Any further delays on the Trans Mountain Expansion Project will signal that Canada is closed for business, says the Canadian Association of Petroleum Producers in a statement issued on Monday in advance of the government of Canada’s expected announcement on the project on Tuesday.
The statement read:
“The Trans Mountain expansion project must be approved and its construction must begin early this summer. If the project gets stalled until after the October election, we will miss the construction season, which means at least another year of delay. Not only does this equal additional costs for the project, it further delays the thousands of jobs (Trans Mountain expansion) will create and compounds the loss of revenues, currently estimated at $80 million per day, to the Canadian economy from lack of market access. Canada cannot afford any more delays. The time to build Trans Mountain is now.
“If a decision is made to further delay the (Trans Mountain expansion), it will signal that Canada is closed for business. It poses a very serious risk to all Canadians – hindering employment, innovation and technology development.
“Canada can play a global leadership role in offering responsibly produced energy, while attracting investment, spurring innovation, creating jobs and economic benefits across the country. The Trans Mountain expansion project could be one part of a long-term solution to show investors that Canada can offer opportunities for future growth and prosperity.”
CAPP, which represents companies, large and small, that explore for, develop and produce natural gas and oil throughout Canada, cited the following in support of the pipeline project:
- According to the Fraser Institute, in 2018 the depressed prices for Canadian heavy oil resulted in $20.6 billion in foregone revenues for the Canadian energy industry, equivalent to about one per cent of Canada’s gross domestic product.
- Total capital investment in Canada’s oil and natural gas industry is forecast to fall to $37 billion in 2019, compared to $81 billion in 2014.
- Between 2014 and 2017, about 60,000 fewer people were employed in exploration and production, oil and natural gas, and oil sands construction across Canada. In 2017, nearly 530,000 Canadians were directly and indirectly employed by the oil and natural gas industry.
- The International Energy Agency, in its World Energy Outlook 2018 report, projects that in 2040 oil will comprise 27 per cent of total world energy demand, or 105 million barrels per day – representing the largest share of any fuel source.