Northern Gateway Decision Supports Oil Market Diversification

CALGARY, ALBERTA–(Marketwired – Dec. 19, 2013) – The Canadian Association of Petroleum Producers today welcomed the National Energy Board’s joint review panel decision on the Alberta-B.C. Northern Gateway oil pipeline project.

“The decision, with its outlined conditions, is an important milestone in the process to achieve market diversification for Canada’s valuable oil products,” said CAPP vice-president Greg Stringham. It states this project is in the public interest. The conditions provide a path to success.

“Addressing the NEB’s conditions, and the five conditions specified by the B.C. government, requires focus from pipeline proponents, oil producers, First Nations, all levels of government and other interested groups.

“Today’s NEB decision, combined with Doug Eyford’s recent report pertaining to First Nations and energy infrastructure projects, and reports on marine safety from the government of B.C. and Transport Canada, provides a solid foundation to advance policy and other solutions with respect to safety, environmental protection and aboriginal consultation.

“Now it’s up to governments to work with industry, First Nations and stakeholders to determine the specific integrated measures that will ensure west coast market access.”

Virtually all Canadian oil exports currently go to the United States and it is important for sellers to have access to more than one market. Given current and projected oil sands growth, CAPP supports increased access to markets in Eastern Canada, the United States and the rapidly growing markets in Asia.

Oil pipeline access to the West Coast will strengthen Canada’s ability to receive maximum value for its natural resources by connecting responsible, secure oil suppliers and energy consumers.

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 $100 billion a year. CAPP’s mission is to enhance the economic sustainability of the Canadian upstream petroleum industry in a safe and environmentally and socially responsible manner, through constructive engagement and communication with governments, the public and stakeholders in the communities in which we operate.