November 29, 2016 20:10 ET
Building a new pipeline is critical to diversify markets for Canadian oil, create stronger energy future
CALGARY, ALBERTA--(Marketwired - Nov. 29, 2016) - 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.
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.
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.
Canadian Association of Petroleum Producers quotes: Tim McMillan - president and CEO, CAPP.
The federal government's announcement can be viewed here.
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 85 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 $120 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:Chelsie KlassenCanadian Association of Petroleum Producers(P): 403-267-1151(E): firstname.lastname@example.org
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