Tanker moratorium off B.C. North Coast not needed: CAPP

For Immediate Release

Calgary, Alberta (May 15, 2017) – The Canadian Association of Petroleum Producers (CAPP) is disappointed with the Government of Canada’s introduction of Bill C-48, the proposed Oil Tanker Moratorium – designed to establish a moratorium on tanker traffic carrying crude oil and other petroleum products along British Columbia’s North Coast.

The proposed moratorium could significantly impair Canada’s oil and natural gas resources from reaching new markets and ensuring Canadians receive fair market value for its resources. Access to tidewater and the ability to export from Canada’s West Coast fulfills the government’s national commitment to get our resources to tidewater, increasing the long-term prosperity of Canadians.

Export of emerging light, tight oil resources off the West Coast could be at risk, going beyond the original intent of the federal government when it first announced the moratorium.

Canada has world-class marine safety response systems in place on both the East and West Coasts,and in the Gulf of St. Lawrence. The federal government’s commitment to its Oceans Protection Plan ensures our coastlines are protected, rendering the moratorium unnecessary.

The proposed moratorium would extend from the Canada-U.S. border at Alaska to the northern tip of Vancouver Island in B.C. It includes other related petroleum products such as partially upgraded bitumen, synthetic crude oil, fuel oils and condensate.

The Canadian Association of Petroleum Producers quotes: Tim McMillan – president and CEO

  • “Market access continues to be a significant challenge for Canada’s energy industry and the Government of Canada’s decision to introduce a moratorium on crude oil tankers off the B.C. North Coast further limits our ability to reach customers in Asia.”
  • “Canada already has world-class marine tanker safety systems in place, further strengthened by the federal government’s Oceans Protection Plan.”
  • “The federal government has not identified or provided industry with science‐based gaps in safety or environmental protection that justifies a moratorium. CAPP does not support Bill C-48.”
  • “Industry will work with government to provide scientific evidence that will lift the moratorium in a timely fashion, allowing our resources to reach new markets.”
  • “Industry will work alongside government to enhance its marine transportation system and ensure the safe transport of Canadian oil and gas to new markets in the future.”

Supporting Information

  • The moratorium poses a threat to future exports of crude oil and other petroleum products.
  • Canada has industry-leading regulations and standards that go beyond other international jurisdictions.
  • Canada boasts world-class, government-certified, industry-funded marine response organizations such as the Eastern Canada Response Corporation and the Western Canada Marine Response Corporation.
  • In 2011 about 2.2 million tonnes of oil were safely shipped from the Port of Vancouver.
  • Tankers have safely and regularly transported crude oil from Canada’s West Coast since the 1930s.
  • More than 82.5 million tonnes of various petroleum and fuel products have been shipped from 23 ports in Atlantic Canada.
  • There has not been a tanker navigational issue or incident in about 50 years from the Port of Vancouver.

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 $120 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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For additional information:

Chelsie Klassen

Canadian Association of Petroleum Producers

(P): 403-267-1151

(E): [email protected]

Northern Gateway decision supports oil market diversification

The Canadian Association of Petroleum Producers today welcomed the National Energy Board’s joint review panel decision on the Alberta-B.C. Northern Gateway oil pipeline project.

“The decision, with its outlined conditions, is an important milestone in the process to achieve market diversification for Canada’s valuable oil products,” said CAPP vice-president Greg Stringham. It states this project is in the public interest. The conditions provide a path to success.

“Addressing the NEB’s conditions, and the five conditions specified by the B.C. government, requires focus from pipeline proponents, oil producers, First Nations, all levels of government and other interested groups.

“Today’s NEB decision, combined with Doug Eyford’s recent report pertaining to First Nations and energy infrastructure projects, and reports on marine safety from the government of B.C. and Transport Canada, provides a solid foundation to advance policy and other solutions with respect to safety,environmental protection and aboriginal consultation.

“Now it’s up to governments to work with industry, First Nations and stakeholders to determine the specific integrated measures that will ensure west coast market access.”

Virtually all Canadian oil exports currently go to the United States and it is important for sellers to have access to more than one market. Given current and projected oil sands growth, CAPP supports increased access to markets in Eastern Canada, the United States and the rapidly growing markets in Asia.

Oil pipeline access to the West Coast will strengthen Canada’s ability to receive maximum value for its natural resources by connecting responsible, secure oil suppliers and energy consumers.

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 90 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 of about $100 billion a year. CAPP’s mission is to enhance the economic sustainability of the Canadian upstream petroleum industry in a safe and environmentally and socially responsible manner, through constructive engagement and communication with governments, the public and stakeholders in the communities in which we operate.

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For additional information:

Chelsie Klassen

Canadian Association of Petroleum Producers
(P): 403-267-1151
(M): 403-542-4115
(E): [email protected]

Oil producers support expanded market access for Canadian oil

The Canadian Association of Petroleum Producers today welcomed the next step towards securing National Energy Board approval for Kinder Morgan’s Trans Mountain pipeline expansion.
If approved, the project would see an additional 590,000 barrels of Western Canadian crude oil transported to refineries in Canada, the U.S. and other Pacific Rim countries.
“Bolstered market access for Canada’s energy is critical to create jobs and provide economic benefits for all Canadians,” said CAPP vice-president Greg Stringham.
Today virtually all Canadian oil exports go to the United States and it is valuable for the oil industry and governments to have access to more than one market. CAPP supports increased access to markets in Eastern Canada, the United States and the rapidly growing markets in Asia because it would help ensure Canada receives world prices for oil, a significant export commodity.
“The Trans Mountain project expands an existing pipeline that has provided needed energy to North Americans safely and securely for almost 60 years, and represents one of several transportation infrastructure projects needed to help Canadians realize full value and benefits for the resources they own,” said Stringham.
“From the production of the resource, through transportation and delivery to markets in Canada and abroad, oil producers will work collaboratively with pipeline proponents, governments and communities to ensure world-class land and marine safety standards are met.”
According to the Canadian Energy Research Institute, employment in Canada as a result of new oil sands investments alone is expected to grow from 75,000 jobs in 2010 to 905,000 jobs in 2035, with 126,000 jobs being sourced in provinces other than Alberta.
New oil sands development is expected to contribute over $2.1 trillion to the Canadian economy over the next 25 years. Conventional crude oil production is also increasing, according to the 2013 CAPP Crude Oil Forecast, positioning Canada as the preferred supplier to North American and global energy markets.
“The expectations we have of ourselves are high and so are the benefits for all Canadians as we continue to work to achieve safe access to new oil markets,” Stringham said.
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 90 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 of about $100 billion a year. CAPP’s mission is to enhance the economic sustainability of the Canadian upstream petroleum industry in a safe and environmentally and socially responsible manner, through constructive engagement and communication with governments, the public and stakeholders in the communities in which we operate.
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For additional information:
Chelsie Klassen
Canadian Association of Petroleum Producers
(P): 403-267-1151
(M): 403-542-4115
(E): [email protected]