CAPP offers statement on the 2024 Federal Budget

Statement from Lisa Baiton, CAPP president and CEO:

Canada’s world-class resource base stands as one of our foremost competitive advantages. The Bank of Canada has warned that weak productivity and low business investment is a national emergency. An economic and public policy environment that leverages Canada’s world-class resource base to provide well-paying jobs for Canadians, revenues to governments, and Canadian LNG to displace higher-emitting forms of energy overseas, has the potential to address this emergency.

The inclusion of the oil and natural gas industry in the National Indigenous Loan Guarantee Program is a significant advancement. Given that Indigenous equity deals in Canada predominantly involve oil and gas projects, this program opens avenues for Indigenous communities to access capital, fostering economic reconciliation and self-determination.

CAPP looks forward to Carbon Capture Investment Tax Credit receiving Royal Ascent, three years after its initial announcement. Such a credit holds the promise of enhancing Canada’s competitiveness against other jurisdictions in carbon capture utilization and storage (CCUS) projects, potentially attracting vital investment and helping meet climate targets.

Industry uncertainty lingers around the government’s proposed emissions policy. Clarification in this area is essential to inform investment decisions and uphold Canada’s status as an economic and environmental leader, both domestically and globally.

Layering on new corporate taxes on top of regulatory uncertainty and costs undermines Canada’s attractiveness for investment on the global stage. Royalty and tax frameworks already in place for the oil and natural gas industry ensure Canadians benefit significantly from the development of their valuable natural resources. Total government revenues in 2022 reached $45 billion, up nearly ten-fold since the historically low commodity prices in 2020. These revenues help governments to build critical infrastructure, operate schools and hospitals, and support vital social programs on which Canadians rely.

About CAPP
The Canadian Association of Petroleum Producers (CAPP) is a non-partisan, research-based industry association that advocates on behalf of our member companies, large and small, that explore for, develop, and produce oil and natural gas throughout Canada. Our associate members provide a wide range of services that support the upstream industry. CAPP’s members produce nearly three quarters of Canada’s annual oil and natural gas production and provide more than 400,000 direct and indirect jobs in nearly all regions of Canada. In 2022 across Canada, our industry contributed $111 billion to the Gross Domestic Product (GDP) in addition to paying $45 billion in taxes and royalty payments. CAPP is a solution-oriented partner and works with all levels of government to ensure a thriving Canadian oil and natural gas industry. We strive to meet the need for safe, reliable, affordable, and responsibly produced energy, for Canada and the world. We are proud to amplify industry efforts to reduce GHG emissions from oil and gas production and support Indigenous participation and prosperity.