Canadian petroleum industry urges export diversification following U.S. tariffs

Investing.com -- In response to the recent implementation of across-the-board tariffs by the U.S., the Canadian Association of Petroleum Producers (CAPP) issued a statement today calling for Canada to redirect its oil exports away from the United States.

The statement, made by CAPP President and CEO Lisa Baiton, expressed deep disappointment in the U.S. Administration's decision to impose tariffs on Canadian goods and highlighted the changed nature of the trade relationship between the two countries. The CAPP emphasized the importance of acting with urgency to focus on the Canadian national interest, stating that without a greater global market reach and energy security, Canada's leverage in its trade relationship with the U.S. would be limited.

The statement also acknowledged the complexity of North American and global oil and natural gas markets and the difficulty in predicting how a 10 percent tariff on Canadian oil and natural gas would affect supply, demand, and trade patterns. It recognized Canada's energy advantage as its greatest competitive advantage through economic cycles and expressed confidence that Canadian oil and natural gas producers would find the best ways to mitigate the impact of tariffs and realign themselves to thrive in a dynamic global market.

The CAPP called for an urgent policy overhaul to create a streamlined and durable regulatory framework that allows projects with viable markets and motivated investors to succeed. It stressed the importance of strengthening market access and trade relationships for economic growth and advocated for diversifying exports beyond North America into Asian and European markets to promote long-term stability. The statement also emphasized the need to secure Ontario and Quebec’s energy supply as a national priority.

The statement concluded by asserting that Canada is at a significant moment in its history and urged the country to seize this moment. It stated that the choices made today would determine whether Canada becomes a global energy leader or continues to fall behind. The CAPP expressed its belief that with decisive leadership, smart reforms, and a renewed commitment to investment, Canada can unlock the full potential of its natural resources, support its partners and make new ones, create jobs, and build a more prosperous and resilient economy for Canadians.