CAPP: Trans Mountain approval marks Canada’s opportunity globally
Building a new pipeline is critical to diversify markets for Canadian oil, create stronger energy future:
The Government of Canada’s approval to build the Trans Mountain Expansion Project (TMEP) will connect the country’s abundant oil resources to new customers around the world, creating and supporting jobs for Canadians from coast to coast.
“Through West-Coast access to the Pacific Rim, Canada can grow its international trade, create more jobs and prosperity at home and grow its international reputation as a place to invest,” said Tim McMillan - president and CEO, CAPP.
Canada is a world-class producer of oil and with new investments in energy infrastructure – such as pipelines – Canada has the potential to become a world-class supplier in a globally competitive market. Today less than one per cent of Canada’s oil is exported to markets outside North America, yet world demand for oil continues to grow. Canadians have an important role to ensure their oil is developed at standards that are among the highest in producing nations – so that Canadian oil is the world’s first choice.
“The government has made the right decision for Canadian prosperity; we will take responsible steps forward to make sure the project continues successfully, said McMillan.”
Forecasted growth in Canadian production shows new major oil pipelines are urgently needed to deliver safe, secure and reliable energy to domestic and world markets. Canada’s oil pipeline network has the capacity to move 4.0 million barrels per day; last year the system moved 3.981 million barrels per day. CAPP estimates the supply of Canadian oil sands will increase by more than 850,000 by 2021, so total supply will far exceed existing pipeline capacity. Global demand for energy is forecasted to increase by 31 per cent by 2040 and demand for oil is forecasted to grow by 12 per cent. The TMEP approval is one step closer to connecting Canadian supply to new and growing markets abroad.
Canadian oil sands producers have been open to different perspectives on oil sands development and made significant investments in innovation and technology to reduce greenhouse gas emissions and limit their effect on water, land and air. Building new pipelines and leading globally on environmental and safety performance is crucial to strengthening Canada’s energy future.
“There is a balance between responsibly produced oil and meeting our climate targets, CAPP believes the two are not mutually exclusive and can be achieved as one,” said McMillan.