By Laine Mitchell (Twitter: @Laine_Mitchell)

CAPP provides update on oil and gas industry to town council

Aug 2, 2018 | 12:13 PM

The Canadian Association of Petroleum Producers provided a glimpse into the state of the oil and gas industry to Drayton Valley Town Council on Wednesday. 

Kelly McTaggart with CAPP says oil prices have recovered, despite some volatilities that still exists in the market. 

“Prices have risen since the lows during 2014 to 2016, however we are still seeing some challenges due to exporting and access to markets because of pipeline capacity.”

Canada ‘s pipelines are currently at max capacity, with rail being relied on to pick up the slack. McTaggart added that the three key projects needed to be built to relieve the oil bottleneck currently face regulatory challenges. 

In 2017 after the oil crash, there was a 14 per cent increase in capital investment in Canada, however in 2018 investments are down by five per cent.

11 a.m. start

National Day of Mourning ceremony goes Friday at Bower Ponds

25m ago

Please Be Mindful

Caution urged due to dry spring conditions in Red Deer

42m ago

'Inspiring Student Success'

Indigenous students enjoy learning about their culture at special conference

3h ago

However the country’s largest customer and competitor, the United States, is beaming with a large increase in capital investments.

She added that the Enbridge Line Three, Keystone XL and Trans Mountain pipelines need to be built, with the demand for oil and gas only set to increase in the coming decades.

By 2030 India will be the top importer of oil in the world, ahead of China and the U.S. Today, India imports 3.8 million barrels of oil per day, as much as Canada makes daily. 

The International Energy Agency forecasts that by 2040 the demand for natural gas will increase by 45 per cent, with 80 per cent of that growth taking place in developing countries like China and India.