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Canadian Association of Petroleum Producers (CAPP): Nova Scotia Govt.'s Decision May Result in Missed Opportunity

CALGARY, ALBERTA -- (Marketwired) -- 09/03/14 -- The Canadian Association of Petroleum Producers today expressed disappointment with the Nova Scotia government's decision to preclude the use of hydraulic fracturing to develop the province's onshore natural gas resources.

"The government's decision appears to be largely based on considerations other than the technical knowledge and experience of industry regulators and experts in Canadian jurisdictions where hydraulic fracturing has been used safely for many decades to develop natural gas," said Dave Collyer, president and CEO of the Canadian Association of Petroleum Producers. "While the commercial viability of Nova Scotia's onshore natural gas resource has yet to be fully proven, today's announcement has the potential to preclude Nova Scotians from benefitting from the responsible development of this resource."

Hydraulic fracturing has been used safely for more than 60 years in Western Canada, according to the provincial regulators in British Columbia and Alberta. Comprehensive government regulations and industry operating practices are in place in jurisdictions where natural gas is produced to ensure public safety and the protection of the environment.

We expect technology to continue to improve, and this will be reflected in both industry performance and regulatory requirements.

"We encourage the government of Nova Scotia to continue to assess regulations, industry's strong technical base and safe operating practices used in other parts of Canada," Collyer said. "We also encourage the Nova Scotia government to provide the flexibility to allow the future development of onshore natural gas as it drafts legislation this fall."

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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