The Canadian Association of Energy Contractors (CAOEC) opposes the federal government’s oil and gas emissions cap.
Today, the federal government released a regulatory framework to cap Canadian oil and gas emissions. CAOEC strongly opposes this policy as it will negatively impact Canadian energy workers and the small and medium-sized businesses that support them.
Mark Scholz, President & CEO of the CAOEC, stated, “The world will continue its decarbonization journey but will demand more pragmatic and affordable policies. The federal government’s emissions cap will hinder Canada’s ability to attract capital. It means higher energy costs and fewer jobs for Canadian energy workers.”
The federal government continues to utilize regulatory sticks instead of fiscal incentives like the United States. There, the Inflation Reduction Act (IRA) has attracted capital and accelerated low-carbon technology and innovation in the energy sector at the expense of Canadian businesses and workers. An emissions cap will further erode Canada’s competitiveness with the United States and, ironically, negatively impact its decarbonization efforts.
Scholz stated, “We have engaged the federal government in good faith over the past two years and have asked them to partner with us to accelerate the deployment of carbon abatement technology. As of today, we have received no support from this government. We are ready to do our part and position Canada as a world leader in carbon efficiency. Investment in the drilling and service rig sector will also help Canada fast track the development of critical resources such as lithium, helium, geothermal energy, as well as carbon capture, all of which depend on our members’ rigs to move ahead.”
The future of Canada’s workforce, the energy security of communities across the country, the production of critical minerals, and the success of Indigenous economic participation within our industry will depend on the government dramatically changing its approach.
“The current federal policy approach isn’t working as investment and jobs are leaving Canada. Stop working against us and start working with us. These misguided policies will negatively impact Canada’s future prosperity and opportunities for our workers,” stated Scholz.
About CAOEC
The Canadian Association of Energy Contractors (CAOEC) represents 95 land drilling, directional drilling, offshore drilling, and service rig member companies on the frontlines of energy security and transformation. They operate a fleet of 444 drilling rigs and 735 service rigs in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Atlantic Canada. CAOEC’s members are varied and diverse, and include many small- and medium-sized enterprises that have been leaders in creating opportunities for young people, Indigenous communities, and middle-class workers.
For more information, contact:
An Tran – Communications Specialist
Canadian Association of Energy Contractors
Phone: (403) 264-4311 ext. 118
Email: atran@caoec.ca