The Canadian Association of Petroleum Producers is calling on the federal government to support the industry to attract investment, advance environmental leadership and encourage innovation.

In a news release on Thursday, the association said its recommendations to the federal government include:

  • A visible government commitment to work with the oil and natural gas industry to demonstrate Canada is a supportive and competitive country in which to invest over the long term;
  • Prioritize a 100 per cent immediate deductibility, levelling the playing field consistent with other capital intensive industries in Canada, for oil and gas sector capital investments; including clean technology and emission reducing investments; and 
  • Work together to develop and implement an integrated recovery strategy that considers goals around economic growth, job creation, Canada’s climate targets, its clean technology export ambitions and economic reconciliation with Indigenous communities.

“Canada’s oil and natural gas industry is committed to creating good jobs, generating benefits for Indigenous communities and advancing Canada’s environmental leadership. Working collaboratively with the federal government we have an opportunity to reset the national conversation about energy and bring Canadians together to build value across the country,” said Tim McMillan, president and CEO of CAPP, in a statement.

“A strong industry creates jobs for Canadians and generates desperately-needed revenues for government. The oil and natural gas industry is crucial to our country’s economic well-being and can help lead our recovery, as well as be the foundation for long-term resilience.

“Provincial and federal governments have stepped up to provide critical support to industry during this crisis but we cannot rely on government spending alone for recovery. It is crucially important we make the right policy decisions so Canada can compete for investment dollars in what is going to be a hyper-competitive international market.”

CAPP said the oil and natural gas sector is Canada’s largest industry, generating more than $100 billion in gross domestic product (GDP) annually and supporting half a million jobs across the country. The industry is also the biggest source of international investment and produces the country’s largest export commodity, it added.

“Oil and natural gas projects are shovel-ready and shovel-worthy. They can immediately put Canadians back to work with a multi-billion-dollar national supply chain, offer economic and self-sustaining opportunities for Indigenous communities and generate desperately-needed revenues for governments in the form of taxes and royalties. These objectives can be achieved while leveraging the sector’s leadership in emissions reduction, water protection, and land and species management,” said CAPP.