MESSAGE FROM THE EXPLORERS AND PRODUCERS ASSOCIATION OF CANADA (EPAC) TRISTAN GOODMAN

President and CEO, Explorers and Producers Association of Canada

EPAC represents over 80 upstream oil and natural gas producers from start-ups to multi-billion-dollar public companies. EPAC members have their head offices in Canada and produce about 40 per cent of all hydrocarbons in the country. On an annual basis, our members directly support over 45,000 jobs and over $40 billion in capital and operational spending. These companies are the engine of the industry and invest billions of dollars each year developing new energy reserves while providing the North American market with secure, reliable, and responsibly produced energy sources.

As 2023 moves along, a renaissance in our Canadian energy sector is starting to take shape – the future will be cleaner and look different than in the past, but it will also include many old friends. This renaissance represents a massive opportunity: our producers can supply the responsible, clean, and secure energy the world needs while also helping Canada achieve its climate goals, its Indigenous reconciliation goals, and respond to inflation and affordability concerns for Canadians.

EPAC member companies are delivering real emissions reductions and are producing more with less GHG emissions than just a few years ago. Our members have collectively invested hundreds of millions of dollars in abatement technologies, including the deployment of three of the four large-scale CCUS projects in Canada. Others are actively investing in clean tech ventures, including potential future hydrogen development and methane reductions. All of these are being accomplished with an unprecedented level of engagement and participation of Indigenous communities who see huge economic opportunities associated with responsible resource development.

While many in our sector are delivering strong business performance and emissions reductions, the world has entered a period of energy crisis. To ensure the sector can continue to produce needed energy for home and abroad, while continuing to lower emissions, we need increased competitiveness in government policy and balanced, realistic policy discussions – because investors consider this as they determine whether they should bring their business to Canada or move it to other countries (like the United States whose recent Inflation Reduction Act has tilted the balance in favour of U.S.-based clean technology investment).

It is important for all Canadians to understand that to improve energy security and affordability, mitigate inflation, and continue reducing emissions – investment in our sector must occur. For this to happen, international investors need to stop seeing Canada as an environment where projects take too long to get approved and built and where regulatory goalposts are uncertain.

Energy security, inflation, and affordability challenges are likely to remain for the foreseeable future. So too are the challenges around the implementation of climate policy and the continuation of the long journey toward Indigenous reconciliation.

The good news is that if we can improve Canada’s competitiveness for investment, our energy sector is well positioned to help Canada navigate these challenges. EPAC member companies will continue emissions reductions while generating the good paying jobs, government revenues, and economic contributions to help Canada’s economy weather storms – like we have in the past, only cleaner.

In summary: A Canadian energy renaissance is poised to occur in a manner that all Canadians can support. There is enormous opportunity ahead as the world increasingly recognizes Canadian energy production can be a solution to climate challenges and energy security – the key to realizing this opportunity is making Canada the most competitive jurisdiction for investment. v