CALGARY, Alberta, June 23 (UPI) -- Canada can play a major role on the global oil market provided the right infrastructure is in place, the Canadian Association of Petroleum Producers said.
"Canada has an important role to play as a global supplier of oil and we can do it at a standard that far exceeds other producing nations," CAPP President Tim McMillan said in a statement. "Through technological innovation, world-class regulatory systems and environmental standards that meet or exceed our closest competitors, Canadian oil can be the world's fuel of the future."
Canada is the top oil exporter to the United States and, with more than 170 billion barrels of proven reserves, holds the third largest reserves in the world. With nearly all of its exports confined to North America, less than 1 percent of its oil is shipped outside the region.
Prime Minister Justin Trudeau has expressed reservations about adding pipeline infrastructure in national territory, preferring a greener agenda. A report from the National Energy Board found oil production in Canada could increase by more than 50 percent by 2040, though growth will be constrained without the addition of new oil pipeline infrastructure.
Canadian oil was designated for the Keystone XL pipeline, which would've stretched to export terminals in the southern United States. Pipeline company Kinder Morgan, meanwhile, aims to double its Trans Mountain network, though it faces opposition from environmental advocates in British Columbia.
McMillan said Canada needs the infrastructure. Growth forecasts for Canada show supply will soon "greatly exceed" demand, leaving the surplus locked in North America unless new export arteries develop.