CAPP projects slight increase in Canadian oil and gas capital spending in 2024

A rainbow appears to come down on pumpjacks drawing out oil and gas from wells near Calgary, Alta., Monday, Sept. 18, 2023. Canada has the third largest oil reserves in the world and is the world's fourth largest oil producer. THE CANADIAN PRESS/Jeff McIntosh

CALGARY — The industry group representing Canada's oil and gas producers says capital investment in the sector will edge slightly higher in 2024.

The Canadian Association of Petroleum Producers is forecasting capital expenditures for the upstream oil and natural gas sector will reach $40.6 billion this year, a small increase from the $39 billion invested by companies in 2023.

CAPP president and CEO Lisa Baiton says the sector is optimistic in anticipation of the expected completion of the Trans Mountain pipeline expansion, which has led Canadian oil producers to boost their output to record levels.

But she says companies are also feeling cautious in light of what she describes as ongoing uncertainty surrounding emissions policy in Canada.

In Alberta specifically, CAPP is forecasting oil and gas producers to maintain a steady investment level year over year at $29 billion, with the oilsands expected to contribute around $13.3 billion of that.

While a consortium of oilsands companies known as the Pathways Alliance have proposed spending $16.5 billion on a massive carbon capture and storage network to reduce emissions from oilsands sites in northern Alberta, they have not yet pulled the trigger with a final investment decision.

This report by The Canadian Press was first published Feb. 27, 2024.