CAPP sends Ottawa an outline for how to fix the economy
If the Trudeau Liberals are looking for help on how to reset the economy, the Canadian Association of Petroleum Producers (CAPP) have a few suggestions.
“We are encouraged by the actions the federal government has taken to date, and appreciate the continuous communication and consultation undertaken by the ministers and senior staff in key departments,” says Tim McMillan, president and CEO of CAPP. “Urgent action is needed to provide a measure of certainty for Canadian energy producers during exceptionally uncertain times. Since we began our discussions with the Government of Canada three weeks ago, we have lost between $6 billion to $8 billion of investment in the Canadian energy sector. This has resulted in job losses across the country and further damage to every sector of our economy.”
CAPP has been working closely with the federal government to identify important areas for urgent action to help Canada’s energy sector survive the current economic crisis, and other measures needed to support the country’s recovery once the COVID-19 pandemic subsides.
Canada’s oil and natural gas sector has been designated as an essential service.
CAPP is awaiting additional clarity on Ottawa’s intentions with regards to the economic stimulus plan under development. There are three specific areas of focus for the oil and natural gas industry:
- Liquidity for companies. Access to capital and measures that will enable operators to protect jobs and invest in projects that will get Canadians working. This would include:
- Work with government agencies and financial institutions to ensure companies are provided with continued access to existing or new credit support.
- Support or incentives for the reclamation of inactive and orphan wells; creating jobs for people working for service companies and indigenous communities who are particularly impacted be the downturn.
- Regulatory certainty. As the oil and natural gas industry looks to weather the crisis and support the future recovery, stability is required. Many of the workers who would normally be engaged in the regulatory reporting aspects of our business are not at our sites due to COVID-19 health measures. Our immediate focus is ensuring safe and reliable operations, and at this time we hope all levels of government will:
- Adopt a “do no harm” principle with respect to regulations and a temporary “tools down” approach to new policies while we all work to ensure essential services are provided during the COVID-19 pandemic.
- Adopt a flexible approach to compliance for certain low-risk regulatory requirements to enable operators to focus on critical activities to protect the health and safety of workers.
- Essential Service. The oil and natural gas industry is an essential service and we appreciate the actions the Government of Canada has already taken by designating the industry, its workers, and the supply chain as essential. This ensures vital energy is delivered to Canadians to keep homes heated, the electricity on, and vehicles running.