Energy 101

Economic Report | Part 5: Leveraging Opportunities, Diversifying Canada's Oil and Natural Gas Markets

CAPP’s Vision for the Future of Canada’s Oil and Natural Gas Industry

For more than 150 years, Canada’s oil and natural gas industry has been a reliable and affordable supplier of energy for all Canadians, and has improved the future of our nation. From spurring economic growth to developing major nation-building energy projects, our country’s energy sector is woven into the fabric of our nation, and is as much a part of Canada as the maple leaf.

The Canadian Association of Petroleum Producers (CAPP) represents an energy industry that is looking to the future – one that values sustainable development practices and lower-carbon processes. With a growing world where many emerging economies need a variety of energy products, we want to help create a vision for Canada’s oil and natural gas industry that recognizes the significant role our resources play in the world’s future energy mix.

Canada has taken a leadership role in becoming one of the world’s most responsible oil and natural gas producers, recognizing resource development needs to be done in a responsible manner. The onus is on all Canadians to ensure we remain the world’s energy supplier of choice.

Our joint vision for the future needs to look at the big picture – a global view of the long term that includes access to world markets, effective regulatory outcomes, commitments to innovation, global climate leadership, and enabling a strong, reliable and dynamic fiscal framework.

We need collaboration between industry and all levels of government to rebalance the playing field and restore our country’s competitiveness to benefit all Canadians, not just the oil and natural gas industry. We can satisfy the world’s demand for energy but to do so we need to work collectively to create an ambitious plan for the future.

Together we can provide the world with the energy of tomorrow.

Sincerely,

Tim McMillan

President and CEO, Canadian Association of Petroleum Producers



About the Author

The Canadian Association of Petroleum Producers (CAPP) is the voice of Canada's upstream oil and natural gas industry. We enable the responsible growth of our industry and advocate for economic competitiveness and safe, environmentally and socially responsible performance.

Lougheed Challenges the 'Eastern Bastards' and National Energy Program

In 1971, Peter Lougheed became the Progressive Conservative Premier of Alberta. A moderate by international standards, Lougheed enraged petroleum producers by retroactively changing the royalty maximums written into long-term petroleum leases, causing a sense of betrayal in the oil patch. The Seven Sisters had been generous to Alberta, which had been one of the poorest provinces in the country before the oil boom, but the electorate supported Lougheed’s move.

A month before the Yom Kippur war broke out in November 1973, Ottawa had announced that it would finally extend the Alberta-Ontario pipeline into Quebec, which in 1961 had refused western oil because foreign imports were slightly cheaper and the security of supply seemed irrelevant due to the international oil glut. Now, amid rising prices and market uncertainty, Ottawa asked Alberta producers to voluntarily freeze their domestic price until the end of January. Insult was added to injury two weeks later when the federal Energy Minister Donald Macdonald imposed a 40-cents-per-barrel export tax on crude oil.

The rush of petroleum discoveries in the western provinces through the late 1940s and 1950s were developed in the teeth of persistently low prices. Even so, Quebec refused to buy Canadian oil because offshore supplies were slightly cheaper. The federal government’s provocation aimed to raise money so Ottawa could continue to subsidize increasingly expensive foreign crude to Quebec and the other eastern provinces. Also suspected was to deter exports so domestic supply would be kept artificially high and prices artificially low.

The federal taxation on provincially owned resources was an unprecedented attack and exacerbated inter-provincial tension created by Ottawa, being antagonistic toward the western provinces since Confederation. With an upcoming election, and the Liberal government in a minority position, the goal of the deliberate confrontation with Alberta was to earn votes and popularity in their eastern stronghold. With the Arab embargo in place, Macdonald then raised the export tax fivefold to $1.90 per barrel, costing western producers $1 billion annually.  

The angry Ottawa-Alberta confrontation spawned the widely posted bumper sticker with the slogan, “Let Those Eastern Bastards Freeze in the Dark”.

In the seven years between 1973 and 1980, Alberta’s Oil Boom brought incredible wealth to the once-destitute province, the oil patch headquarters in Calgary, their employees, and the economy beyond the petroleum industry itself. The cradle of the Oil Boom was the repository of petroleum that geologists called the Western Canadian Sedimentary Basin, which stretched from the 49th parallel northward on a swath from central Manitoba to northeast British Columbia, to the Beaufort Sea and the Arctic Islands.

The men who managed it were the first generation of postwar, post-Leduc boom professional leadership. Having successfully explored the Basin in the 1950s and 1960s, they knew the sweat and grit of the fieldwork first-hand. They had drilled wells and laid pipelines before graduating to the executive suites in which they recreated the Alberta economy, building a foundation of prosperity of future generations. Before OPEC started ratcheting up oil prices, Alberta was poised for a decade of exceptional growth, with a new energy and confidence in the Canadian oil industry and among the 250 independent explorers and producers. The boom was executed by this group of entrepreneurs who blended roughneck aggressiveness with the practical creativity of western farmers. The oil boom was directly and indirectly responsible for the creation of tens of thousands of jobs in Alberta during the 1970s. At the drilling rigs, it was filthy, back-breaking, dangerous work and the rig was run like a military bootcamp. Young men came of age making lots of money while the work tested their strength and character.

Lougheed inherited his opinion that the first step to a diversified Alberta economy was the production of oil and gas processed at home from his grandfather, Senator Sir James Lougheed, who had invested profitably in Alberta’s first commercial oil discovery at Turner Valley in 1914. Lougheed had a circle of Canadian oilmen with whom he conferred, but even as producers applauded his toughness with the federal government, they took issue with his interventionist mindset and eagerness to tinker with the royalty regime. That said, criticism from outsiders was not welcomed: “He may be a son of a bitch, but he’s our son of a bitch,” one influential executive told the national newspaper Globe and Mail.

At the closing of the fall session of the Legislature in 1978, Lougheed said he was now convinced that Ottawa, backed by a few other provinces, might try to take over Alberta’s energy resources in the name of national interest. Liberal Prime Minister Pierre Trudeau called the long-awaited federal election on May 22, 1979 and campaigned primarily on his plans to patriate the constitution and his government’s economic record – a shaky platform. The public didn’t share Trudeau’s grand constitutional vision and the country suffered from a sluggish economy, double-digit unemployment, rising government debt, and a slumping dollar. On election day, the Conservatives formed a minority government. However, by 1980 the Liberals were back in government with a majority and zeroed in on Alberta to turn around Ottawa’s deteriorating finances.

On October 21, 1980 federal Finance Minister Allen MacEachen and Energy Minister Marc Lalonde of the Liberal government unveiled the government’s National Energy Program (NEP). The Prime Minister hoped to treat Ottawa’s increasing deficit problems with an extra injection of oil money from Alberta, which was already contributing a healthy amount to federal coffers, and he was determined to make his mark on history by patriating the constitution. To achieve these aims, he needed concessions from Lougheed on energy revenue and provincial rights – concessions the Premier was unwilling to make. His government reflected Albertans’ firm belief that they deserved their hard-earned profits as well as a larger voice in national affairs. Therefore, Alberta found itself in direct conflict with Trudeau’s vision of Canada as a nation of two founding peoples held together by an all-powerful central government. Lalonde said it was time for Ottawa to “seize control” of Canada’s energy resources in the name of “fairness to all Canadians.

The Alberta government’s response to the NEP was immediate and decisive; 48 hours after it was unveiled, Lougheed went on province-wide television to inform Albertans that “the Ottawa government has, without negotiation, without agreement, simply walked into our home and occupied the living room.” The federal budget and energy measures were more than just another round of simmering energy conflict between Ottawa and Alberta, explained Lougheed, “they are an outright attempt to take over the resources of this province, owned by each of you as Albertans.” He warned that the federal program directly threatened the constitutional rights of ordinary Albertans.

The Premier fought back hard with high-risk decisions. He announced that over the next nine months, beginning March 1, the province would reduce its oil output by 15 percent. Shipments of oil to the rest of Canada would be cut by 180,000 barrels per day, and $16 billion earmarked for the oil sands and heavy oil development would be re-evaluated and possibly shelved. Alberta would launch a legal challenge to the new export tax on natural gas. After eighteen months and the third round of output cutbacks, Lougheed and Trudeau signed a five-year energy pricing agreement on September 1, 1981, which was not well-received by industry.

By this time, there was a high surplus of crude oil in the international markets caused by falling demand following the 1970s energy crisis and 1980 marked a six-year decline in the price of oil, which reduced the price by half in 1986 alone. Additionally, a severe global economic recession across the developed world that began in the late 1970s left high unemployment until at least 1985 and Canada experienced high inflation at an average of 12 percent, and high interest rates, with the Bank of Canada’s rate hitting 21 percent in August 1981. The Alberta government had wanted to avoid a protracted war with Ottawa and the severity of the province’s response to the NEP was calculated to force the federal government to the table, and it worked. In less than twelve months there was a new deal and Alberta shelved the threatened production cuts.

Throughout the 1970s and early 1980s the notion that Albertans were obliged to share their “windfall” resource wealth was the keystone of federal Liberal policy towards the province. Implicit in this argument was the suggestion that Albertans were not sharing their good fortune with the rest of the country, and were, therefore, greedy and un-Canadian. In reality, the federal government confiscated $139 billion in net transfers between 1961 and 1992 from Alberta to the country’s ‘have-not provinces’, specifically Quebec, Ontario, and the Atlantic provinces. By 1985, the NEP and its related tax policies had resulted in this net transfer of wealth from the producing provinces, where 90 percent of this had been taken from Alberta. Th assessment and figures, determined by economist Robert Mansell from the University of Calgary, indicated that Alberta had been subjected to the largest per capita transfer of wealth ever recorded in a democratic nation.

In a 2001 interview, Lougheed reflected that the West had turned against Trudeau after 1968 for three reasons. First, he suffered from a “lack of knowledge” of western issues. Second, his policies catered to his political base in Quebec and Ontario. Finally, “more than anything”, he came across as someone who
thinks he knows it all” and westerners found this offensive. Lougheed said the relationship with Ottawa always seemed to come down to a desire to “control” Alberta: “They see us as being able, physically, to be independent and that means we would have influence with other provinces. When I look back on the Heritage Fund and the Canadian Investment Division, we just thought we should be participating in the Canadian mosaic. But actually … lending money to Nova Scotia and Newfoundland just drove the federal bureaucrats wild. It shook the foundations of their position. We probably, in hindsight, shouldn’t have done that … [but] we though we were expressing our patriotism.


Source: Alberta in the Twentieth Century, Volume Eleven, Lougheed and the War with Ottawa; CanMedia Inc.

Birth of the Global Oil and Gas Industry and OPEC

In August 1859, former railway conductor Edwin Drake struck oil at 69 feet after piecing together the world’s first oil well drilling rig – powered by a steam engine – in Titusville, Pennsylvania, USA - population 125. Within fifteen months, 75 wells were producing there and when these original reserves ran out, exploration shifted to other sources in the hills of northwestern Pennsylvania by more than 16,000 drillers over the next decade.

With uneven success in these early days, the price of oil fluctuated wildly between 50 cents and $10 a barrel. Since the major oil product in those days was kerosene, used for lighting lamps, a tug-of-war between drillers and refineries began, where drillers kept oil supplies and prices in flux due to the uncertain nature of exploration, but the manufacturing operations of refineries benefited from a steady flow of low-priced crude.

John D. Rockefeller, a trader from Cleveland, started in oil refining when a rail line linked his Ohio hometown with western Pennsylvania. By the late 1860s, the industry was in a glut, with far more oil and perhaps three times as much refining capacity as the market needed. Rockefeller came up with a legal plan to restore order by uniting the entire American refining industry at a time when there was an abundance of local competitors in the United States, making anti-trust laws unnecessary.

He started Standard Oil and persuaded many rivals to contribute their refineries in exchange for a stake in the publicly traded company. Holdouts found themselves facing brutal competition in their regional markets, often from firms that appeared to be independent but actually belonged to Standard, and few rebels survived. As its muscle strengthened, Standard secretly negotiated lower freight rates with the railways and, in a brazen demonstration of monopoly power, charged them a kickback fee for every barrel of crude shipped by its competitors. 

Crude oil was initially shipped in whiskey barrels, which became the industry’s standard measure of volume. At times, a wooden barrel cost more than the oil it contained.

In a desperate move to break the Standard stranglehold on refining and transportation, petroleum producers united behind a daring scheme to construct a long distance pipeline in 1879, but Rockefeller swiftly outdid them by building his own pipelines. It was the last domestic challenge to Standard’s dominance in the American and Canadian markets. In 1880, sixteen Ontario refiners had united as Imperial Oil, which would remain Canada’s largest petroleum company, but the province’s oil production base was weak and in 1896 Standard bought control of Imperial. In the late 1880s, as Pennsylvania’s reserves dwindled, an oil rush began in Ohio and Indiana and the price of oil plummeted to 15 cents a barrel. In response to the glut, Rockefeller decided Standard should acquire its own oil fields and soon controlled reserves that fed his expanding network of refineries. As the twentieth century began, what was previously almost worthless gasoline, a by-product of kerosene production, started to beat out electricity and steam as fuel for the newly invented automobile.

In 1892, Ida Tarbell, the daughter of a Titusville oilfield equipment manufacturer, wrote a 24-part expose for McClure’s magazine, outlining Standard’s dealings that included espionage against competitors and systemic bribes to politicians. Her anti-monopoly advocacy impressed President Theodore Roosevelt, who was elected in 1901 and utilized the 1890 Sherman Act to launch 45 actions against railways, tobacco, beef, steel, and other industries. Roosevelt said the directors of Standard were criminals and a government lawsuit that lasted from 1906 to 1911 found Standard guilty of restraining trade, ordering the company to dissolve. Standard was carved up into 38 companies, divided along geographical lines, including Standard Oil (later renamed Exxon) in New Jersey, which became the largest oil company in the world, Socal (Standard Oil of California), Standard of New York (Mobil), Gulf Oil (Texas) and Texaco (Texas). The five majors faced two foreign rivals of their stature: Royal Dutch/Shell and British Petroleum.

As gasoline-powered automobiles proliferated the globe, especially North America, these majors – who became known as the Seven Sisters – sought to control the largest possible portion of the cash flow. The corporate ideal within the oil patch became ownership of the entire chain of petroleum operations from wellhead to gas pump, of a vertically integrated system run by self-capitalizing firms. Exxon and Shell, though strongest in the retail market, were weakest at producing crude and therefore expanded overseas into countries such as Saudi Arabia and Venezuela, becoming the first multinational corporations.

As a result, the world’s first oil cartel took shape in the Middle East. In the 1920s, Shell, BP, Exxon, and Mobil divided up Iraq and in 1934 Gulf and BP signed an exclusive production deal with Kuwait, a tiny country whose largest economic asset was a small wooden fishing fleet. That same year, the additional Sisters from the United States moved into Saudi Arabia, a country of which its entire treasury could then fit into a camel’s saddlebag, and King Ibn Saud was desperate for cash to keep his two-year-old country together. An alliance of Socal and Texaco came up with a short-term payment of USD $275,000 in gold plus USD $25,000 per year in exchange for 60-year leases of lands which proved more prolific than the entire United States. To ensure access to markets, the first two Sisters later cut Exxon and Mobil into the Saudi deal.

In 1928, Exxon, Shell, and BP had held secret meetings to deal with the threat posed to their European markets by cheap crude from Communist Russia and this private volume and price fixing soon expanded worldwide. For decades, the Sisters agreed to sell oil to countries overseas at a price competitive with the cost of Texas crude if it were shipped into that market. The arrangement meant lavish profit margins for majors producing in the Middle East, since oil there was much cheaper to pump and transport to Europe and Asia.

By negotiating with each other, the Sisters determined which countries would produce how much oil at what price for consumers. Major industrial powers in Europe and Asia, provided with oil at a price that permitted excellent rates of economic expansion, did not interfere. The United States accepted the practice, which ensured that domestic production was not affected by a flood of cheaper oil from Venezuela and the Middle East. American governments realized that oil was a strategic commodity and that security of supply was more important than low prices. Inevitably, the producing countries resented the lavish profits earned by the companies, despite themselves not having the technological ability and market power.

This frustration came to a head in 1938, when Mexican workers went on strike and the Mexican government ordered the employers to meet their demands. When they refused, President Lazaro Cardenas nationalized the industry. American, British, and Dutch companies boycotted the new state-owned company, Petroleos Mexicanos, shutting its production out of their refineries and markets. Although some Mexican oil found its way to market after the Second World War began, it was no match for the flood the majors were pumping out of Venezuela, which, by 1946, was the world’s largest producer aside from the United States.

Venezuela, aware that its reserves were limited compared to the Middle East, took advantage of its temporary pre-eminence in production. In 1948, the country successfully insisted that petroleum profits be split 50-50 between producing companies and the government. Within two years, Saudi Arabia won the same deal. When BP refused to compromise in Iran, Prime Minister Mohammed Mossadeq nationalized the country’s oil fields in 1951. Iranian oil then vanished from the market and reappeared without a ripple in oil prices since the world was still awash in crude.

Advocates from producing states, who wanted higher oil prices and a larger percentage of oil revenue, realized that the Seven Sisters were financing their empires of refineries, pipelines, and tankers entirely from huge internal profits. They saw the opportunity to exploit the geographical concentration of the world’s oil exports from Venezuela, Saudi Arabia, Iran, Iraq, and Kuwait, which accounted for 80 percent of the world’s oil exports by the end of the 1950s. Venezuela urged the others to create a producer cartel to mirror that of the Sisters, arguing they could achieve higher revenues by using quotas to match their oil output to world demand.

In 1960, Exxon, followed by the other majors, unilaterally imposed a stiff oil price-cut without consulting exporting nations. Infuriated, the five largest producers formed the Organization of Petroleum Exporting Nations (OPEC) in response, which initially had little impact due to the ongoing surplus of crude oil.

Aside from Communist nations, total oil consumption tripled from 15 million barrels a day in 1955 to 45 million by the end of 1973. Oil and natural gas rose from 38 percent of total world energy consumption in 1950 to about two-thirds in the 1970s, replacing coal. American petroleum production peaked and then entered an irreversible decline by 1970, though still demand grew.

The Seven Sisters lost their grip over the world market starting with Libya. Oil began flowing in the country in the early 1960s, accounting for 25 percent of western Europe’s supply by 1969 – the year corrupt King Idris was replaced by Colonel Muammar al-Qaddafi through as military coup. The Libyans had been careful to ensure that half of their oil was produced by independents rather than the majors. In 1970, the new dictator’s regime threatened to bankrupt Occidental, an independent, by curbing its allowable production. Desperate for oil, Occidental founder Armand Hammer agreed to higher prices and a more generous share of oil revenue for the Libyan government. Other producers in Libya, including the majors, subsequently caved in to the new financial terms as well, at which point the Middle Eastern countries demanded and obtained better contacts that included higher oil prices. Libya in turn demanded even more, and these tactics succeeded because the demand for oil had outstripped supply. Even Texas, which was North America’s primary source, could no longer supply allies so even the United States became dependent on OPEC crude. OPEC’s producers, including Libya, Algeria, and Iraq, began nationalizing their oilfields and Saudi Arabia acquired majority ownership in Aramco, the Sister’s producing consortium in the country.

Then the Egyptian and Syrian armies launched a surprise attack against Israel on October 6, 1973 – the Jewish holy day of Yom Kippur. Anti-American sentiment grew when the United States provided resupply of war materiel to Israel to counter the Soviets doing the same for its Egyptian and Syrian allies. The new OPEC cartel seized control of world oil pricing from western companies to bring pressure against Israel. Arab producers choked the flow of oil to industrialized nations and petroleum prices skyrocketed. Though Egypt and Israel stopped fighting after three weeks, the Arab oil embargo lasted until March 1974.


Source: Alberta in the Twentieth Century, Volume Eleven, Lougheed and the War with Ottawa; CanMedia Inc.

Canada's Oil Sands | Part 4: Environment and the Facts

The future of Canada’s oil sands industry is changing – and we are excited about it. Like the entrepreneurs who established our industry and helped fuel our world over the past 100 years, we share Canadian values and have built our industry focused on solutions and continuous improvement.

We are going to be using oil for a long time to come – both in Canada and around the world. Canada has a tremendous resource base combined with a stable political environment and skilled people that make it the ideal place to develop our natural resources responsibly.

We know we have an impact on the planet. Just as we are committed to growing our businesses, we are equally committed to improving our environmental performance. We collaborate on our biggest environmental challenges, and develop technologies that lessen our impact on air, land and water, and provide benefits for our country.

We know that our innovation and technological advances will help Canada achieve its global environmental commitments and move towards a cleaner energy future. We know it, because we are working on tomorrow’s energy, today.

So, when it comes to helping the globe meet the need for increasing demands for energy – all forms of energy – we believe the world needs more Canada.



About the Author

The Canadian Association of Petroleum Producers (CAPP) is the voice of Canada's upstream oil and natural gas industry. We enable the responsible growth of our industry and advocate for economic competitiveness and safe, environmentally and socially responsible performance.


If you enjoyed this article, please consider becoming a patron of The Visionable


Economic Report | Part 4: Toward a Shared Future, Canada's Indigenous Peoples and the Oil and Natural Gas Industry

CAPP’s Vision for the Future of Canada’s Oil and Natural Gas Industry

For more than 150 years, Canada’s oil and natural gas industry has been a reliable and affordable supplier of energy for all Canadians, and has improved the future of our nation. From spurring economic growth to developing major nation-building energy projects, our country’s energy sector is woven into the fabric of our nation, and is as much a part of Canada as the maple leaf.

The Canadian Association of Petroleum Producers (CAPP) represents an energy industry that is looking to the future – one that values sustainable development practices and lower-carbon processes. With a growing world where many emerging economies need a variety of energy products, we want to help create a vision for Canada’s oil and natural gas industry that recognizes the significant role our resources play in the world’s future energy mix.

Canada has taken a leadership role in becoming one of the world’s most responsible oil and natural gas producers, recognizing resource development needs to be done in a responsible manner. The onus is on all Canadians to ensure we remain the world’s energy supplier of choice.

Our joint vision for the future needs to look at the big picture – a global view of the long term that includes access to world markets, effective regulatory outcomes, commitments to innovation, global climate leadership, and enabling a strong, reliable and dynamic fiscal framework.

We need collaboration between industry and all levels of government to rebalance the playing field and restore our country’s competitiveness to benefit all Canadians, not just the oil and natural gas industry. We can satisfy the world’s demand for energy but to do so we need to work collectively to create an ambitious plan for the future.

Together we can provide the world with the energy of tomorrow.

Sincerely,

Tim McMillan

President and CEO, Canadian Association of Petroleum Producers



About the Author

The Canadian Association of Petroleum Producers (CAPP) is the voice of Canada's upstream oil and natural gas industry. We enable the responsible growth of our industry and advocate for economic competitiveness and safe, environmentally and socially responsible performance.


If you enjoyed this article, please consider becoming a patron of The Visionable


Canada's Oil Sands | Part 3: Transporation and Economy

The future of Canada’s oil sands industry is changing – and we are excited about it. Like the entrepreneurs who established our industry and helped fuel our world over the past 100 years, we share Canadian values and have built our industry focused on solutions and continuous improvement.

We are going to be using oil for a long time to come – both in Canada and around the world. Canada has a tremendous resource base combined with a stable political environment and skilled people that make it the ideal place to develop our natural resources responsibly.

We know we have an impact on the planet. Just as we are committed to growing our businesses, we are equally committed to improving our environmental performance. We collaborate on our biggest environmental challenges, and develop technologies that lessen our impact on air, land and water, and provide benefits for our country.

We know that our innovation and technological advances will help Canada achieve its global environmental commitments and move towards a cleaner energy future. We know it, because we are working on tomorrow’s energy, today.

So, when it comes to helping the globe meet the need for increasing demands for energy – all forms of energy – we believe the world needs more Canada.



About the Author

The Canadian Association of Petroleum Producers (CAPP) is the voice of Canada's upstream oil and natural gas industry. We enable the responsible growth of our industry and advocate for economic competitiveness and safe, environmentally and socially responsible performance.


If you enjoyed this article, please consider becoming a patron of The Visionable


Economic Report | Part 3: Competitive Climate Policy, Supporting Investment and Innovation

CAPP’s Vision for the Future of Canada’s Oil and Natural Gas Industry

For more than 150 years, Canada’s oil and natural gas industry has been a reliable and affordable supplier of energy for all Canadians, and has improved the future of our nation. From spurring economic growth to developing major nation-building energy projects, our country’s energy sector is woven into the fabric of our nation, and is as much a part of Canada as the maple leaf.

The Canadian Association of Petroleum Producers (CAPP) represents an energy industry that is looking to the future – one that values sustainable development practices and lower-carbon processes. With a growing world where many emerging economies need a variety of energy products, we want to help create a vision for Canada’s oil and natural gas industry that recognizes the significant role our resources play in the world’s future energy mix.

Canada has taken a leadership role in becoming one of the world’s most responsible oil and natural gas producers, recognizing resource development needs to be done in a responsible manner. The onus is on all Canadians to ensure we remain the world’s energy supplier of choice.

Our joint vision for the future needs to look at the big picture – a global view of the long term that includes access to world markets, effective regulatory outcomes, commitments to innovation, global climate leadership, and enabling a strong, reliable and dynamic fiscal framework.

We need collaboration between industry and all levels of government to rebalance the playing field and restore our country’s competitiveness to benefit all Canadians, not just the oil and natural gas industry. We can satisfy the world’s demand for energy but to do so we need to work collectively to create an ambitious plan for the future.

Together we can provide the world with the energy of tomorrow.

Sincerely,

Tim McMillan

President and CEO, Canadian Association of Petroleum Producers



About the Author

The Canadian Association of Petroleum Producers (CAPP) is the voice of Canada's upstream oil and natural gas industry. We enable the responsible growth of our industry and advocate for economic competitiveness and safe, environmentally and socially responsible performance.


If you enjoyed this article, please consider becoming a patron of The Visionable


Canada's Oil Sands | Part 2: Uses and Resources

The future of Canada’s oil sands industry is changing – and we are excited about it. Like the entrepreneurs who established our industry and helped fuel our world over the past 100 years, we share Canadian values and have built our industry focused on solutions and continuous improvement.

We are going to be using oil for a long time to come – both in Canada and around the world. Canada has a tremendous resource base combined with a stable political environment and skilled people that make it the ideal place to develop our natural resources responsibly.

We know we have an impact on the planet. Just as we are committed to growing our businesses, we are equally committed to improving our environmental performance. We collaborate on our biggest environmental challenges, and develop technologies that lessen our impact on air, land and water, and provide benefits for our country.

We know that our innovation and technological advances will help Canada achieve its global environmental commitments and move towards a cleaner energy future. We know it, because we are working on tomorrow’s energy, today.

So, when it comes to helping the globe meet the need for increasing demands for energy – all forms of energy – we believe the world needs more Canada.



About the Author

The Canadian Association of Petroleum Producers (CAPP) is the voice of Canada's upstream oil and natural gas industry. We enable the responsible growth of our industry and advocate for economic competitiveness and safe, environmentally and socially responsible performance.


If you enjoyed this article, please consider becoming a patron of The Visionable


Economic Report | Part 2: Canada's Role in the World's Future Energy Mix

CAPP’s Vision for the Future of Canada’s Oil and Natural Gas Industry

For more than 150 years, Canada’s oil and natural gas industry has been a reliable and affordable supplier of energy for all Canadians, and has improved the future of our nation. From spurring economic growth to developing major nation-building energy projects, our country’s energy sector is woven into the fabric of our nation, and is as much a part of Canada as the maple leaf.

The Canadian Association of Petroleum Producers (CAPP) represents an energy industry that is looking to the future – one that values sustainable development practices and lower-carbon processes. With a growing world where many emerging economies need a variety of energy products, we want to help create a vision for Canada’s oil and natural gas industry that recognizes the significant role our resources play in the world’s future energy mix.

Canada has taken a leadership role in becoming one of the world’s most responsible oil and natural gas producers, recognizing resource development needs to be done in a responsible manner. The onus is on all Canadians to ensure we remain the world’s energy supplier of choice.

Our joint vision for the future needs to look at the big picture – a global view of the long term that includes access to world markets, effective regulatory outcomes, commitments to innovation, global climate leadership, and enabling a strong, reliable and dynamic fiscal framework.

We need collaboration between industry and all levels of government to rebalance the playing field and restore our country’s competitiveness to benefit all Canadians, not just the oil and natural gas industry. We can satisfy the world’s demand for energy but to do so we need to work collectively to create an ambitious plan for the future.

Together we can provide the world with the energy of tomorrow.

Sincerely,

Tim McMillan

President and CEO, Canadian Association of Petroleum Producers



About the Author

The Canadian Association of Petroleum Producers (CAPP) is the voice of Canada's upstream oil and natural gas industry. We enable the responsible growth of our industry and advocate for economic competitiveness and safe, environmentally and socially responsible performance.


If you enjoyed this article, please consider becoming a patron of The Visionable


Economic Report | Part 1: A Global Vision for the Future of Canadian Oil and Natural Gas

CAPP’s Vision for the Future of Canada’s Oil and Natural Gas Industry

For more than 150 years, Canada’s oil and natural gas industry has been a reliable and affordable supplier of energy for all Canadians, and has improved the future of our nation. From spurring economic growth to developing major nation-building energy projects, our country’s energy sector is woven into the fabric of our nation, and is as much a part of Canada as the maple leaf.

The Canadian Association of Petroleum Producers (CAPP) represents an energy industry that is looking to the future – one that values sustainable development practices and lower-carbon processes. With a growing world where many emerging economies need a variety of energy products, we want to help create a vision for Canada’s oil and natural gas industry that recognizes the significant role our resources play in the world’s future energy mix.

Canada has taken a leadership role in becoming one of the world’s most responsible oil and natural gas producers, recognizing resource development needs to be done in a responsible manner. The onus is on all Canadians to ensure we remain the world’s energy supplier of choice.

Our joint vision for the future needs to look at the big picture – a global view of the long term that includes access to world markets, effective regulatory outcomes, commitments to innovation, global climate leadership, and enabling a strong, reliable and dynamic fiscal framework.

We need collaboration between industry and all levels of government to rebalance the playing field and restore our country’s competitiveness to benefit all Canadians, not just the oil and natural gas industry. We can satisfy the world’s demand for energy but to do so we need to work collectively to create an ambitious plan for the future.

Together we can provide the world with the energy of tomorrow.

Sincerely,

Tim McMillan

President and CEO, Canadian Association of Petroleum Producers



About the Author

The Canadian Association of Petroleum Producers (CAPP) is the voice of Canada's upstream oil and natural gas industry. We enable the responsible growth of our industry and advocate for economic competitiveness and safe, environmentally and socially responsible performance.


If you enjoyed this article, please consider becoming a patron of The Visionable


Canada's Oil Sands | Part 1: Our Energy Future

The future of Canada’s oil sands industry is changing – and we are excited about it. Like the entrepreneurs who established our industry and helped fuel our world over the past 100 years, we share Canadian values and have built our industry focused on solutions and continuous improvement.

We are going to be using oil for a long time to come – both in Canada and around the world. Canada has a tremendous resource base combined with a stable political environment and skilled people that make it the ideal place to develop our natural resources responsibly.

We know we have an impact on the planet. Just as we are committed to growing our businesses, we are equally committed to improving our environmental performance. We collaborate on our biggest environmental challenges, and develop technologies that lessen our impact on air, land and water, and provide benefits for our country.

We know that our innovation and technological advances will help Canada achieve its global environmental commitments and move towards a cleaner energy future. We know it, because we are working on tomorrow’s energy, today.

So, when it comes to helping the globe meet the need for increasing demands for energy – all forms of energy – we believe the world needs more Canada.


About the Author

The Canadian Association of Petroleum Producers (CAPP) is the voice of Canada's upstream oil and natural gas industry. We enable the responsible growth of our industry and advocate for economic competitiveness and safe, environmentally and socially responsible performance.


If you enjoyed this article, please consider becoming a patron of The Visionable