|By Marketwired .||
|June 17, 2014 06:44 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 06/17/14 -- The federal government's Northern Gateway oil pipeline decision is positive for Canada's oil and gas industry, British Columbians and all Canadians because the safe, responsible construction and operation of the pipeline would allow Canada to benefit economically from increased crude oil exports to growing global markets.
"The decision is another important step for Canada to access global markets and world prices, and earn full value for our oil resource," said CAPP vice-president Greg Stringham. "While more work needs to be done to achieve this goal, significant progress has been made, including work by the federal and B.C. governments and industry to ensure world-class land and marine safety systems. Today's decision, combined with these actions, supports Canadian prosperity while protecting people and the environment."
Canada's oil sands creates billions of dollars in economic activity across Canada, supports thousands of skilled jobs and helps government deliver social and other community programs through taxes and royalties. To deliver economic development, the industry relies on safe transportation of oil to markets via rail, pipelines and marine tankers.
"There has been substantial progress toward satisfying the B.C. government's five conditions for heavy oil pipelines," Stringham said. "Also, significant effort and years of work resulted in the Joint Review Panel's decision with its conditions, and have resulted in Canada upgrading its land and marine safety and spill response to a level that is world-class."
Oil sands crude oil has been transported through pipelines for more than 30 years. Diluted bitumen meets the same specifications as other heavy crude. Further diluted bitumen marine research will continue to inform emergency preparedness and response plans.
Measures announced recently by the federal government will further modernize Canada's marine navigation system, fortify emergency planning and response tools, and strengthen the polluter-pays principle. Through the International Oil Pollution Compensation Funds ($1.1 billion) and the Canada Ship-source Oil Pollution Fund ($400 million), Canada now has one of the highest liability and compensation regimes in the world.
The federal government also recently announced the creation of a major projects office in Vancouver and a federal-provincial-B.C. First Nations forum for infrastructure and resource development issues. Further consultation is needed with aboriginal groups and local communities.
New oil sands development is expected to contribute more than $2.1 trillion to the Canadian economy over the next 25 years - including about $28 billion in B.C. Last year alone, more than 370 B.C.-based organizations provided goods and services to the industry, generating over $1.1 billion in economic growth for the province.
Employment as a result of new oil sands investments is expected to grow from 75,000 jobs in 2010 to 905,000 jobs across Canada in 2035.
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 90 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 of about $110 billion a year. CAPP's vision is to enhance Canada's prosperity by enabling responsible growth of Canada's upstream oil and gas industry.
Canadian Association of Petroleum Producers