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CAPP sees mutual benefit in Trump’s KXL executive order for Canada and United States


The executive order advancing the Keystone XL (KXL) Pipeline Project is a major economic step forward for Canada, the United States and for North American energy security, reports the Canadian Association of Petroleum Producers (CAPP).

In its position statement, CAPP said that Canada needs access to new customers to the east, south and west. The Canadian oil and natural gas industry has been facing challenges to maintain competitiveness at home and abroad and pipeline approvals advance opportunities to make Canada an attractive place for investment.

All but one per cent of Canada’s oil goes to the United States. According to CAPP, the association and its members are committed to work with the U.S. government to ensure mutual energy, economic and environmental success. “It is important that we continue to serve our number one customer while we continue to look to add more global customers,” reports CAPP.

By accessing new customers in new markets Canadian oil producers can get a better world-price for their products. Global demand for energy is expected to increase by 30 per cent through 2040, almost a quarter of that total energy demand is expected to come from oil.

Supporting information:

  • *Over the past six years, KXL has undergone extensive regulatory and environmental review; the review process makes it clear the project will cause no undue environmental impacts, including no substantive change in GHG emissions.
  • *Oil sands crude will replace declining U.S. Gulf Coast heavy oil imports from Saudi Arabian, Venezuelan, Iraqi or Mexican.
  • *In June 2016, the CAPP crude oil forecast showed supply closely matched pipeline capacity at 4 million barrels per day; supply is expected to increase to 5.5 million barrels per day by 2030 – meaning all pipelines in all directions are needed.
  • *Canada exported 3.2 million barrels of oil per day to the U.S. in October 2016, accounting for 42 per cent of all U.S. crude imports.
  • *To date in 2016, approximately 11 per cent of U.S. natural gas consumption came from Canada.
  • *U.S. imports of Canadian crude oil and refined products combined account for 19 per cent of U.S. demand for refined petroleum products.
  • *In 2015, energy, including crude oil and natural gas, exports accounted for 15 per cent of all merchandise exports.
  • *1,939 U.S. companies directly supplied the oil sands between 2012 and 2013.
  • *Canada and the U.S. have one of the world’s largest trade relationships.
  • *Of the 50 U.S. states, 35 count on Canada as their number one export market.
  • *Nearly 9 million jobs depend on trade and investment with Canada.
  • *Canada and the U.S. are the world’s largest trading partners with C$782 billion in goods and services traded annually.
  • *During the Obama years, 2008-2016, U.S. oil production grew by 4.4 million barrels per day and natural gas production grew by 20.9 BCF per day. That per-day growth is more than Canada produces daily.

For more information, visit www.capp.ca.


Rehana Begg

Rehana Begg

Rehana Begg is the editor of Machinery and Equipment MRO magazine and REM – Resource Engineering and Maintenance magazine.
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