Transportation capacity and market access are among the most critical issues facing the Canadian oil and gas industry today. These issues are exacerbated by an increasing number of new and overlapping regulations that have made it difficult to build new pipelines to get our products to markets.
To better understand how the regulatory environment is impacting Canada’s pipeline industry, the Canadian Energy Pipeline Association (CEPA) commissioned Ernst & Young LLP (EY) Canada to take an in-depth look at the layers of regulations imposed at both provincial and federal levels.
The resulting report from EY outlined grave implications for the competitiveness of Canada’s transmission pipeline industry.
So, can we reverse the problem of complex regulatory layering? It’s not too late.
After reviewing the findings and conclusions of the EY Report, CEPA made seven recommendations on how to address the regulatory challenges and regain Canada’s standing as an attractive and competitive destination for oil and gas investment.
“More than anything, pipeline companies and investors are looking for clarity, certainty and predictability,” says Lance Mortlock, EY Strategy Partner and Canadian Oil and Gas Leader. “Balancing the environmental, social and economic trade-offs is critical, and it may take years to assess whether recent and proposed regulatory changes will achieve these desired outcomes.”
There’s a lot of work to be done and CEPA looks forward to working with governments and regulators to develop regulations that enable our members to continue to be competitive and deliver the energy Canadians need as we build a safer, stronger energy future.
Do you want to know more about regulatory layering in Canada? You can catch up on our blog series by reading part 1 and part 2 now: