Canadian Association of Petroleum Producers (CAPP) Market Research Report

Background

Overview

The Canadian Association of Petroleum Producers (CAPP) is a non-partisan, research-based industry association headquartered in Calgary, Alberta. Established in 1992 through the amalgamation of the Canadian Petroleum Association and the Independent Petroleum Association of Canada, CAPP represents companies involved in the exploration, development, and production of oil and natural gas throughout Canada. Its members account for nearly three-quarters of Canada's annual oil and natural gas production.

Mission and Vision

CAPP's mission is to advocate for and enable economic competitiveness and safe, environmentally and socially responsible performance on behalf of the Canadian upstream oil and natural gas industry. The association strives to meet the need for safe, reliable, affordable, and responsibly produced energy for Canada and the world.

Industry Significance

The oil and natural gas industry is Canada's largest industry, generating more than $100 billion in gross domestic product (GDP) annually and supporting nearly 500,000 jobs across the country. In 2022, the industry contributed $111 billion to Canada's GDP and paid $45 billion in taxes and royalties to governments nationwide.

Key Strategic Focus

Core Objectives

CAPP focuses on advocating for policies that support the growth and sustainability of the Canadian oil and natural gas industry. This includes promoting economic competitiveness, environmental responsibility, and social engagement.

Areas of Specialization

The association specializes in areas such as climate change, innovation and technology, tolls and tariffs, and Indigenous relations. CAPP works closely with all levels of government to ensure a thriving Canadian oil and natural gas industry.

Key Technologies Utilized

CAPP supports the adoption of technologies that enhance the efficiency and environmental performance of the oil and natural gas industry, including carbon capture utilization and storage (CCUS) technologies.

Primary Markets and Conditions Targeted

CAPP's primary focus is on the Canadian market, advocating for policies that support the domestic oil and natural gas industry. The association also engages in international markets to promote Canadian energy exports and investment opportunities.

Financials and Funding

Funding History

As a non-profit industry association, CAPP's funding primarily comes from membership dues paid by its producer and associate members. The association does not engage in external funding rounds or seek investment capital.

Total Funds Raised

Specific figures regarding total funds raised are not publicly disclosed, as CAPP operates on a membership-based funding model.

Notable Investors

CAPP does not have investors in the traditional sense, as it is a non-profit organization funded by its members.

Intended Utilization of Capital

The funds are utilized to support CAPP's advocacy efforts, research initiatives, policy development, and member services.

Pipeline Development

Key Pipeline Projects

CAPP has been actively involved in advocating for the development of pipeline infrastructure to support the transportation of Canadian oil and natural gas. Notable projects include:

Trans Mountain Expansion Project: CAPP supports the expansion of the Trans Mountain pipeline to increase capacity for transporting oil from Alberta to the west coast.

Keystone XL Pipeline: CAPP has advocated for the approval and construction of the Keystone XL pipeline to facilitate the export of Canadian oil to international markets.

Stages of Development

The Trans Mountain Expansion Project has been completed, increasing pipeline capacity. The Keystone XL Pipeline faced regulatory challenges and was ultimately canceled in 2021.

Target Conditions

These pipeline projects aim to address the need for expanded transportation capacity to meet domestic and international demand for Canadian oil and natural gas.

Relevant Timelines

The Trans Mountain Expansion Project was completed in 2023. The Keystone XL Pipeline was canceled in 2021.

Technological Platform and Innovation

Proprietary Technologies

CAPP does not develop proprietary technologies but supports the adoption of innovative technologies within the industry.

Significant Scientific Methods

CAPP promotes the use of scientific methods such as carbon capture utilization and storage (CCUS) to reduce greenhouse gas emissions from oil and gas production.

AI-Driven Capabilities

While CAPP does not develop AI-driven technologies, it encourages the industry to explore and implement AI solutions to enhance operational efficiency and environmental performance.

Leadership Team

Board of Directors

CAPP's Board of Directors is composed of industry leaders who provide strategic direction for the association. As of November 2024, the leadership includes:

Jon McKenzie: President and CEO of Cenovus Energy, serving as Chair of CAPP's Board of Directors.

Terry Anderson: President and CEO of ARC Resources, serving as Vice-Chair of CAPP's Board of Directors.

Executive Team

The executive team works closely with the Board to execute CAPP's vision and mission. The President and CEO, Lisa Baiton, leads the team.

Leadership Changes

Recent Appointments

November 2024: Jon McKenzie was appointed Chair of CAPP's Board of Directors, succeeding Paul Myers.

November 2023: Paul Myers was appointed Chair of CAPP's Board of Directors.

Competitor Profile

Market Insights and Dynamics

CAPP operates in a competitive environment, advocating for policies that support the Canadian oil and natural gas industry. The association collaborates with various stakeholders, including government agencies, Indigenous communities, and other industry groups, to promote the interests of its members.

Competitor Analysis

As an industry association, CAPP does not have direct competitors but works alongside other organizations to advance the interests of the oil and natural gas sector.

Strategic Collaborations and Partnerships

Significant Collaborations

CAPP collaborates with various stakeholders, including:

Government Agencies: Engaging with federal, provincial, and territorial governments to influence policy and regulatory decisions.

Indigenous Communities: Supporting Indigenous participation and prosperity in the oil and natural gas industry.

Industry Groups: Partnering with other industry associations to promote common interests.

Operational Insights

Strategic Considerations

CAPP focuses on:

Policy Advocacy: Influencing policies that support the growth and sustainability of the Canadian oil and natural gas industry.

Research and Data: Providing members with access to industry data and research to inform decision-making.

Member Services: Offering resources and support to member companies to enhance their operations.

Strategic Opportunities and Future Directions

Strategic Roadmap

CAPP's strategic roadmap includes:

Advocacy for Infrastructure Development: Supporting the development of pipeline and export infrastructure to enhance Canada's energy export capacity.