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]

Continuing increase in oil production strengthens Canada's position as a preferred supplier to North American, global markets

Increasing oil sands and conventional oil production continues to strengthen Canada’s position as a preferred supplier to North American and global energy markets.

CAPP’s 2013 Crude Oil Forecast, Markets and Transportation report forecasts Canadian crude oil production will more than double to 6.7 million barrels per day by 2030 from 3.2 million barrels per day in 2012. This includes oil sands production of 5.2 million barrels per day by 2030, up from 1.8 million barrels per day in 2012.

While the overall trend is similar to last year’s forecast, the notable differences include an increase in total production of 500,000 barrels per day by 2030. The increase includes incremental conventional production of 300,000 barrels per day by 2030 and oil sands production of 200,000 barrels per day by 2030. This year’s forecast also includes a progressive shift toward more supply from oil sands in situ, or drilling, production.

“Stronger performance for conventional tight oil in Canada and the United States, coupled with oil sands growth from Canada, enables greater North American energy security,” said Greg Stringham, CAPP vice-president, markets and oil sands. “It creates further opportunities to replace foreign crude oil imports in both Canada and the United States, and to increase exports to new markets beyond North America.”

Oil sands production growth reflects Canada’s supply potential and the growing international demand for oil. In 2012, 1.8 million barrels per day were produced, including 800,000 barrels per day from mining operations and one million barrels per day from in situ operations. By 2030, in situ production is forecast at 3.5 million barrels per day and mining production is forecast at 1.7 million barrels per day.

Conventional tight oil production is increasing because new technology allows industry to produce oil from formerly uneconomic resources, reversing a significant declining production trend over the last decade. Production was 1.2 million barrels per day in 2012. It is expected to rise to 1.4 million barrels per day by 2015 and remain at about that level throughout the forecast period.

Supply from the Atlantic Canada offshore is unchanged throughout the forecast period at about 200,000 thousand barrels per day.

Increasing Canadian oil supply is aimed at markets in Eastern Canada, traditional and new markets in the United States (displacing imports from less secure foreign sources) and growing markets in Asia.

“Our industry is focused on energy security and reliability, economic growth and environmental performance,” Stringham said. “We want to be the preferred supplier to a diversity of markets – the most reliable, open, transparent, responsible oil producer in the world. This will create jobs throughout Canada and provide secure and reliable supply for our customers.”

A broad range of new transportation projects, including both pipeline and rail, are being advanced to move this growing supply to markets. Timely regulatory decisions on these new infrastructure projects will enhance Canada’s international competitiveness in attracting the investment needed to support production growth and realize market opportunities, benefitting all Canadians.

The full report is available at here.

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.