CALGARY – Business – The Canadian Association of Petroleum Producers (CAPP) projects healthy growth for the Canadian oil and natural gas industry with capital expenditures expected to reach $40.6 billion in 2024. This represents a slight increase from the $39 billion invested in 2023.
Cautious Optimism and Disciplined Approach
“Upstream oil and natural gas producers are staying disciplined, with capital expendituresexpected to remain stable in 2024,” says Lisa Baiton, CAPP President & CEO. “There is room for cautious optimism with current Canadian oil production at record levels in anticipation of the Trans Mountain expansion completion in the second quarter. We are also moving closer to seeing the completion of Canada’s first globally significant liquefied natural gas export facility in British Columbia, expected in 2025.”
Investment Decisions and Emissions Policy
Baiton cautions that uncertainty around proposed emissions policy remains a significant factor in driving investment decisions for the industry.
Despite this uncertainty, CAPP highlights the recent disciplined business approach and modest production growth yielding strong returns for Canada. In 2023 the industry contributed $111 billion in gross domestic product (GDP) and $45 billion in revenues to municipal, provincial, and federal governments.
Economic Impact and Emissions Reductions
“Energy production and export is the backbone of the Canadian economy,” says Lisa Baiton. CAPP reports that hundreds of thousands of Canadians rely on the industry for work, including many within Indigenous-owned businesses.
CAPP also emphasizes that the oil and natural gas industry is a significant investor in emissions reduction technologies. Emissions from oil and natural gas production in Canada peaked in 2015, with the conventional upstream sector achieving a 24% reduction in CO2 equivalent emissions from 2012 to 2021. Furthermore, the industry is on track to exceed the current federal government’s methane reduction targets.
