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CAPP forecasts slight increase in Canadian oil and gas capital spending in 2024

Click to play video: 'Trans Mountain startup will boost Canadian oil production to all-time high: Deloitte'
Trans Mountain startup will boost Canadian oil production to all-time high: Deloitte
WATCH ABOVE: (From October 2023) The start-up of the Trans Mountain pipeline expansion will boost Canadian oil production to an all-time high of 375,000 barrels per day over the next two years, according to a new report from Deloitte. That’s more than the total amount of oil production added by the Canadian oil industry over the last five years – Oct 5, 2023

The industry group representing Canada’s oil and gas producers says capital investment in the sector will edge slightly higher in 2024.

The Canadian Association of Petroleum Producers is forecasting capital expenditures for the upstream oil and natural gas sector will reach $40.6 billion this year, a small increase from the $39 billion invested by companies in 2023.

CAPP president and CEO Lisa Baiton says the sector is optimistic in anticipation of the expected completion of the Trans Mountain pipeline expansion, which has led Canadian oil producers to boost their output to record levels.

But she says companies are also feeling cautious in light of what she describes as ongoing uncertainty surrounding emissions policy in Canada.

In Alberta specifically, CAPP is forecasting oil and gas producers to maintain a steady investment level year over year at $29 billion, with the oilsands expected to contribute around $13.3 billion of that.

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While a consortium of oilsands companies known as the Pathways Alliance have proposed spending $16.5 billion on a massive carbon capture and storage network to reduce emissions from oilsands sites in northern Alberta, they have not yet pulled the trigger with a final investment decision.

Click to play video: 'Alberta looks to rely on Heritage Savings Trust Fund going forward'
Alberta looks to rely on Heritage Savings Trust Fund going forward

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