FORT ST. JOHN, B.C. – Upstream spending for 2021 is slated to increase by 14 per cent this year in B.C. according to the Canadian Association of Petroleum Producers.
British Columbia addressed competition concerns by setting benchmarks for its CleanBC Industry Incentive Program. This program refunds a portion of the provincial carbon tax, helping B.C. commodities to compete.
BC Hydro reduced industrial electricity rates in 2020 by 1 per cent and delayed its scheduled carbon tax increase. In addition to ongoing projects, the global rollout of a Covid-19 vaccine should lead to higher economic activity and energy demand.
Growing support for Liquefied Natural Gas in British Columbia drives investment into one of the largest capital projects in Canadian history. Natural gas and oil are Canada’s largest export commodities by value.
Investment is focused in Alberta and British Columbia, while Saskatchewan and offshore numbers show only slight improvement.
After a year full of record lows, this marks the start of a long road to economic recovery for the oil and gas industry.
CAPP president and CEO Tim McMillan is optimistic about the forecast.
“A more than three billion dollar increase in planned upstream natural gas and oil spending signals that producers are invested in Canada’s economic recovery. With some hard work, we can build momentum from this positive news, and position Canada for success as economies around the world recover.”
According to Statistics Canada, crude oil, bitumen, natural gas, and refined petroleum products generated over $112 billion of all Canada’s exports.