OTTAWA — The Canadian Association of Petroleum Producers (CAPP) has issued a four-part plan to boost investment in Canada’s oil and gas sector in the wake of statistics that indicate total capital spending on Canadian oil and natural gas was $45 billion in 2017, down 19 per cent from 2016.
The statistics also stated capital spending on oil and natural gas in the United States last year increased by 38 per cent to $120 billion.
The report, called A Global Vision for Canadian Oil and Natural Gas, blames rising government costs, the burden of inefficient regulations and the lack of infrastructure to move Canadian energy to growing markets for undermining investor confidence in Canada, notes a statement issued Feb. 26.
The four planks advocated by CAPP suggest:
a global connection for Canada’s oil and natural gas resources is essential;
globally competitive policies that increase the country’s ability to attract capital are needed to create jobs and national prosperity;
any climate plan must be comparable to other jurisdictions competing for the same global capital; and
government policies must spur and accelerate innovation and technology in the oil and natural gas sector.
Capital investment in Canada’s energy sector generates economic activity across the country, spurring job creation and growth for all levels of government, including about $19 billion in annual government revenues in 2015 and 533,000 jobs across the nation in 2017, notes the statement.
“Across Canada, government costs and regulatory barriers are on the rise, making it harder to grow our industry and create and support jobs for Canadians,” said Tim McMillan, CAPP president and CEO, in the statement.
“Energy jobs and investment will leave Canada for other countries unless there are changes to encourage growth the industry can build on.”
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