|By Marketwired .||
|January 31, 2014 05:14 PM EST||
CALGARY, ALBERTA -- (Marketwired) -- 01/31/14 -- The U.S. State Department's final environmental impact statement for the Canada-U.S. Keystone XL oil pipeline project provides the basis for approval of the pipeline on its strong environmental, economic and energy security merits, the Canadian Association of Petroleum Producers said today.
"With this extensive environmental review now complete, we encourage the U.S. government to move expeditiously to a favourable decision on Keystone XL," said CAPP President Dave Collyer.
Consistent with its earlier reviews, the State Department continues to show that Keystone XL will cause no substantive change in global greenhouse gas emissions or other undue environmental impacts. The report states that "denial of any one crude oil transport project, including the proposed project, remains unlikely to significantly impact the rate of extraction of the oil sands."
"Canadian oil sands crude oil is the right energy, from the right country, for U.S. consumers," Collyer said. "Canada's world-class resources, history of innovation and economic ties to the U.S. make Canadian oil the natural choice to displace foreign imports and build true North American economic and energy security. Canadian producers believe enhanced energy trade benefits both countries and we are proud to be the single largest supplier of crude oil to the U.S. today."
Overall, oil sands account for 0.14 per cent of global GHG emissions. Oil sands companies reduced per-barrel GHG emissions by 26 per cent since 1990 and continue to seek significant reductions through technology and innovation.
Among the top five suppliers of oil to the U.S. (Canada, Mexico, Nigeria, Saudi Arabia and Venezuela), only Canada has GHG regulations in place, implemented by the Alberta government in 2007.
Oil sands crude oil transported by Keystone XL will replace declining U.S. Gulf Coast heavy oil imports from Mexico and Venezuela with similar GHG emissions. As such, Keystone XL will have virtually no impact on GHG emissions because it produces no increase in total crude oil imports to the United States. The products derived from Canadian crude oil will similarly simply replace products in the market currently derived from other imports.
"This results in a situation where the refiners have significant incentive to obtain heavy crude from the oil sands," the report states.
Oil sands expansion, pipeline construction and operation, and maintenance of U.S. refineries processing oil sands crude oil represent billions of dollars of potential investment and thousands of skilled jobs in the United States. Also, there are more than 2,400 companies in the U.S. currently providing goods or services to the Canadian oil sands industry.
Together with the new growth in U.S. domestic oil supply, Canada's oil sands will add security and prosperity to both the Canadian and U.S. economies in a safe and responsible manner.
"Keystone XL is about from where the United States gets the oil it needs - Canada or elsewhere - and we believe Canada is the responsible choice to further strengthen the Canada-U.S. energy trade relationship and benefit both countries," Collyer said.
The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and crude oil throughout Canada. CAPP's member companies produce about 90 per cent of Canada's natural gas and crude oil. CAPP's associate members provide a wide range of services that support the upstream crude oil and natural gas industry. Together CAPP's members and associate members are an important part of a national industry with revenues of about $110 billion a year. CAPP's mission is to enhance the economic sustainability of the Canadian upstream petroleum industry in a safe and environmentally and socially responsible manner, through constructive engagement and communication with governments, the public and stakeholders in the communities in which we operate.
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