OTTAWA, Ontario, Feb. 26, 2018 (GLOBE NEWSWIRE) -- Rising government costs, the burden of inefficient regulations, and the lack of infrastructure to move Canadian energy to growing markets are all undermining investor confidence in Canada and negatively affecting the country’s ability to attract the capital needed to create jobs and national prosperity, according to A Global Vision for Canadian Oil and Natural Gas, the first in a series of economic reports to be released by the Canadian Association of Petroleum Producers (CAPP) in 2018.
Around the world capital investment in the oil and natural gas sector increased globally in 2017, but was down in Canada. Total capital spending on Canadian oil and natural gas was $45 billion in 2017, down 19 per cent from 2016 and 46 per cent from 2014. In comparison, capital spending on oil and natural gas in the United States last year increased by 38 per cent to $120 billion. It’s taken Canada 150 years to grow its oil and natural gas production to current levels and only eight years for the U.S. to accomplish the same.
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.
The International Energy Agency (IEA) forecasts that although renewable energy is on the rise, oil and natural gas will continue to make up the largest part of the total energy mix with increased urbanization and population growth, accounting for 52 per cent of the total energy demand by 2040.
This analysis leads CAPP to call on the federal government to establish a four-part vision for the oil and natural gas sector that creates jobs for Canadians and national prosperity.
A Global Vision for Canadian Oil and Natural Gas can be downloaded at www.capp.ca/economicseries
Canadian Association of Petroleum Producer quotes: Tim McMillan, president and CEO
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 $110 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.
For additional information:
Canadian Association of Petroleum Producers
(P): 403 542 4115