What Is the Canadian Association of Petroleum Producers (CAPP)

The Canadian Association of Petroleum Producers (CAPP) is a trade organization that represents the interests of petroleum and natural gas companies in Canada.

CAPP lobbies the Canadian government on issues relating to the environment, regulations, and production and exploitation of oil and gas fields. CAPP members produce about 80% of natural gas and oil in the country, generating about $116 billion in revenue annually.

Key Takeaways

  • The Canadian Association of Petroleum Producers represents Canada's oil and natural gas companies. Its members produce about 80% of natural gas and oil in the country.
  • CAPP employs 70 economists, engineers, PR professionals, lawyers, and other staff whose jobs are to further the interests of the natural gas and oil industry.
  • CAPP often finds itself in opposition to environmental groups who are concerned about the industry's harmful effects on the environment.

Understanding the Canadian Association of Petroleum Producers (CAPP)

The Canadian Association of Petroleum Producers was formed in 1992 from the combination of the Independent Petroleum Association of Canada and the Canadian Petroleum Association, the latter of which can trace its origins to the Alberta Oil Operators' Association founded in 1927.

CAPP's goals are to foster growth of Canada's upstream oil and natural gas industry. It is organized into several policy groups focused on regional interests, oils sands, and offshore drilling, among other policy areas. CAPP employs a staff of 70 economists, engineers, public relations professionals, political scientists, lawyers, and administrative personnel.

The group is overseen by a board and up to 78 volunteer governors drawn from the executive ranks of Canada's largest oil and natural gas companies.

Controversial Positions of the CAPP

CAPP has often found itself on opposing sides with environmental groups concerned about the harmful impacts of the oil and gas industry.

CAPP has voiced support for the Keystone XL Pipeline, calling the project "a critical component in getting bottlenecked Canadian oil to market." CAPP has argued the project is needed to create jobs for oil workers in Alberta and generate billions of dollars in revenue for the government. However, TC Energy Corporation has been forced to suspend the project after President Joe Biden issued an executive order revoking the pipeline's permit.

The Keystone project faced opposition from Native American groups whose ancestral lands were in the path of the pipeline. They said the project under President Donald Trump had gone forward without required tribal consultation, environmental review, or consideration for treaty rights.

CAPP also supports hydraulic fracturing, which is the process of forcing pressurized chemicals and water into water tables and aquifers to access underground oil reserves. CAPP says this can be done while protecting surface and groundwater resources.

Opponents of fracking point to studies that find the chemicals and contaminated water run into the aquifers and water tables, making it dangerous for humans and animals to consume and for crops to be grown in these areas.