Oil & Gas Product News Logo

CAPP slams federal government for rejecting Senate amendments to Bill C-69

CAPP president and CEO Tim McMillan.
CAPP president and CEO Tim McMillan.

Company info

2100, 350 - 7 Avenue SW
Calgary, AB
CA, T2P 3N9

Website:
capp.ca

Read more

It is now clear the federal government is ignoring the Senate and the will of Canadians, damaging the country's economic future by not accepting the package of amendments the Senate proposed to Bill C-69, the Impact Assessment Act, according to the Canadian Association of Petroleum Producers (CAPP)

The amendments to Bill C-69 were developed after the biggest cross-country legislative consultation process ever held. The Government of Canada has rejected amendments that would have made this bill workable. Energy produced the Canadian way is world class. We expect rigorous regulation and oversight. But when projects meet all reasonable regulatory requirements, proponents, and their investors need a level of certainty that those projects can be built. 

"The impacts of a flawed Bill C-69 go well beyond hurting Canada's oil and natural gas industry. Every Canadian will be hurt by driving investment out of the country and preventing important nation-building projects from being developed," said Tim McMillan, president and CEO of CAPP. "The federal government has offered Canadians a false choice between growing the economy and protecting the environment. We can do both. The Senate amended Bill C-69 is a workable solution that provides the clarity industry needs to start investing in Canada again."

In order to attract investment into Canada's economy and create jobs, CAPP has asked for a regulatory system that provides clarity and transparency through the decision-making process. Simply put, the industry asked that the rules be determined before project proponents start the process. Instead, Bill C-69 creates a system that allows for indefinite project delays and the continued stagnation of major projects which will drive even more investment out of Canada. 

Some of the critical issues with Bill C-69 as currently proposed by the federal government are: 
Loss of local voices - Stakeholders and local communities directly impacted by a project will not be given greater consideration in the project review process. This means funded activists living in New York City will have the ability to drown out the voices of Canadians living next door to development. 
Jobs are not important - Economic benefits for Canadians, such as job creation and increased investment in our nation, are not considered an important factor in project reviews. The government does not want to consider potential economic and social effects to determine if a project is in the public interest. 
Project reviews are not the right forum for policy debates - Bill C-69 allows for debates on public policy which should be determined in other forums. The oil and natural gas industry fully accepts following established policies around climate change and the intersection of sex and gender, but ask they be developed outside of the project review process. In addition, it's a waste of stakeholders' time and proponent resources to be required to consider alternatives to a project, even when those alternatives are outside of their own industry. For example, a pipeline project group should not have to debate the merits of a wind farm or mine in their proposal. 
No hard cap on timelines - Industry asked for a limit on project review timelines so companies can gain clarity on when they will proceed to approval or rejection. When proponents consider investing billions of dollars in a country on a project that will operate for decades, it's reasonable to ask for the government to commit to a timeline - yet they rejected the requirement to put a hard cap on the length of the review process. 
Refusal to respect the expertise of regional regulators:  The government's Bill C-69 does not sufficiently respect the expertise of provincial and life-cycle regulators in project assessments. The Bill significantly reduces their role by not allowing the regulatory bodies with the most knowledge of the industry and region to make up a majority on review panels.

Global investors have told Canada's business community, including the oil and natural gas industry, that Bill C-69 is uncompetitive, and that they have lost confidence in Canada's ability to build anything. Major projects are being cancelled, companies are selling Canadian assets, and investing billions in other countries. Bill C-69 is a massive fail for Canadians and cannot pass. 

"Adopting Bill C-69 without the Senate's proposed amendments is putting Canada's economic future in jeopardy, and sacrificing the livelihoods of hundreds of thousands of Canadians by introducing an unworkable Bill that increases uncertainty for investors and makes it harder for those directly impacted by projects to participate." McMillan said. "By refusing to accept the amendments proposed by the Senate, the Government of Canada is choosing to ignore the thousands of Canadians across the country that lent their voice to the review process."

Total capital investment in Canada's oil and natural gas sector is forecasted to fall to $37 billion in 2019 compared to $81 billion in 2014. 

Between 2014 and 2017 about 60,000 fewer people were employed in exploration and production, oil and natural gas, and oil sands construction across the country. Bill C-69 will put the future of major projects and employment throughout Canada at risk. 

The International Energy Agency's, World Energy Outlook 2018, projects total global energy demand will rise 27 per cent over 2017 levels by 2040. Combined, oil and natural gas will account for 53 per cent of the worlds' total energy demand by 2040.

More from Industry News

$2 billion TransAlta energy investment move to include natural gas over coal

TransAlta Corporation has introduced its Clean Energy Investment Plan, which includes converting its existing Alberta coal assets to natural gas and advancing its leadership position in renewable energy. The total cost of the plan is expected to be approximately $2 billion which includes approximately $800 million of renewable energy projects already under construction.

Oversupply of natural gas to push U.S. prices sharply down: IHS Markit

A persistent oversupply of natural gas will drive the 2020 average price at the Henry Hub down (in real terms) to a level not seen in decades, according to new report from IHS Markit. The oversupply—to be reinforced by a new surge in associated gas production from the Permian basin—will push the average price down below $2/MMBtu for the year, IHS Markit said. That is the lowest prices have averaged in real terms since the 1970s. In nominal terms, the last time that prices fell below $2 was 1995.

Oil and gas PPE landscape shows positive outlook, says Frost & Sullivan

The outlook for the uptake of personal and protective equipment (PPE) in the oil & gas (O&G) industry looks promising with the expansion of O&G activities through new global projects, improved stability and the presence of many occupational hazards. Vendors should focus on developing a global presence, multiproduct offerings, and close customer interactions to harness current growth opportunities. Frost & Sullivan expects the mature O&G PPE market to grow at a compound annual growth rate (CAGR) of 3.7% to reach $7.59 billion by 2023.

$1.4 billion power cogen plant planned for Suncor's oil sands base plant

Suncor is replacing its coke-fired boilers with two cogeneration units at its Oil Sands Base Plant. The cogeneration units will provide reliable steam generation required for Suncor's extraction and upgrading operations and generate 800 megawatts (MW) of power. The power will be transmitted to Alberta's grid, providing reliable, baseload, low-carbon power, equivalent to approximately 8% of Alberta's current electricity demand. This project will increase demand for clean natural gas from Western Canada.

August shows slight yearly increase in Canadian rig count

Baker Hughes, a GE company announced that the Baker Hughes international rig count for August 2019 was 1,138, down 24 from the 1,162 counted in July 2019, and up 130 from the 1,008 counted in August 2018. The international offshore rig count for August 2019 was 244, down 11 from the 255 counted in July 2019, and up 32 from the 212 counted in August 2018.

Subscribe to our free newsletter

Get our newsletter

Learn more

Clariant marks opening of new high throughput experimentation lab

Clariant has opened its next High Throughput Experimentation (HTE) Laboratory in Houston, Texas - the energy capital of the United States. The location is key as the new facility will be the first of its kind supporting the Oil & Gas industry, offering new and sophisticated solutions for customers. This lab is part of a global Clariant initiative to expand HTE capabilities to all Clariant Business Units, including direct support for Oil Services in North America, the Asia Pacific region, Latin America, Africa and the North Sea.

Orbital Gas Systems secures GasPTi orders from leading U.S. energy producer and transporter

Orbital Gas Systems has received orders to supply GasPTi systems for deployment across multiple natural gas plants by one of the largest U.S.-based producers and transporters of energy. These orders, part of a nascent, ongoing roll-out of GasPTi across the customer's extensive natural gas assets, will be utilized to deliver operating and environmental improvements and practically eliminate ongoing costs associated with maintenance and natural gas consumption at certain customer facilities. 

Enbridge reaches agreement with shippers to put Line 3 replacement into service

Enbridge Inc. has reached a commercial agreement with shippers to place the Canadian portion of the Line 3 replacement pipeline into service by the end of this year. This agreement reflects the importance of this safety-driven maintenance project to protecting our environment and ensuring the continued safe and reliable operation of the pipeline well into the future.

Quebec universities get $8.2 million to research oil spill response

Canada has the world's longest coastline and is surrounded by three oceans and the health of our oceans matters to all of us. The Government of Canada is dedicated to protecting oceans and waterways and to keeping them clean, secure and productive for the benefit of all Canadians, now and into the future. It is of vital importance that protection is given to the marine ecosystems that are home to an abundance of ocean life, support more than 350,000 jobs and sustain hundreds of coastal and Indigenous communities. The government also recognizes that scientific research is fundamental to evidence-based decision-making when planning and carrying out marine conservation efforts.

Subscribe to our free magazine

Get Our Magazine

Paper or Digital delivered monthly to you

Subscribe or Renew Learn more

Bakken shale production growth will be constrained by flaring restrictions and infrastructure bottlenecks

There is considerable potential to raise crude oil production in the Bakken shale play from the current level of approximately 1.44 million barrels of oil per day (mmbd) to at least 2 mmbd. However, flaring regulations and infrastructure bottlenecks in North Dakota are limiting production growth, according to GlobalData.

Rival downhole tools secures five year collaborative supply agreement for drilling motors

Rival Downhole Tools (Rival), a portfolio company of EV Private Equity, has secured a five-year collaborative supply agreement for drilling motors for US Land from a major oilfield services provider. Rival will utilize its market-leading engineering and operational capabilities to support the customer's substantial and growing directional drilling business. Rival will also accelerate the growth of its operational footprint into multiple basins to optimize its proximity to drilling activity. 

Subscribe to our free newsletter

Get our newsletter

Learn more

Hand protection maker Mechanix Wear a good fit to Gryphon investors

Gryphon Investors, a San Francisco-based middle-market private equity firm, has signed a definitive agreement to make a significant investment in Mechanix Wear, a leading designer and manufacturer of high-performance work gloves. Working alongside current owner and CEO Michael Hale, who will retain an ownership stake in the Company, Gryphon intends to build a leading platform in the Personal Protective Equipment (PPE) sector. The transaction, which is expected to close in the fourth quarter, is subject to customary closing conditions. Terms of the deal were not disclosed.

Husky to resume full production at White Rose

Following an extensive investigation, flow line repairs, integrity testing and approval of the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB), Husky Energy will resume production from the remaining two drill centres shut in following the November 2018 oil spill offshore Newfoundland and Labrador. Husky will now begin an orderly restart and expects to reach full rates by early next week.

Data acquisition system cuts costs on oil well stimulation services

CAS DataLoggers provided the data acquisition solution for MTS Solutions, an oil field service company headquartered in Bakersfield, California. MTS has been providing well stimulation services in California for over 30 years, maximizing production for clients using both traditional and green products. Data Acquisition Operations Engineer Kevin England explains, "We're a small business 25-man crew, as opposed to a multi-national company, so we needed a cost-effective monitoring solution for our jobs that still had the advanced functionality our customers require."

Subscribe to our free magazine

Get Our Magazine

Paper or Digital delivered monthly to you

Subscribe or Renew Learn more