussion paper outlining joint policy principles including the commitment to working collaboratively with governments around the world to meet their greenhouse emissions reduction goals.

The continued evolution of the world energy system must maintain access to reliable and affordable energy for the world’s over 7 billion people. Today, both developed and developing nations face rising energy insecurity in a context of poorly designed energy and climate policies. Developed nations that once benefited from stable energy supplies are facing energy shortages, price volatility and a lack of infrastructure capable of bringing additional base energy online. This is happening as many other countries still experience serious energy poverty without the ability or resources to supply affordable and reliable energy to their populations to meet the most basic of human needs. These countries are being forced to turn to higher emission sources, as evidenced by the rapid rise of coal demand, to try and meet their energy needs.

The group of natural gas and oil associations is calling for an inclusive approach in achieving the goals of the Paris Agreement which requires increasing, not restricting, energy access, including access to responsibly produced and lower emission natural gas and oil.

The consortium includes; Canadian Association of Petroleum Producers (CAPP), African Energy Chamber (AEC),), Mexican Association of Hydrocarbon Companies (AMEXHI), Croatian Gas Center Ltd., African Refiners & Distributors Association (ARDA), Petroleum Institute of Thailand (PTIT), Canadian Energy Pipelines Association (CEPA), Indian Resources Council of Canada (IRC) and the Australian Petroleum Production & Exploration Association (APPEA).

  1. The natural gas and oil industry commits to continue working collaboratively with governments to meet GHG emissions reduction goals consistent with the ambitions of the Paris Agreement.
  2. Responsibly produced natural gas and oil can help countries, especially developing countries, make progress towards ambitious Nationally Determined Contributions (NDCs).
  3. Energy infrastructure will play an integral role in achieving a lower-GHG emission future but requires support from policymakers and international financial institutions (IFIs).
  4. Technology and innovation is crucial to reducing GHG emissions in the oil and natural gas industry and can enable the accelerated deployment of promising emerging energy technologies.

The discussion paper can be downloaded here.

 

Supporting Quotes:

“As we watch nations around the world struggle to provide energy to their citizens, Canada must step up and offer a safe haven for oil and natural gas investment, so our trading partners have access to reliable, affordable and responsibly developed oil and natural gas. An increasing role for Canada as an energy supplier to these nations would support hundreds of thousands of Canadian jobs, billions of dollars in Indigenous business partnerships, and billions in clean technology innovation that will support other sectors of the Canadian economy and international customers in meeting their energy demands while contributing to global emissions reductions.”

-Tim McMillan, CAPP President & CEO

 

“Today in Africa there are 580 million people who lack access to any kind of electricity and that number is expected to grow exponentially in the next decade. As the cost of energy increases globally, African nations will be left behind in the energy transition should it be asked to undergo a catastrophic rapid transition at a pace foreign to its realities. Sustainable development of the continent’s vast natural gas resources is a strong instrument in our continent’s fight against energy poverty.”

-Verner Ayukegba, Senior Vice President, African Energy Chamber

 

“As the natural stewards of Mother Earth, we are just as alarmed about the effects of climate change as others. However, I know we can and should develop our natural resources in sustainable ways that balance our goals of creating sustainable economies while protecting Mother Earth. Canada’s oil and gas industry is certainly a model of sustainable resource development. Many indigenous groups have partnered with industry and have derived many benefits that have sustained their economies. We now have a strong voice and are consulted often to ensure development occurs with our participation and input while ensuring respect for the environment. We strongly disagree with activists and others who are bent on shutting down these opportunities which are now at our doorsteps.”

-Stephen Buffalo, President and CEO, Indian Resource Council of Canada

 

“Our industry has a critical role to play in lowering greenhouse gas emissions while reducing energy poverty and advancing economic prosperity. Meeting this challenge requires new policies, continuous innovation, and most importantly, collaboration with society and governments. The Mexican Association of Hydrocarbon Companies is committed to working collaboratively with the Mexican Government to build a lower-carbon future, share industry innovations, and strengthen energy security for Mexico, and the entire region.”

-Juan Manuel Delgado, AMEXHI President

 

“The Australian oil and gas industry supports policies that deliver greenhouse gas emissions reductions, consistent with both the objectives of the Paris Agreement and with the goal of delivering net zero emissions across the Australian economy, as part of a contribution to global net zero emissions by 2050. COP26 comes at a crucial moment and provides the opportunity to negotiate higher and faster emissions reduction targets to achieve the objectives of the Paris Agreement and to finalise key negotiations around the rules needed to implement the Agreement.”

-Andrew McConville, Chief Executive, Australian Production & Exploration Association (APPEA)

 

“Affordable and clean energy can go together with climate action.”

-Dr. Kurujit Nakornthap, Executive Director, Petroleum Institute of Thailand (PTIT)

 

“The African Refiners and Distributors Association is committed to the implementation of a unique Energy Transition Plan for the African downstream oil and gas sector which promotes cleaner cooking and transport fuels and switching to natural gas as a cleaner primary source for power generation in the near term, and adoption of mature, cost-effective renewable technology in the longer term. ARDA’s ultimate objective is to stimulate measured, decade-by-decade investments in the African downstream sector between now and 2050 to effectively transition Africa’s current primary energy mix to a more sustainable, lower-carbon footprint at a pace that is cognizant of the continent’s distinct socio-economic circumstances.”

-Anibor O. Kragha, Executive Secretary, African Refiners & Distributors Association (ARDA)

 

“Underpinning these principles is the reliance on pipeline networks to deliver energy now and in the future. As the most environmentally responsible and least greenhouse gas intensive means of transporting today’s fuels and tomorrow’s renewable energy, transmission pipelines are an essential part of meeting domestic and international energy demand. A transition to a low-carbon economy must evolve in partnership with the natural resources industry broadly and the transmission pipeline industry specifically to ensure current and future energy infrastructure is able to operate efficiently, adapt to market changes, and attract investment that enables innovation.”

-Chris Bloomer, President & CEO, Canadian Energy Pipelines Association (CEPA)

 

“Natural gas is a significant transition energy towards a net zero future. We support the fastest ways to reduce carbon emissions which means switching from coal to lower-carbon natural gas with technologies such as carbon capture, utilization and storage as a long-term solution. New technology for production of biofuels and hydrogen with built natural gas infrastructure will play a key role for the future renewable gas industry.”

– Assist. Prof. Dalibor Pudic, PhD, President of Croatian Gas Association

 

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 $116 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.

 

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