President and CEO Canadian Association of Petroleum Producers Tim McMillan speaks to the media at the Alberta Legislature in Edmonton on May 10, 2016. Despite the recent modest recovery in oil prices to around US$50 per barrel, Calgary-based Canadian Energy Research Institute says a full recovery will take years. McMillan, CEO of the Canadian Association of Petroleum Producers, said prices may eventually recover but the Canadian oilpatch won’t go back to the way it was in 2014. He expects the industry to emerge as a much leaner version of itself thanks to cost controls and more efficient oilfield technologies it has had to employ to survive. THE CANADIAN PRESS/Amber Bracken

President and CEO Canadian Association of Petroleum Producers Tim McMillan speaks to the media at the Alberta Legislature in Edmonton on May 10, 2016. Despite the recent modest recovery in oil prices to around US$50 per barrel, Calgary-based Canadian Energy Research Institute says a full recovery will take years. McMillan, CEO of the Canadian Association of Petroleum Producers, said prices may eventually recover but the Canadian oilpatch won’t go back to the way it was in 2014. He expects the industry to emerge as a much leaner version of itself thanks to cost controls and more efficient oilfield technologies it has had to employ to survive. THE CANADIAN PRESS/Amber Bracken

Oil and gas project delays hurting Canada’s reputation, industry group says

Canada’s pipeline gridlock is harming its global reputation as an attractive place to invest in oil and gasprojects, says a leading industry group.

VANCOUVER — Canada’s pipeline gridlock is harming its global reputation as an attractive place to invest in oil and gas projects, says a leading industry group.

Tim McMillan, CEO of the Canadian Association of Petroleum Producers, said Donald Trump’s election in the United States adds pressure to Canada to clear regulatory hurdles blocking new projects.

“We may see some or a lot of that capital that would normally come to Canada going other places and to the U.S., who is targeting it,” McMillan told The Canadian Press in an editorial board meeting.

“We should be looking at how we position ourselves to have the regulatory framework that we desire and the outcomes we want, but to do it in the most efficient way we possibly can.”

The incoming U.S. president has declared he will centre resources in his economy and lift barriers to development. Many in Alberta’s oilpatch have expressed concern that Trump will make it harder for Canada to compete for global investment.

Canada has seen many major pipeline projects stalled for the better part of the last decade, with Northern Gateway scuttled by the courts, Keystone XL rejected by U.S. President Barack Obama and protesters gearing up to battle the expansion of the Trans Mountain pipeline if it’s approved by the federal government in the coming weeks.

The petroleum association represents the companies that produce about 85 per cent of Canada’s natural gas and crude oil. Representatives from Canada’s Oil Sands Innovation Alliance and the Canadian Energy Pipeline Association also participated in the meeting with The Canadian Press.

McMillan noted that there was potential for Trump to reverse Obama’s decision on Keystone XL. But otherwise, the U.S. election should be viewed as a “call to action” for Canada, he said.

He said Canada’s reputation has slipped in recent years to one where companies aren’t as confident as they once were that projects will be built in a timely way. The National Energy Board process has taken longer than expected on major projects, and court challenges must be dealt with efficiently as well, he said.

“Canadians have an expectation that we have a world-class regulator that bases decisions on science, on engineering, on geology, and also on community engagement,” he said. “If that’s our outcome that we want, that doesn’t mean we shouldn’t have an efficient system.”

He added Canada is not only competing with the U.S. but with Nigeria, Venezuela, Saudi Arabia and Iraq.

Former prime minister Stephen Harper’s government tried to streamline the National Energy Board process in 2012, with controversial results. It created strict timelines that applied to the review of Kinder Morgan Canada’s proposed Trans Mountain expansion, prompting protests and court challenges.

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