Canada can achieve important domestic and global benefits if it resolves today’s market access challenges, says a new report from the Canadian Association of Petroleum Producers (CAPP), called ‘Leveraging Opportunities: Diversifying Canada’s Oil and Natural Gas Markets.’
Canada has an abundance of natural resources, but it lacks in pipelines, while insufficient infrastructure is hampering the country’s ability to compete for global market share.
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As global markets for LNG are expected to increase significantly by the mid-2020s, the report notes that Canada is not moving fast enough to leverage this growing demand. Moreover, the inability to reach these high-growth markets means that Canada is missing an opportunity to help limit net global greenhouse gas emissions. Namely, coal-fired electricity generation in China, India, Southeast Asia, and Europe, could be displaced using Canadian LNG, which has lower life-cycle emissions than LNG from other countries.
What is more, Canada is also missing out on the opportunity to export responsibly produced oil to those same emerging global markets in China and India because there is not enough pipeline capacity neither access to tide water.
Now, believes that the path forward must include a clear government commitment to resource development, a competitive fiscal environment, and an efficient regulatory process to enable new projects to be approved and constructed in a timely manner.
For this reason, it suggests the Government of Canada to make meaningful and substantial changes to Bill C-69 which ‘will only compound the problems of our already protracted regulatory process’.
CAPP also called the government to withdraw Bill C-48 which proposes a tanker moratorium on a significant portion of Canada’s West Coast.
See further details on the following PDF
