As more scientists warn of the climate risks of our reliance on fossil fuels, the Canadian Association of Petroleum Producers (CAPP) projects investment in oil and natural gas production will reach $40 billion This year. This is the third consecutive year of investment growth.
Figures released on Wednesday by the sector’s business group indicate that the amount spent on production in 2023 will exceed investment levels prior to the period of the COVID-19 pandemic, increasing by 11% to reach 40 billion euros. dollars.
Conventional oil and natural gas investments are expected to reach $28.5 billion in 2023, while oil sands investments are expected to reach $11.5 billion.
Unsurprisingly, Alberta will benefit from the majority of funds injected by investors into the industry, with $28 billion this year. Natural gas producers in British Columbia, which mainly exploit deposits through fracking, are expected to increase their investments by about $1 billion in 2023, to a total of $7.2 billion.
offshore oil
In the marine environment, CAPP projects that investments will amount to $1.3 billion. “In 2022, Canada’s offshore development showed positive signs with the federal government’s approval of the environmental impact statement for the potential Bay du Nord project, as well as the announced restart of the West White Rose project,” said the organization in a press release issued Wednesday morning.
CAPP adds that “future exploration programs will be critical to the future of Newfoundland and Labrador’s offshore industry”. The province hopes to double its oil production in the marine environment after 2030. This would then exceed 237 million barrels of oil per year.
Across Canada, planned investments should allow companies to maintain their facilities, but also plan for “incremental growth”. Additional spending “should also be devoted to environmental protection and emission reduction technologies, such as carbon capture, use and storage”.
The Trudeau government had also invited representatives of the oil and gas industry to the most recent United Nations climate conference, in particular so that they could present their projects for reducing greenhouse gas emissions.
However, these projects do not concern so-called “downstream” emissions, ie during the use of fossil fuels. Greenhouse gas emissions from the use of oil, natural gas and coal exported from Canada totaled more than 4 billion tonnes between 2016 and 2020, according to an estimate by the federal environment ministry.
“Decades” of prosperity
Reacting to data released by her organization, CAPP President and CEO Lisa Baiton argued that the fossil fuel industry could see “decades” of prosperity.
“Given the growth of the liquefied natural gas industry, the expected completion of the Trans Mountain pipeline expansion project, and the billions of dollars in emissions reduction investments waiting to be unlocked, Canada is well positioned to play a much greater role in providing the world with responsibly produced energy resources,” she said in a statement.
Mme Baiton also pointed out that revenues from this industry enable governments to invest “in our hospitals, schools, social programs and infrastructure projects across the country.”
According to the United Nations, to achieve the goals of the 2015 Paris Agreement and prevent the worst effects of the climate crisis, “the world must move away from fossil fuels as soon as possible”.
In a report published in 2021, the International Energy Agency also stressed that, to achieve carbon neutrality by 2050 and limit global warming to +1.5°C, countries must give up future development. oil and gas projects. The transformation of the energy landscape will however require unprecedented investments, while fossil fuels still represent more than 80% of the global energy mix.