Inefficient policies, lack of market access standing in way of Canada meeting global energy demand – CAPP

Canadian Association of Petroleum Producers calling on Federal govt to align environmental policies with other jurisdictions

The world’s thirst for energy is on the rise and Canada has an opportunity to meet the growing global demand for energy in an environmentally and socially responsible manner, but only with effective regulatory policies and increased market access, according to Canada’s Role in the World’s Future Energy Mix, the second in a series of economic reports released by the Canadian Association of Petroleum Producers.

“It’s time to be realistic about Canada’s future. We have an opportunity to be a global supplier but we are limiting our opportunity to meet global demand with policies that constrict future growth,” said Tim McMillan, CAPP president and CEO

The International Energy Agency’s World Energy Outlook 2017 anticipates the demand for all forms of energy – oil and natural gas as well as renewables and nuclear – will continue to increase as the global population grows to 9.2 billion by 2040.

Emerging economies and urbanization in countries such as India, China and throughout Southeast Asia, along with rising gross domestic product, will increase total energy demand by 30 per cent from today.

Although the world’s energy mix is changing, oil will continue to grow and be the predominant energy source to 2040, while natural gas production grows to become the world’s second-largest energy source overall, both essential to the development of emerging economies.

“We operate in one of the world’s most stringent regulatory environments. It’s important we have a robust regulatory framework that meets environmental goals, but we must pay attention to added costs, delays and inefficiencies so we do not risk falling behind,” said McMillan.

In 2016, the world consumed about 94 million barrels of oil per day (bpd) – or about 32 per cent of the total energy demand. By 2040, the IEA estimates total world oil consumption will be about 105 million bpd– the largest share of any fuel source.

Canada has an opportunity to become the world’s energy supplier of choice – serving global markets with responsibly produced energy that displace production from countries with poorer environmental performance, says McMillan.

Of the almost 10 billion tonnes of carbon dioxide (CO2) emitted globally from energy sources in 2015, almost half came from coal.

This can only be achieved if Canada’s oil and natural gas industry remains competitive – attracting investment, spurring innovation, and gaining access to global markets to leverage our leadership position in environmental stewardship and responsible energy production, the oil industry’s lobby group says.

CAPP wants the federal government to help define Canada’s vision for the future of oil and natural gas to meet the world’s growing energy needs:

• Collaboration between industry and government to create an effective policy and regulatory environment that encourages investment and access to world markets
• Cultivating support among Canadians for the responsible development of our natural resources
• Adopting environmental policies that compete favourably with other jurisdictions, encouraging the types of innovation and investment that grow our brand as the global energy supplier of choice

“Canada has an opportunity to ensure growing energy demand will be met by the most responsibly produced fuels possible. However, government costs and regulatory barriers are on the rise – making it harder to grow our industry and support employment for Canadians,” concluded McMillan.