The Government of Canada needs to Pause and Review its Plans for Bill C-69 in Order to get it Right for Canadians
October 15, 2018 – Calgary, Alberta
The Canadian Association of Petroleum Producers (CAPP) is asking the federal government to pause and review its plans for Bill C-69 and further consider the long-term impacts to the country and Canadians. By working collaboratively with the oil and natural gas industry and other stakeholders, the government can make the Bill what Canada needs it to be – a framework for an efficient process that maintains high environmental standards and in which Canadians and investors can be confident.
The proposed changes to the National Energy Board Act and the Canadian Environmental Assessment Act will make the regulatory process more complicated, time consuming, legally vulnerable and, ultimately, erode public and investor confidence. Bill C-69, in its current form, will be a significant barrier to future investment and put jobs at risk, from coast to coast to coast.
The federal government can now create an improved legislative framework – more concise, timely, simpler and certain – for future energy developments by:
- Providing a clear path to project approvals and construction;
- Leveraging the expertise of federal and provincial regulators;
- Establishing a framework for Bill C-69’s early planning phase;
- Removing the debate on public policy questions from project reviews; and,
- Creating a project list that clearly defines appropriate thresholds or criteria for any additions or deletions.
Canadian Association of Petroleum Producers quotes: Tim McMillan, President and CEO
- “It’s important the Government of Canada gets Bill C-69 right the first time – we can’t afford to get this wrong. Creating unnecessary barriers to investment isn’t good for anyone. The livelihoods of Canadian families and communities are at stake.”
- “Barriers to investment already exist today. Without thoughtful consideration, any changes to our regulatory system could be detrimental to the future of major projects.”
- “In order to get Bill C-69 right the first time, government needs to pause and further consider the long-term impacts of major changes to federal legislation on the Canadian economy.”
- “The Canadian oil and gas sector presents a significant opportunity for inclusive growth that provides broad benefits to Canadians and is aligned with Canada’s economic, environmental and social objectives – an opportunity that is put at risk in the event we don’t get the Bill right.”
- “Discussions between industry and government are vital and CAPP continues to engage and to provide constructive support to allow the government to make the meaningful changes needed in Bill C-69.”
- The oil and natural gas industry with its high environmental standards is important to Canada. It contributed:
- $109 billion in direct real GDP in 2017 (6.25 per cent of Canada’s total);
- $12 billion in average annual revenue to governments between 2014 and 2016;
- $3.3 billion was invested in 396 Indigenous businesses in 66 communities in 2015 and 2016;
- 533,000 direct and indirect jobs in 2017 (includes the range of 200,000 in the service
- The International Energy Agency reinforces that oil and natural gas will remain the dominant source in meeting the world’s growing energy demand into the future.
- As global energy demand increases by 2040, oil and natural gas will be the largest sources of energy with oil demand accounting for 27 per cent and natural gas accounting for 25 per cent by 2040.
- In the past two years, several projects have been stalled or derailed as a result of Canada’s complex regulatory system including Northern Gateway pipeline, Energy East pipeline, Pacific NorthWest LNG, and now, Trans Mountain.
- Canada can leverage our leadership in environmental and technological stewardship to help address growing energy needs. Canada can show the world how its oil and natural gas can lead the way.
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 $110 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.