By August 3, 2017 Read More →

Energy free trade under NAFTA good for all North Americans – CAPP, API, AMEXHI


Tim McMillan, president and CEO, Canadian Assoc. of Petroleum Producers. Photo: CBC.

United States takes 99% of Canadian oil and gas exports

Energy free trade under the North American Free Trade Agreement (NAFTA) has been good for the people of Canada, the United States and Mexico, keeping energy on the continent more affordable and reliable for citizens and the economy, according to a joint paper released by the Canadian Association of Petroleum Producers, the American Petroleum Institute and Mexican Association of Hydrocarbon Companies.

NAFTA“The creation of NAFTA has been and continues to be mutually beneficial to the economy and people of all three trading partners — Canada, the U.S. and Mexico,” said Tim McMillan, president and CEO of CAPP.

“Since NAFTA’s inception in 1994 our three economies have become interconnected and integrated. Supporting a free trade zone is more compelling today than ever before.”

NAFTA is mutually beneficial to all three trading partners, say the three industry associations, pointing out that the integrated and interdependent North American market that NAFTA created maintains energy self-sufficiency and improves industry competitiveness in North America and worldwide.

API head Jack Gerard says that the natural gas and oil industry across North America is united in support for NAFTA.

“As the energy flows between our countries continue to grow, it’s important to highlight the critical role NAFTA has played in facilitating cross-border trade and investment in energy,” he said.

“The positions we put forward today reinforce our commitment to the energy trade alliance under NAFTA, which supports jobs and manufacturing in energy, helps to make energy more affordable, and enhances our energy security.”


Jack Gerard, president and CEO of the American Petroleum Institute.

Under the NAFTA renegotiation, there are opportunities to update the agreement but any changes that disrupt energy trade across North American borders or revert to high tariffs and trade barriers could put long term investments, national prosperity and jobs at risk as they depend on these deep trade relationships.

“After Mexico’s Energy Reform, NAFTA itself enabled much of the investment attraction, infrastructure development and a more intensive commercial exchange,” said Alberto de la Fuente, president of the Mexican Association of Hydrocarbon Companies.

“The synergy between NAFTA and the Energy Reform in Mexico is essential to attract investments, develop integrated value chains and increase North America’s economic competitiveness.”

McMillan says the upstream petroleum industry remains the largest private investor in Canada and the second largest source of export revenue.

The US is the largest export market for Canadian oil and the only market for Canadian natural gas. America is Canada’s only energy customer — about 99 per cent of  oil and natural gas exports go to the United States


Alberto de la Fuente, president of the Mexican Associ. of Hydrocarbon Companies.

every day.

CAPP forecasts Western Canadian oil supply will grow to 5.4 million barrels per day by 2030, an increase of 1.5 million b/d from today.

“NAFTA provides the continent with energy self-sufficiency and security and has the potential to create new opportunities in the future to enhance our trade relationships with the U.S. and Mexico,” said McMillan.

“As America is Canada’s largest trading partner, policy changes in the U.S. — on trade, energy and the environment — will greatly affect Canada’s oil and natural gas sector.”

The joint paper recommends support for market-oriented policies and opportunities for commercial growth and job creation under NAFTA, according to the release.

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