CAPP CEO Discusses Canadian Oil and Gas Producers’ Resilience Amid Market Volatility
The head of the Canadian Association of Petroleum Producers stated that despite recent fluctuations in oil prices and market conditions, the long-term demand outlook for Canadian oil and gas remains strong.
In response to the current market volatility, Lisa Baiton emphasized that the fundamentals supporting Canadian oil and gas are robust and enduring.
Recent events, such as President Trump’s tariff announcements and OPEC’s production increase, have caused fluctuations in West Texas Intermediate crude prices. However, Baiton remains confident in the continued demand from the U.S. and the growth in AI data centers driving future energy needs.
Analysts suggest that in order to proceed with new oilsands projects, stable oil prices above US$80 per barrel are required, while existing projects using steam wells could continue with current low prices.
Additionally, predictions indicate that a significant decrease in U.S. onshore production could occur if WTI prices fall to US$50 per barrel.
CAPP advocates for a policy reset to support the development of Canada’s oil and gas sector, including revisiting environmental review regulations that hinder project progress.
Baiton highlighted the importance of Canada’s natural resources for economic and national security, calling for a focus on shaping the country’s future through sustainable energy practices.
