CAPP Releases Statement on Global Oil Price Drop
March 9, 2020 – Calgary, Alberta
Price shocks are a normal part of the commodities business and historically the Canadian oil and natural gas industry has been strong enough to weather similar fluctuations in the oil price. Today we are not.
A series of infrastructure delays and cancelations such as Energy East and Northern Gateway has limited Canada’s ability to access world markets and therefore, better prices for our resources. Being price takers has made us uniquely vulnerable to dramatic shifts in the oil price and what we’re seeing today will have immediate negative impacts on Canada’s economy.
The ban on oil tankers off the northwest coast, a challenging regulatory system for major projects and duplicative policy between provincial and federal jurisdictions have combined to make it harder to address these challenges. We hope that over the coming months all orders of government will work together to create a policy environment that enhances Canada’s resilience.
– Tim McMillan, President and CEO, CAPP