Federal oil and gas 'production cap' will cut 50,000 jobs, cost billions in lost investment: report

A study commissioned by the Canadian Association of Petroleum Producers says cutting emissions by 40% through 2030 would result in one million fewer barrels of oil per day, 51,000 job cuts and $75 billion in lost capital investment.

Federal oil and gas 'production cap' will cut 50,000 jobs, cost billions in lost investment: report
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A lobby group for Canada’s oil and gas sector says the proposed federal emissions cap will decimate fossil fuel production, job creation, and future investment.

According to a study commissioned by the Canadian Association of Petroleum Producers (CAPP), cutting emissions by 40% through 2030 would result in one million fewer barrels per day, 51,000 job cuts and $75 billion in lost capital investment.

Ottawa’s cap on oil and gas production is part of a 2021 election campaign promise to reduce emissions by 40% to 45% across all sectors of the economy in seven years. 

“Unlike almost every other sector of our economy, pollution from the oil and gas sector is still going up,” federal Environment Minister Steven Guilbeault told reporters last December 7.

The policy includes curbing oil and gas emissions between 35% to 38% below 2019 levels during that period.

Industry professionals could reduce their emissions target to between 20% and 23% if they purchase offset credits or contribute to a decarbonization fund.

“This is the single greatest threat to our province since the National Energy Program,” Environment Minister Rebecca Schulz told Rebel News.

“Steven Guilbeault has chosen to continue to put his radical ideology first, while putting Canadian workers and struggling families second,” she added.

Premier Danielle Smith previously called the cap an “intentional attack” on Alberta’s economy and explicit jurisdiction.

They are “singling out the oil and gas sector” for punitive federal treatment, and are “risking hundreds of billions of investments,” she said.

Smith accused the federal government of devaluing retirement investments worth millions and risking the jobs of hundreds of thousands of Albertans.

“I think we are facing a crisis of the federal government's making, which is why they have to back down,” she said, threatening to invoke the Sovereignty Act should Ottawa continue its pursuit of a production cap.

“They're picking and choosing for the sole reason that they want to attack Alberta, attack our industry and attack our provincial jurisdiction. And that is why it is so unacceptable and why we're just not putting up with it.”

Should Ottawa continue to ignore the Constitution, Minister Schulz told Rebel her cabinet and caucus colleagues will “develop a constitutional shield” to defend Alberta from federal intrusion.

“Alberta will never support any regulation which will devastate entire communities, hurt families, and kill tens of thousands of jobs, mainly in our province,” she said.

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